6 Best Growth ETFs to Buy Now

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

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Growth-focused exchange-traded funds (ETFs) are as straightforward as they sound: They are portfolios of growth stocks.

But not all funds are created equal, and investors must perform due diligence 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 with revenue and earnings 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 protect your downside.

Funds like these tend to be 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.

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 August 26.

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.