Three Enduring Exchange-Traded Funds Worth Investing in with $2,000 and Maintaining for an Eternity
Exploring growth stocks without the time or desire to follow each individual's journey? You're far from alone. And luckily, a handful of exchange-traded funds (ETFs) are up for the task! Let's delve into three noteworthy options if you've got an extra $2,000 to spare. Remember, each has its unique qualities, so combining all three might not be the wisest decision.
Vanguard Information Technology ETF
Technology has been leading the market for nearly three decades, and it's safe to say this pace will continue. The Vanguard Information Technology ETF (VGT -2.71%) addresses the concern that top-performing technology names might only be on Nasdaq. This ETF bases its holdings on the MSCI US Investable Market Information Technology 25/50 Index, which doggedly focuses on large, mid, and small-cap technology names regardless of their stock exchange location. Compelling non-Nasdaq stocks like Salesforce, Accenture, and ServiceNow are all well-represented here.
iShares S&P 500 Growth ETF
The original desire to own the Vanguard Information Technology ETF over Invesco QQQ Trust may also apply to this ETF. The iShares S&P 500 Growth ETF (IVW -2.35%) only holds S&P 500 constituents categorized as growth stocks. While it may resemble Invesco QQQ Trust or the Vanguard Information Technology ETF, the S&P 500 Growth Index is unavoidably better-balanced. With a modified cap-weighting approach, the index evades the formation of excessively lopsided portfolios. Be prepared for less volatility, making this fund quieter to stick with during turbulent times.
iShares Russell Mid-Cap Growth ETF
Lastly, despite devoting most attention to large-cap stocks, mid-cap diversification is worth considering. Mid-cap growth stocks generally outperform the S&P 500. Since they've proven their product or service is marketable, they're poised for growth while still seeking to achieve profitability. Mid-cap growth stocks may provide the performance edge you desire. The iShares Russell Mid-Cap Growth ETF (IWP -3.36%) is a nifty ETF option, but the iShares S&P Mid-Cap 400 Growth ETF (IJK -3.02%) is equally effective. Incorporating mid-cap growth ETFs, such as these, into your investment portfolio may logically boost your returns over time.
[1] Source: Yahoo Finance[2] Source: ETF.com
- If you're interested in investing in growth stocks beyond the Nasdaq, you might consider the Vanguard Information Technology ETF (VGT), which includes tech companies from various exchanges.
- The iShares S&P 500 Growth ETF (IVW) is another option, focusing on growth stocks within the S&P 500, ensuring a balanced portfolio and reducing volatility.
- For those seeking to diversify beyond large-cap stocks, mid-cap growth ETFs like the iShares Russell Mid-Cap Growth ETF (IWP) can potentially boost your returns over time due to their focus on profitability and market success.
- In the world of finance, money management involves careful consideration of various investment options, including ETFs, to achieve your financial goals, such as profitability and long-term growth.
