If you want to invest in growth stocks, an exchange-traded fund (ETF) can be a good option for keeping your risk low while allowing you to earn a great return. One ETF that has performed well over the years is the iShares S&P 500 Growth ETF (NYSE Arca: IVW).
This year, its shares are up around 18% and in five years the fund has risen by more than 93%. It has a modest expense ratio of 0.2% and it can give investors access to some of the best growth stocks in the world. A low expense ratio can be extremely valuable as over the long term, funds with high fees can significantly chip away at your overall returns; that isn’t the case with this ETF.
This funds holds large-cap stocks which have promising growth prospects and which make for relatively safe investments. Tech stocks make up around 50% of its holdings, with Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Nvidia (NASDAQ:NVDA) being its top three stocks and accounting for more than 34% of the ETF’s overall weight. In addition to tech, investors can get exposure to many top communication, consumer discretionary, and healthcare stocks as well.
There are approximately 231 holdings in the fund, which ensures investors have good exposure to a broad mix of stocks. This ETF can be ideal for someone who is looking to simplify their investing strategy as you may not have a need to invest in other stocks given how diverse the fund is and how well it could perform in the future.
