|Bid||0.00 x 800|
|Ask||0.00 x 1000|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.04|
|Expense Ratio (net)||0.07%|
After a bumpy ride in August due to escalation in the U.S.-China trade tariff war, Wall Street heaved a sigh of relief thanks to hopes of resumption in trade talks next month and monetary easing policies across the globe.
Growth has been a winner among the various investment factors for more than a decade now while value has scuffled, but the recent trade war-induced market decline has weighed on growth stocks. As just one example, the S&P 500 Growth Index is lower by about 2.5% this month and many growth exchange-traded funds (ETFs) are saddled with worse August performances.Recent price action serves as a reminder that before jumping into growth ETFs, investors should know exactly what they're getting into, including realizing that by virtue of often large weights to cyclical sectors, growth ETFs can be more volatile than broad market funds."A growth company typically has promising earnings potential and tends to invest more in future growth rather than dividend payouts, while a value company tends to be more established, with stable growth rates and dividend distributions," according to S&P Dow Jones Indices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo investors should ensure that their high-growth ETFs really are high-growth instruments. Using the S&P 500 Growth Index as a template, that benchmark allocates about 54% of its combined weight to the technology, communication services and consumer discretionary sectors. Investors searching for high-growth ETFs should seek comparable or higher exposure to those three sectors. * The 10 Biggest Winners From Second-Quarter Earnings With that in mind, let's look at a few high-growth ETFs with solid long-term potential. Invesco S&P 500 Pure Growth ETF (RPG)Expense Ratio: 0.35% per year, or $35 annually per $10,000 investedThe Invesco S&P 500 Pure Growth ETF (NYSEARCA:RPG) follows the S&P 500 Pure Growth Index and that benchmark is a different beast than the aforementioned S&P 500 Growth Index as highlighted by the fact RPG and the more traditional growth index rarely perform in line with each other.With this high-growth ETF, "growth is measured by the following risk factors: sales growth, earnings change to price and momentum," according to Invesco.The integration of earnings variability and momentum to the growth overlay can make RPG more volatile than standard high-growth ETFs, but not alarmingly so. RPG holds over 104 stocks, but features a weight of just 23.53% to the technology sector, which is low relative to the category average.What makes RPG a compelling high-growth ETF with endurance traits is that it's not pricey compared to other growth funds, but it does feature a stellar return on equity (ROE) -- 42.52% -- which is a potentially useful characteristic in turbulent markets. Vanguard Mega Cap Growth ETF (MGK)Expense Ratio: 0.07%For investors looking to focus on mega-cap names via a high-growth ETF, the Vanguard Mega Cap Growth ETF (NYSEARCA:MGK) is a fund that makes a lot of sense and, of course, investors get the benefit of MGK being a cost-friendly Vanguard fund.In addition to those favorable fees, MGK has outperformed the S&P 500 Growth Index by 240 basis points over the past three years while being only slightly more volatile. True to its mega-cap edict, this high-growth ETF's 124 components have a median market value of nearly $161 billion. * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk MGK allocates nearly 61% of its combined weight to technology and consumer cyclical traits that solidify its status as a high-growth ETF. Top 10 holdings in MGK feature five Dow components, including Boeing (NYSE:BA) and Apple (NASDAQ:AAPL). First Trust Small Cap Growth AlphaDEX Fund (FYC)Expense Ratio: 0.70%The small-cap growth combination can be a volatile marriage, but for risk-tolerant investors, it can be a winner, too. The First Trust Small Cap Growth AlphaDEX Fund (NASDAQ:FYC) is a pricey high-growth ETF, but it has been among the more solid options in the small-cap growth space.By adding a qualifier, such as growth, small-cap high-growth ETFs are likely to have fewer components than their traditional rivals and that is the case with FYC as the First Trust fund has just 262 components.Since this high-growth ETF is a small-cap fund, investors should expect some healthcare exposure and that's true with FYC as this fund devotes almost 23% of its weight to that sector. Technology and industrial stocks combine for almost a third of FYC's weight.Overall, FYC is a unique alternative for investors looking to get away from cap-weighted funds, but the risk with this high-growth ETF is that will not outperform competing strategies by enough over the long-term to merit what is an above-average fee.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 "Boring" Stocks With Exciting Prospects * 15 Cybersecurity Stocks to Watch as the Industry Heats Up * 5 Healthcare Stocks to Buy for Healthy Dividends The post 3 Durable High-Growth ETFs That Can Endure appeared first on InvestorPlace.
We have highlighted some investing ideas that could prove to be extremely beneficial for investors for the rest of the year in the current market environment.
