ETFs

Discovering the Best Large-Cap Growth ETF for Investment

Published December 19, 2023

This year has marked a significant uptick for large-cap growth stocks, with sectors like artificial intelligence (AI) and novel weight loss pharmaceuticals leading the charge. The enthusiasm for these industries has spurred a wave of prosperous outcomes for particular exchange-traded funds (ETFs) that target these sectors. With the anticipated rise of AI and the introduction of advanced weight loss treatments on the horizon, investors can expect this trajectory to maintain its momentum.

Choosing the Premier Large-Cap Growth ETF

Investing in large-cap growth stocks can be efficiently managed through ETFs that mirror the performance of the corresponding market segment. The iShares S&P 500 Growth ETF, the Schwab U.S. Large-Cap Growth ETF, and the Vanguard Growth Index Fund are among the leading ETFs in this category, celebrated for their coupling of minimal fees and consistent decade-long returns, as well as their investment in primary growth areas such as AI and healthcare.

These funds strive to emulate the benchmark index for large-cap growth stocks. For a detailed comparison, here's how these funds stack up against the Vanguard 500 Index Fund, which aligns with the S&P 500:

Comparison and Performance Metrics

When we look at the statistics, all three specialized ETFs have surpassed the S&P 500 over the past ten years. Among them, the Schwab U.S. Large-Cap Growth ETF emerges prominently with the highest total returns and costs that are on par with its closest rival, the Vanguard Growth Index Fund. Investors who lean towards frequent trading may find the iShares S&P 500 Growth ETF more appealing due to its significant average daily trading volume. However, all these funds offer high liquidity, making them accessible for everyday investors with a strategic, long-term perspective.

Top Pick for Large-Cap Growth ETF

If an investor must select a singular standout fund, the Schwab U.S. Large-Cap Growth ETF secures the top spot. It is characterized by exceedingly competitive fees and unparalleled returns in its category, thereby presenting itself as an optimal choice for investors looking to harness the potential of large-cap growth stocks.

Note: Investment in ETFs is subject to market risks including the possible loss of principal. Investors should conduct their own due diligence before making investment decisions.

growth, ETF, investment