What are the best growth ETFs?

Growth stocks underperformed the broader market over the past year. The exchange-traded funds (ETFs) with the best one-year trailing total returns are FV, DALI, and FDLO. The top holdings of these funds are shares of the First Trust Energy AlphaDEX Fund, the First Trust Global Tactical Commodity Strategy Fund, and Apple Inc., respectively.

What types of companies are included in growth ETFs?

Growth ETFs are designed to invest in a basket of stocks whose underlying companies have the potential for rapid growth, as opposed to stocks whose prices are relatively undervalued. Growth companies in these funds include Microsoft Corp. ( MSFT ), DocuSign Inc. ( DOCU ), and Micron Technology Inc. ( MU ), among others.

What are the benefits of investing in growth ETFs?

Investing in growth companies offers you the chance to earn greater returns from climbing stock prices, but this approach is riskier than other strategies. There’s no guarantee that a growth company will drive greater profitability over the longer term. In addition, growth stocks experience more volatility, marked by dramatic changes in value.