What is the best large cap growth etf?Many investors are interested in knowing what are currently the best large cap growth ETFs. The reason this question comes up a lot is because there are a lot of advantages to investing in these types of companies in a bull market.

First, large cap companies, which comprise the majority of any large camp ETF, offer stability. These companies are larger and have a more established reputation with consumers, which is one reason they tend to benefit from less volatility than other companies.

Second, growth companies (by definition) are growing at a rate that is faster than other companies.

Large cap growth ETFs essentially hold stocks of these companies that fit the criteria of “stable and growing”.

These Are Some Of The Best Large Cap Growth ETFs


1. QQQ (Invesco QQQ)

The QQQ ETF aims to track the NASDAQ 100 list. This means the fund is tuned to the price and yield performance of the NASDAQ 100, so when this index goes up, the ETF value goes up at the same rate (and conversely goes down at the same rate when the NASDAQ 100 is down).


2. IWF (iShares Russell 1000 Growth ETF)

This fund is set to track with the Russell 1000 Growth Index. This index measures the performance of large and mid cap growth companies in the United States. At least 90% of the assets in this fund are invested in securities that are part of the underlying index.


3. VUG (Vanguard Growth ETF)

VUG tracks the performance of a benchmark index that measures the return of the CRSP US Large Cap Growth Index. Stocks are weighted in this fund in the same proportion as their market caps, so when this index increases or decreases by a certain percent, the fund performs the same.


4. SPY (SPDR S&P 500 ETF)

SPY is not only the oldest ETF, but it also has the largest amount of assets invested. This ETF tracks the S&P 500, which is an index that includes the 500 largest US companies based on market cap.


5. SCHG (Schwab U.S. Large-Cap Growth ETF)

This fund tracks the return of the Dow Jones U.S. Large Cap Growth Total Stock Market Index. This index is comprised of the top 750 growth companies by total market cap. The fund is set up so stock percentages are weighted based on market cap, which allows the fund to track the index very cleanly.

If you are looking to invest in a large cap growth ETF, I recommend considering one or more of the funds mentioned above. Below is a current performance snapshot for these 5 ETFs mentioned above.

ETF Jeff's Final Thoughts

Final Thoughts

I personally feel all investors should have at least some large cap growth stocks in their portfolio, and a large cap growth ETF is my favorite way to hold some of the best large cap growth stocks while naturally diversifying via the ETF wrapper. There are a lot of different ETFs out there that can be considered large cap growth, these 5 above are my favorites, and any of them would likely suit you well.