Growth exchange-traded funds (ETFs) are composed of stocks with massive growth potential. As opposed to income stocks where you can earn a high passive income from dividends, growth stocks pay fewer dividends but have a higher stock price growth potential. The only downside is that you’ll have to pay an annual fee as a percentage of your invested funds to the ETF which is called the “expense ratio.”
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
Here are the best growth ETFs from small cap, mid cap and large cap companies that have the optimal combination of YTD returns and 0.25% or lower expense ratios. No currency hedged, leveraged or inverse ETFs are included.
| Logo | ETF name and ticker | ETF description | Expense ratio | YTD return | Market Cap |
|---|---|---|---|---|---|
 | iShares Morningstar Small-Cap Growth ETF (ISCG) | ISCG is an iShares ETF that tracks the Morningstar Small-Cap Growth Index, offering exposure to small-cap growth stocks. | 0.06% | 0.68% | Small cap |
 | IQ US Mid Cap R&D Leaders ETF (MRND) | MRND is an ETF by IQ Global that invests in US mid-cap stocks with a focus on research and development. | 0.16% | 2.97% | Mid cap |
 | Technology Select Sector SPDR Fund (XLK) | XLK is an exchange-traded fund that seeks to track the performance of the technology sector within the S&P 500 Index. | 0.10% | 32.65% | Large cap |
What Matt thinks about investing in growth ETFs
Investing in growth ETFs is an efficient way to gain exposure to companies that are expected to grow quicker than the overall market — think NVIDIA (NVDA), Netflix (NFLX) and Tesla (TSLA) — without poring over countless individual stocks. Growth ETFs may help minimize some of the risks of investing in individual growth stocks, like increased volatility, by offering safety through diversification.
— Matt Miczulski, Editor, Investments.
Growth ETFs are a great way to add multiple companies with high growth potential into your investment portfolio. In most cases, you’ll also get passive income in the form of dividends but not at the same rate as you would with value ETFs.
Keep in mind, ETFs have an annual fee in the form of a percentage of your invested funds. You can avoid this by picking stocks yourself.
A look at GSD Capital’s highlights, limitations, fees and investment strategies.
Explore the best bonuses for opening a new brokerage account.
These are the best trading platforms for beginners, according to Finder’s comprehensive analysis.
We analyze robo-advisors across 7 key metrics to see how they compare.
A beginner-friendly investing platform with fractional shares and no commissions on stocks and ETFs.
Features and fees to consider before you open an account with this trading platform.
SoFi is a commission-free platform with both active and automated investment accounts.
What you need to know about investing in the leading indicator for the overall US stock market.
Take advantage of $0 trades and no investment minimums with this well-known broker.
A deep dive into the highlights and limitations of Robinhood.
