Investing in growth stocks can produce substantial returns for your portfolio. But picking individual stocks isn't for everyone. Growth stocks are generally harder to evaluate because their valuations are based largely on their long-term potential, which creates a lot of uncertainty for investors. Investing in a growth ETF is a simple solution to add exposure to growth stocks to your portfolio without the need to study individual companies.
Six best growth ETFs in 2026
Many investors interested in growth stocks could benefit from investing in growth exchange-traded funds (ETFs). A growth ETF is a fund that will invest in a large basket of growth stocks. That gives investors exposure to the types of investments with massive potential for big capital returns without needing to analyze individual companies. Here are six growth ETFs to consider.
Fund Name | Expense Ratio | Net Assets |
|---|---|---|
Vanguard Growth ETF (NYSEMKT:VUG) | 0.04% | $352 billion |
Vanguard Mega-Cap Growth ETF (NYSEMKT:MGK) | 0.07% | $32.5 billion |
iShares Russell Mid-Cap Growth ETF (NYSEMKT:IWP) | 0.23% | $20.5 billion |
Vanguard Small-Cap Growth ETF (NYSEMKT:VBK) | 0.07% | $39.3 billion |
iShares MSCI EAFE Growth ETF (NYSEMKT:EFG) | 0.36% | $9.4 billion |
ARK Innovation ETF (NYSEMKT:ARKK) | 0.75% | $7 billion |
1. Vanguard Growth ETF
NYSEMKT: VUG
Key Data Points
The Vanguard Growth ETF (VUG -0.33%) is a large-cap growth stock ETF. The fund aims to replicate the CRSP US Large Cap Growth index, which constitutes half of the CRSP US Large Cap index.
The latter, the CRSP US Large Cap index, comprises the top 85% of U.S. stocks weighted by market capitalization, including companies with market caps as small as $2.1 billion. So, while the index is primarily comprised of large-cap stocks, it also includes some mid-cap stocks.
While weighting the fund by market capitalization keeps fees and asset turnover low, it results in heavy allocations toward the market's biggest companies. The three largest holdings account for more than 30% of the portfolio. Likewise, more than 50% of the portfolio is invested in technology companies.
With an expense ratio of just 0.04%, the Vanguard Growth ETF is one of the most efficient ways to gain additional exposure to growth stocks in your portfolio.
2. Vanguard Mega Cap Growth ETF
NYSEMKT: MGK
Key Data Points
The size of the index, combined with the relative parity in size of its components, makes this small-cap growth ETF much more diversified than its peers investing in larger companies. Investors looking for more small caps should consider the Vanguard Small-Cap Growth ETF.
5. iShares MSCI EAFE Growth ETF
NYSEMKT: EFG
Key Data Points
Some of the biggest growth opportunities are in international markets. The iShares MSCI EAFE Growth ETF (EFG -0.58%) provides exposure to growth stocks in developed markets around the world.
The ETF tracks the MSCI EAFE Growth index, which includes large- and mid-cap companies based outside the U.S. and Canada. The stocks are filtered based on earnings growth history and outlook.
The ETF is more diversified than its U.S. large-cap growth counterparts. A little more than 20% of the portfolio is invested in the top 10 holdings. The index includes companies from Japan, the U.K., France, Switzerland, Germany, and others. If you're looking for additional international stock exposure in your portfolio, the iShares MSCI EAFE Growth ETF is a great option.
6. ARK Innovation ETF
NYSEMKT: ARKK
Key Data Points
How to choose a growth ETF
Before investing in a growth ETF, it's important to consider what type of growth stocks you want to own.
- Small-cap growth stocks notably hold a lot of potential for massive gains but tend to underperform as a group.
- International growth stocks can provide portfolio exposure to innovative companies outside of the U.S. but come with additional risks.
- An actively managed growth fund has the potential to outperform the market, thanks to the insights of a smart investment manager, but could also end up on the other side of the coin.
Once you've determined what kind of growth stocks you want to own, you can select the one that best fits your criteria from the list above or develop your own list. Be sure to consider the expense ratio. And if the ETF tracks an index, look at its record of index tracking. A small tracking error can be worth more than a low expense ratio for those investing on a regular cadence.
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