ETF trading: 10 Best Growth ETFs Of October 2024

Growth ETFs can save you precious research time by bundling together many high-growth assets into one easy to buy ETF. Growth ETF trading comes with impressively potential high long term returns that make these an attractive set-it-and-forget-it option.

1. Schwab US Large-Cap Growth ETF™ (SCHG)

The Schwab US Large-Cap Growth ETF (SCHG) focuses on large-cap growth stocks in the U.S. market. With a low expense ratio and broad exposure to leading growth companies, SCHG offers investors an opportunity to gain access to major growth sectors like technology, consumer discretionary, and healthcare.

2. SPDR® S&P 500® ESG ETF (EFIV)

The SPDR S&P 500 ESG ETF (EFIV) provides exposure to companies within the S&P 500 Index that meet certain environmental, social, and governance (ESG) criteria. It combines growth potential with sustainability principles, appealing to investors who seek responsible investing without sacrificing performance.

3. iShares ESG Advanced MSCI EAFE ETF (DMXF)

The iShares ESG Advanced MSCI EAFE ETF (DMXF) targets international developed markets, excluding the U.S. and Canada, with a focus on companies that excel in ESG practices. The fund seeks to provide sustainable growth opportunities while adhering to strict ESG standards.

4. Direxion NASDAQ-100® Equal Wtd ETF (QQQE)

The Direxion NASDAQ-100 Equal Weighted ETF (QQQE) offers exposure to the NASDAQ-100 Index but with an equal weighting approach. This strategy reduces the dominance of tech giants and allows for more balanced participation across all 100 companies, offering diversified growth potential.

5. American Century US Quality Growth ETF (QGRO)

The American Century US Quality Growth ETF (QGRO) focuses on high-quality U.S. companies that exhibit strong growth characteristics. With an emphasis on profitability and earnings consistency, QGRO is designed to deliver steady growth through well-established businesses.

6. Invesco S&P SmallCap Momentum ETF (XSMO)

The Invesco S&P SmallCap Momentum ETF (XSMO) focuses on small-cap stocks that demonstrate positive momentum in price. This ETF provides access to the small-cap growth space with the added advantage of capitalizing on stocks with upward price trends, which can lead to higher returns.

7. Fidelity® Enhanced Large Cap Growth ETF (FELG)

The Fidelity Enhanced Large Cap Growth ETF (FELG) targets large-cap U.S. companies with robust growth potential. Using an active management strategy, FELG aims to outperform traditional index funds by selecting high-growth stocks in sectors like technology, healthcare, and consumer services.

8. Vanguard US Momentum Factor ETF (VFMO)

The Vanguard US Momentum Factor ETF (VFMO) seeks to capture U.S. stocks that demonstrate strong momentum, often associated with growth. The fund aims to provide investors with exposure to companies that exhibit upward price trends, making it ideal for those looking to tap into momentum-driven growth.

9. Vanguard Small-Cap Growth ETF (VBK)

The Vanguard Small-Cap Growth ETF (VBK) focuses on U.S. small-cap stocks with high growth potential. VBK offers broad exposure to fast-growing companies in sectors like healthcare, technology, and industrials, providing a diversified way to tap into smaller firms with significant upside potential.

10. Vanguard Russell 1000 Growth ETF (VONG)

The Vanguard Russell 1000 Growth ETF (VONG) offers exposure to large- and mid-cap U.S. growth companies within the Russell 1000 Index. With a focus on established firms showing strong earnings growth, VONG provides investors access to well-diversified growth stocks across multiple industries.

How to invest in Growth ETF CFDs?

Investing in Growth ETF CFDs (Contracts for Difference) involves trading on the price movements of growth-focused exchange-traded funds without owning the underlying assets. Here’s a step-by-step guide on how to invest in Growth ETF CFDs:
1. Choose a Reputable Broker
Markets.com is a prominent online trading platform that offers access to a variety of financial instruments including forex, indices, commodities, ETFs, stocks, and cryptocurrencies. It provides a user-friendly interface and tools for traders to engage in CFD trading across multiple markets. Click here to open an account for free right now.

2. Understand CFD trading
A CFD is a derivative that allows you to speculate on price movements (up or down) without owning the asset. With CFD trading, you can take long (buy) or short (sell) positions, depending on whether you expect the price to rise or fall.

3. Analyze Growth ETFs
Study the performance of the companies included in the Growth ETF. Look at earnings reports, revenue growth, and macroeconomic factors.

4. Determine Your Strategy
1) Long Position: If you believe the Growth ETF will increase in value, you buy (go long).
2) Short Position: If you think the ETF will decline, you sell (go short).
3) Leverage Caution: Use leverage wisely. Although it may amplifies profits, it can also magnify losses.
4) Risk Management: Set stop-loss orders to limit potential losses and take-profit levels to secure potential gains. Risk no more than 1-2% of your account on any single trade.

What to Consider When Choosing a Growth ETF?

1. Low Expense Ratio: Growth ETFs charge an expense ratio, which represents the annual cost of owning the fund as a percentage of your investment. These fees are typically deducted from your returns on a quarterly basis. In general, larger funds tend to have lower expense ratios, which can help maximize your returns.

2. Proven Performance: It's important to evaluate a fund's historical performance to guide your investment decision. Reviewing its five- or ten-year track record can provide insight into how well the management has delivered consistent returns. Keep in mind, however, that past performance does not guarantee future results.

3. Diversification: One of the key benefits of ETFs is their ability to offer broad diversification. When selecting a growth ETF, examine whether the fund invests in a variety of sectors or if it's concentrated primarily in certain areas, such as technology. A more diversified fund can help mitigate risks.

4. Aligned Fund Holdings: Always review a fund’s top holdings to ensure they fit with both a growth investing strategy and the fund's stated investment objectives. Remember, growth funds can vary significantly in their approach and focus.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.Trading cryptocurrency CFDs and spreadbets is restricted for all UK retail clients.