6 Best Growth ETFs to Buy Now

The best growth ETFs offer exposure to higher-risk, higher-reward stocks while lessening the risk of a single stock torpedoing your returns.

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Growth ETFs (exchange-traded funds) are as straightforward as they sound: They are portfolios of growth stocks. However, not all funds are created equal and investors must perform due diligence in order to find the best growth ETFs to meet their goals.

By definition, a growth stock is any company with an above-average growth profile. In other words, these are companies whose revenues and earnings are expanding faster than the market average. They also often pay little or no dividends (but not always, as you'll read later), opting instead to reinvest their cash flow in the business to maintain their growth.

This is why owning growth ETFs makes so much sense. By diversifying your growth-stock holdings through a fund, you're protecting your downside.

Funds like these are extremely cheap, efficient vehicles that allow you to invest in dozens, if not hundreds, of growth stocks without having to trade them all individually in your account. They also allow you to be tactical, investing in sectors and industries you think are best positioned to rise going forward.

Investors abandoned growth stocks in 2022 due to higher interest rates and a threat of a recession. However, this corner of the market has regained popularity, with a prolonged downturn looking less likely by the day. 

"So far, there's no evidence of a recession. So as long as there's no evidence of recession, I think the market will probably continue to melt up. People are chasing," Steven Eisman, senior portfolio manager at Neuberger Berman, recently told CNBC

Despite the significant gains growth stocks have seen in 2023, many are still down or are flat from their 2021 highs. Translation: It's not too late to add growth to your portfolio. With that in mind, here are six of the best growth ETFs to add to a core portfolio for the long haul. 

Data is as of September 19. Dividend yields represent the trailing 12-month yield, which is a standard measure for equity funds. 

Will Ashworth
Contributing Writer, Kiplinger.com

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.