A low expense ratio. Growth ETFs charge expense ratios, which tell you how much you’ll pay annually to own the fund, expressed as a percentage of your total investment. The annual fee is typically subtracted on a quarterly basis from your returns. In most cases, the larger the fund, the lower the expense ratio.
How do I choose a growth ETF?
Broad diversification is the biggest strength of ETFs. When choosing a growth ETF, check to see if funds own stocks across a variety of sectors, or whether holdings are largely concentrated among tech stocks. Better sector diversification can help reduce your risk. The right fund holdings.
What are growth exchange-traded funds (ETFs)?
Growth exchange-traded funds (ETFs) are one of two broad categories of ETFs, the other being value 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.