Among the leading Wall Street firms, Morgan Stanley has been perhaps the most persistently bearish about the stock market since the latter half of 2018. Now, just as the bulls are reveling in the market's rebound to new record highs this week, a report from Lisa Shalett, chief investment officer (CIO) at Morgan Stanley Wealth Management, warns about "the vulnerability of growth stocks" and the negative consequences that this may have for the market as a whole. "One of the most durable characteristics of the 10-year bull market in stocks has been the leadership of growth-style stocks—and in particular, technology stocks.
Investors should reposition their portfolio for more exposure to the growth space to obtain a nice momentum play. For them, we have presented five ETFs and stocks that are ready to bloom this spring.
While value investing has garnered immense attention in volatile markets, growth stocks have more upside potential in the coming months, especially if the trade deal is reached.
There are some certainties when it comes to retirement investing and planning. Chief among those certainties is that investors should not put off saving for retirement. The earlier an investor starts, say in his or her 20s, the larger the retirement portfolio is likely to be given the benefit of time. Second, instruments such as exchange-traded funds (ETFs) and index funds make for ideal retirement planning investments because many of those funds carry low fees. In addition to the diversification benefits offered by many index funds, those low fees matter over time. The less an investor loses in fund fees, the more of his or her total returns are kept. Another retirement planning certainty is that Vanguard funds, be it ETFs or index funds, are great cornerstones of retirement portfolios because many of these funds offer diversification at attractive price points. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 High-Yield Monthly Dividend Stocks Here are some of the best Vanguard retirement funds for consideration by young investors. ### Vanguard Mega-Cap Growth ETF (MGK) Expense Ratio: 0.07%, or $7 annually per $10,000 invested Vanguard Mega-Cap Growth ETF (NYSEARCA:MGK) is one of the best Vanguard retirement funds for young investors for several reasons. One of those reasons is that an investor in her 20s, with a long-term time horizon, can withstand some of the gyrations associated with growth stocks. On the other hand, the MGK probably is not suitable for an investor in his 70s. Data confirm growth stocks are usually more volatile than the broader market. Last year, MGK was 300 basis points more volatile than the S&P 500 and 280 basis points more volatile than the Vanguard Mega Cap ETF (NYSEARCA:MGC), this Vanguard retirement fund's broader counterpart. Many growth funds, including MGK, are heavily allocated to the consumer discretionary and technology sectors, meaning this Vanguard retirement fund is a suitable alternative for investors that do not want to tap sector-specific products. Technology and consumer cyclical names combine for almost 55% of MGK's weight. Top 10 holdings in this Vanguard retirement fund include Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN). ### Vanguard Small-Cap Value ETF (VBR) Expense Ratio: 0.07% The Vanguard Small-Cap Value ETF (NYSEARCA:VBR) is a standout among Vanguard retirement funds because there is significant long-term potency in combining the small size and value factors. Historical data confirm the usefulness of VBR as a solid Vanguard retirement fund option. "From 1928 through 2016, the S&P 500 index compounded at 9.7%, while small-cap value stocks grew at 13.5%," according to MarketWatch. VBR holds 868 stocks, giving it a deep bench relative to some other factor-based small-cap strategies. Some of the volatility associated with small caps is mitigated with this Vanguard retirement fund because, with a median market capitalization of $3.3 billion among its holdings, VBR is actually a mid-cap fund. * 10 Stocks to Sell in February VBR devotes over 54% of its combined weight to the financial services and industrial sectors. ### Vanguard International Dividend Appreciation ETF (VIGI) Expense Ratio: 0.25% International stocks or funds should be a part of well-balanced portfolios, particularly for younger investors because investors in their 20s have time on their side, meaning they can endure some of the volatility that comes with ex-U.S. investing while waiting for some of these markets to rebound after years of disappointment. As its name indicates, the Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI) is a dividend ETF, which bolsters VIGI's credibility as one of the better Vanguard retirement funds. Younger investors do not need to take the dividends paid by VIGI. Rather, they can reinvest those payouts. When done over the long-term, dividend reinvestment plays a major, positive role in long-term total returns. The $1 billion VIGI holds 357 stocks, nearly 28% of which are emerging markets names. Europe is this Vanguard retirement fund's largest regional exposure at 49.10%. Over the past two years, VIGI is beating the MSCI All-Country Ex-US Index by nearly 400 basis points while displaying comparable volatility to that international benchmark. As of this writing, Todd Shriber did not own a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 of the Best Stocks to Buy for a Dovish Federal Reserve * 5 Best Fidelity ETFs for Retirement Savers * 7 Blue-Chip Stocks That Could Lead the Market Higher Compare Brokers The post The 3 Best Vanguard Retirement Funds to Buy in Your 20s appeared first on InvestorPlace.
Five growth ETFs fell to their long-term 200-day moving averages. A rebound is possible from that level, which makes the current action a major test for these funds.