My Five Favorite Growth ETFs
My core portfolio includes five growth ETFs with different growth strategies. Diverse strategies help to reduce fund overlap and lower the overall risk profile. Each fund was selected based on its past performance. I allocate the ETFs based on their beta, so the more volatile ETFs have a smaller allocation. This reduces volatility in my portfolio while producing similar gains to an equal-weight allocation. In order of their allocation size, the ETFs are:
1) GARP – Growth stocks with a “value” filter.
2) QQQM – Nasdaq 100 index fund.
3) QGRW – Growth stocks with a “quality” filter.
4) PWB – Smart Beta large-cap growth.
5) SPMO – S&P 500 stocks with a “momentum” filter.
SPMO is the most volatile and has outperformed during bull markets. GARP tends to outperform during corrections, due to its “value” filter. QQQM is the worst performer of the group, but functions as my baseline. These five funds have a lot of tech in them, but they’re not sector-specific funds like XLK or VGT.
If you’re looking to outperform SPX/SPY in the long-run and willing to accept greater volatility, you might want to consider one (or more) of these funds. What are your thoughts on growth ETFs?
