IUSG - SCHG: The Best Performing Growth ETF As Long As Sentiment Remains Positive
2024-05-17 11:11:42 ET
Summary
- The Vanguard Growth Index ETF is the most popular growth ETF, but it includes companies with unimpressive earnings growth. Here we consider alternatives.
- The Schwab U.S. Large-Cap Growth ETF and iShares Russell 1000 Growth ETF have significantly outperformed the Vanguard Growth Index ETF over the past decade.
- Performance of Growth ETFs during the long period when Growth was out of favor starting in 2000 is quite different from that of the past decade.
- We examine the methodology used to construct SCHG, IWF, and IVW for insight into their performance in differing market environments.
Seeking Alpha has just opened a Growth and Total Return chat which is a welcome addition for those of us who invest for capital growth rather than an income stream. And the discussion there has turned my thoughts to the topic of which Growth-oriented ETFs are the most attractive.
There are several ways to approach this topic. Some people invest in Mega Cap ETFs like ( XLG ) or The Vanguard Mega Cap ETF ( MGK ) since these have been dominated for years by the huge companies that have grown their earnings aggressively over the past decade. Others invest in the Invesco QQQ Trust ( QQQ ) whose heavy investment in Tech stocks and low dividend payout has made it very much a growth oriented ETF for decades....
SCHG: The Best Performing Growth ETF As Long As Sentiment Remains Positive