What is the difference between growth and value ETFs?

Growth ETFs select companies with above-average earnings or revenue growth, while value ETFs target companies trading below their intrinsic value based on metrics like P/E ratio and price-to-book. Growth stocks tend to have higher multiples and lower dividends, while value stocks offer more income and lower valuations.

Are growth ETFs too risky?

Growth ETFs are more volatile than broad market funds, especially during rising interest rate environments. However, they invest in some of the highest-quality companies in the market with strong competitive positions. For investors with long time horizons, the higher volatility has historically been rewarded with superior returns.

Should I buy a growth ETF if I already own QQQ?

There is significant overlap between QQQ and growth ETFs like VUG, since many large tech companies appear in both. Adding a growth ETF to a QQQ position concentrates your portfolio further in growth stocks. Consider whether this aligns with your desired asset allocation before doubling up.

Best ETFs/Best Growth ETFs for 2026

Best Growth ETFs for 2026

Growth ETFs invest in companies exhibiting above-average revenue and earnings growth, typically including technology leaders, innovative disruptors, and companies with strong competitive advantages that allow them to compound earnings at high rates. Growth investing has been one of the most successful styles over the past decade, driven by secular trends in technology adoption, digital transformation, and the dominance of platform-based business models.

VUG from Vanguard tracks the CRSP US Large Cap Growth Index, offering broad exposure to large-cap growth stocks at Vanguard's characteristically low expense ratio. IWF from iShares tracks the Russell 1000 Growth Index and is one of the most popular growth ETFs with excellent liquidity and options market depth. SCHG from Schwab tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index and provides competitive growth exposure at the lowest expense ratio among major growth funds.

Growth stocks tend to outperform during periods of low interest rates and strong economic expansion, but they can underperform significantly when rates rise or when the market rotates toward value and defensive sectors. Growth ETFs typically have higher price-to-earnings multiples and lower dividend yields than the overall market, reflecting the premium investors pay for superior earnings growth potential. Understanding these dynamics and maintaining a long-term perspective is essential for growth ETF investors.

How We Rank

ETFs are ranked by assets under management (AUM). Only ETFs with $50M+ in assets are included. Data is updated daily.

#	Symbol	Fund Name	Expense Ratio	AUM	YTD	Div Yield	Holdings
1	VUG	Vanguard Growth ETF	0.03%	$317.80B	-82.26%	0.43%	166
2	IWF	iShares Russell 1000 Growth ETF	0.18%	$127.60B	-73.94%	0.38%	387
3	IVW	iShares S&P 500 Growth ETF	0.18%	$72.75B	+10.17%	0.41%	145
4	SCHG	Schwab U.S. Large-Cap Growth ETF	0.04%	$56.15B	+4.45%	0.38%	196
5	SPYG	State Street SPDR Portfolio S&P 500 Growth ETF	0.04%	$51.21B	+10.15%	0.53%	145
6	VBK	Vanguard Small-Cap Growth ETF	0.05%	$38.70B	+13.48%	0.53%	579
7	IUSG	iShares Core S&P U.S. Growth ETF	0.04%	$31.14B	+10.59%	0.55%	387
8	VOT	Vanguard Mid-Cap Growth ETF	0.05%	$29.20B	+3.00%	0.65%	133
9	MGK	Vanguard Mega Cap Growth ETF	0.05%	$27.90B	-78.73%	0.37%	69
10	CGGR	Capital Group Growth ETF	0.39%	$23.20B	+3.33%	0.10%	109
11	RDVY	First Trust Rising Dividend Achievers ETF	0.47%	$21.91B	+6.62%	1.10%	51
12	SDY	State Street SPDR S&P Dividend ETF	0.35%	$20.97B	+6.29%	2.40%	155
13	IWP	iShares Russell Mid-Cap Growth ETF	0.23%	$19.83B	-0.21%	0.38%	277
14	IWY	iShares Russell Top 200 Growth ETF	0.20%	$16.93B	+4.54%	0.38%	110
15	EFG	iShares MSCI EAFE Growth ETF	0.34%	$15.37B	+5.64%	2.49%	370
16	IWO	iShares Russell 2000 Growth ETF	0.24%	$14.28B	+14.11%	0.55%	1,093
17	IJK	iShares S&P Mid-Cap 400 Growth ETF	0.17%	$10.88B	+15.64%	0.62%	244
18	SDVY	First Trust SMID Cap Rising Dividend Achievers ETF	0.58%	$10.87B	+8.06%	1.24%	190
19	CGGO	Capital Group Global Growth Equity ETF	0.47%	$10.70B	+13.19%	1.99%	102
20	CGUS	Capital Group Core Equity ETF	0.33%	$10.42B	+7.48%	0.95%	74
21	JGRO	JPMorgan Active Growth ETF	0.44%	$9.62B	+4.26%	0.17%	119
22	IJT	iShares S&P Small-Cap 600 Growth ETF	0.18%	$7.37B	+14.03%	0.87%	352
23	TCAF	T. Rowe Price Capital Appreciation Equity ETF	0.31%	$7.04B	+4.74%	0.51%	96
24	DIVO	Amplify CWP Enhanced Dividend Income ETF	0.56%	$6.95B	+2.47%	6.30%	29
25	VFLO	VictoryShares Free Cash Flow ETF	0.44%	$6.79B	+8.99%	1.43%	52

What to Look For

Compare the index methodology, as different growth indices use different criteria to classify stocks as growth — some focus on earnings growth rates, while others use revenue growth, momentum, or a combination. This leads to different holdings and sector weights. Expense ratios for major growth ETFs are very low, ranging from 0.04% to 0.20%.

Check the concentration in top holdings, as growth ETFs tend to be dominated by a handful of mega-cap tech stocks. Also compare the overlap with broad market ETFs you already own — adding a growth ETF to a portfolio that already holds QQQ or a large S&P 500 position may create excessive tech concentration.

Which Growth ETFs Is Best for You?

VUG is an excellent core growth holding with broad exposure to over 200 large-cap growth stocks at a low expense ratio of about 0.04%. Its holdings span the major growth sectors including technology, consumer discretionary, and healthcare. VUG strikes a good balance between concentration in top performers and diversification across the growth universe.

IWF tracks the Russell 1000 Growth Index, one of the most widely followed growth benchmarks in the industry. With strong liquidity and a deep options market, IWF is popular with both long-term holders and active traders. Its holdings are similar to VUG but with slightly different weights due to index methodology differences.

SCHG from Schwab offers the lowest expense ratio among major growth ETFs at around 0.04%, making it the most cost-effective choice for long-term investors. Its performance closely mirrors VUG and IWF, and the choice between them often comes down to brokerage preference and tax lot considerations rather than meaningful investment differences.

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All Growth ETFs VUG vs IWF