hi I'm Jimmy in this video I'm gonna walk through five of my favorite growth
ETFs now this video is coming off two videos that I did on different good
dividend ETFs and I got a couple comments about my thoughts on growth and
value tips so I thought it makes sense to look closer at both value and growth
ETFs this video is my five favorite growth ETFs my next video I'm gonna be
looking at my five favorite value ETFs okay so let's jump into our first growth
ETF first up we have the Vanguard growth ETF ticker symbol VUG they have a
dividend yield of about 1% they have bought 51 billion dollars in the fund
and they charge just four basis points as an expense ratio and when we look at
their top holdings well we see many of the large companies that we would expect
to see in this type of portfolio companies like Microsoft Apple Amazon
Facebook and the way that they pick these companies are the way that they
pick the companies that end up in this particular ETF is that they focus on the
long term growth of earnings per share then they consider the short term growth
of earnings per share and then they also look at the potential growth of revenue
and finally they try to weigh in things like return on assets and when we look
at their sector breakdown well we can get a better understanding of how varied
this particular growth ETF really is overall they have about 280 companies
within the ETF and as we could see about 32% of this particular ETF is focused in
technology stocks which makes a lot of sense since a lot of growth is coming
out of the technology sector besides that it's fairly well spread around now
let's imagine that we think that technology should be a bigger focus of
our growth ETF since it's been so strong and it's likely like technology's going
to do well in the next couple of years well if that's true we may like our next
growth ETF next up we have the Vanguard Information Technology ETF ticker symbol
VGT they have a dividend yield of about 1.1 percent thirty billion dollars in
assets in the fund and as Vanguard does best they have a good fee at about ten
basis points and as I alluded to before when we look at their sector breakdown
well it's dominated by technology stocks which could be a bit more in line with
where we think growth might be in the next
couple years I think technology is likely to continue to do well so I for
me I think that this makes sense as a dominant position and then when we
switch over to the top holdings well this once again might be more in
line with what we're picturing clearly there's though this growth ETF is led by
companies like Apple and Microsoft but they have some other great companies in
there companies like Visa and MasterCard I'm a big fan of Intel Cisco these are
solid companies that are likely to see some growth in the next few years so
this is the main reason I included this in our top five growth ETFs video
because I think it would make sense if we're going to focus somewhere I think
technology is a smart place to focus another option is to shift away from
these large companies altogether so to take it down in size a bit next up I
have the iShares Russell Mid Cap Growth ETF ticker symbol IWP they have a
dividend yield of slightly more than half a percent and they have about 12
billion dollars in assets they also have an expense ratio of about 24 basis
points now clearly this growth ETF focuses on mid cap growth stocks and
when we look at some of their top holdings well we can see that they
invest in companies like AMD Dollar General and Lululemon and we might be
able to tell by the size of their holdings that they hold a decent amount
of companies within this ETF in fact they have about 400 mid-cap growth
stocks and it's a fairly diversified ETF as those 400 or so companies are spread
out amongst a bunch of different sectors and if we're curious I know AMD is like
a 60 billion dollar company that's why when I first saw that I was like really
mid cap but I guess it depends on how you define mid cap but I found that the
companies in this ETF range from about two billion dollars to as high as 80 1
billion dollars although most of them fall in the 20 in the 5 to 25 billion
dollar range AMD is one of the outliers okay now what if we're after even
smaller companies that have more growth potential then perhaps the Vanguard
small cap ETF is what we're looking for ticker symbol VBK they have a dividend
yield of about half percent they have about 26 billion dollars in assets and
they have an expense ratio of about 7 basis points when we look at their top
holdings well once again we may notice some of their top companies
don't account for even 1% of this portfolio and that's because this
particular growth ETF has about five hundred and seventy four companies in it
and when we switch over to their sector breakdown well we can see once again
it's fairly diversified amongst a whole bunch of different sectors which is
likely a good thing to have for investors from a risk control standpoint
okay now let's shift over to a slightly different version of a growth ETF this
is the iShares core dividend growth ETF ticker symbol DGRO they have a
dividend yield of about 2.3 percent they have about ten billion dollars in the
fund and they charge a fee of about eight basis points once again when we
switch over their sector breakdown or we can see that they're probably the most
diversified growth ETF that we've looked at so far which once again has a place
in most portfolios they have almost 500 companies in this particular ETF and
they're truly a all sizes they would truly have all sizes of companies
ranging in companies as low as a billion five as far as market cap to his largest
companies like Microsoft and Apple which are worth over trillion dollars each now
the reason I'm including a dividend growth ETF on a list of top growth ETFs
is it really revolves around how this particular ETF goes about selecting the
companies within it for example they must have consistent dividend growth
over the past five years they also need additional room for growth in both
earnings per share and dividends looking out the next few years this allows for
this ETF to exclude companies that pay a large portion of their profits as
dividends and ideally the companies within this ETF can use those retained
earnings to both grow the business itself and pay at least a small piece of
their profits as dividends which as an investor I'm a big fan of I also like
the upside that the reinvesting of the retained earnings can do for the company
so I think this is sort of the best of both worlds now I know that in each of
these five growth ETS that I mentioned I talked about their fees and I probably
should have been a bit more clear that I was specifically referring to their
expense ratio and although this is the most popular of all the ETF fees it's
certainly not the only one out there there are instances of other
fees that we as investors should be aware of and if you're curious actually
did a video on the broader range of ETF fees out there and that could be a good
next video for you to watch if you're interested there's a link right here
there's a link in the description below and I really want to thank you for
sticking with me all the way into the video I really appreciate it thanks and
I'll see in the next video