Large-cap growth ETFs are a popular choice for investors seeking stability and growth in their portfolios. These ETFs invest in large-cap companies with strong revenue and high projected growth, making them ideal for long-term investors who can tolerate short-term market uncertainty.
Two top-performing large-cap growth ETFs to consider this year are the iShares Russell Top 200 Growth ETF (IWY) and the Invesco QQQ Trust ETF (QQQ). These ETFs offer exposure to large-cap companies in rapidly expanding industries, providing potential for higher returns over the long term.
The recent jobs report showing an addition of 216,000 jobs in December and an unchanged unemployment rate of 3.7% indicates a resilient economy. However, the robust jobs data may pose a challenge for the Federal Reserve as it tries to cool the economy and slow price increases.
Investing in large-cap ETFs can be a good strategy for risk-averse investors, as large-cap companies tend to be less volatile compared to small-cap or medium-cap companies. These ETFs typically invest in companies with market caps larger than $10 billion, offering stability and growth potential.
Both IWY and QQQ have performed well in the past year, with IWY’s top holdings including Microsoft Corporation, Apple Inc., Amazon.com, Inc., and NVIDIA Corporation. QQQ, on the other hand, offers exposure to the NASDAQ-100 Index and has top holdings in companies like Apple, Microsoft, Amazon, and Broadcom Inc.
Overall, large-cap growth ETFs like IWY and QQQ can be solid investments for investors looking for stable long-term returns in a volatile market environment. Consider these ETFs for your investment portfolio to benefit from the growth potential of large-cap companies.
As of January 8, 2024, the NAV of QQQ is $405.14. The fund has solid fundamentals, reflected in its POWR Ratings where it has an overall rating of A, indicating a Strong Buy. QQQ also has an A grade for Trade and Buy & Hold, as well as a B grade for Peer. Among 61 ETFs in the same group, QQQ ranks at the top.
If you’re curious about all the ratings for QQQ, you can find them by clicking here.
In premarket trading on Tuesday, QQQ shares dropped by $1.98 (-0.49%). Year-to-date, QQQ has seen a decline of -1.12%, while the benchmark S&P 500 index has risen by 0.15% during the same period.
About the Author: Mangeet Kaur Bouns
Mangeet is an investment researcher and financial journalist with a keen interest in the stock market. She uses a fundamental approach to analyze stocks and aims to help retail investors understand the underlying factors before making investment decisions.
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