Explore these Unyielding Expansion ETFs for Your Portfolio in 2025 and Beyond
Diving into the world of investing, a growth ETF might just be the key to boosting your portfolio with minimal fuss. Essentially, a growth ETF is a collection of stocks with the potential to deliver higher-than-average returns, bundled together for easy investment.
Growth ETFs can be enticing, but they come with their own set of risks. While they may be safer than broad-market funds like the S&P 500, they can be more volatile than established stocks. Still, if you're game enough, there are three growth ETFs worth considering for 2025 and beyond.
1. Vanguard S&P 500 Growth ETF (VOOG)
The first ETF on our list, the Vanguard S&P 500 Growth ETF (VOOG), is quite similar to an S&P 500 ETF. The difference lies in its focus on the 234 stocks with the most growth potential. As the S&P 500 includes stocks from the largest U.S.-based companies, this ETF is a relatively safer choice than some other growth funds. However, it still delivers impressive returns, averaging 15.14% annually over the last 10 years.
If you were to invest $200 a month with a 15% average annual return, you could amass around $511,000 after 25 years.
2. Schwab U.S. Large-Cap Growth ETF (SCHG)
Next up, we have the Schwab U.S. Large-Cap Growth ETF (SCHG). This ETF is filled with 229 large-cap stocks, all with the potential to deliver above-average returns. Since large-cap stocks are typically more stable than smaller companies, this ETF sits low on the risk spectrum. In fact, over the past 10 years, it has delivered an average rate of return of 16.55% per year.
If you invested $200 a month at a 16% average annual return, you could accumulate around $598,000 after 25 years.
3. Vanguard Information Technology ETF (VGT)
Lastly, we have the Vanguard Information Technology ETF (VGT), which is undoubtedly the riskiest ETF on our list. However, it also offers the highest returns, averaging 20.75% annually over the past 10 years. This ETF contains 316 stocks from the tech industry, offering investors a cost-effective way to gain exposure to this sector without having to invest in individual stocks.
Investing $200 a month at a 20.75% average annual return could result in a staggering $1.3 million after 25 years. Keep in mind, though, that these returns can be volatile, so it's important to remain cautious.
Growth ETFs can be a fantastic tool for amplifying your savings, but they do come with additional risks. As part of a well-diversified portfolio, these three ETFs could help you earn more than you'd think over time. Always remember to consider your personal investment goals and risk tolerance before making a decision.
- While investing in growth ETFs like VOOG can deliver higher-than-average returns, they also contain inherent risks, such as being more volatile than established stocks.
- Investing in the Vanguard S&P 500 Growth ETF (VOOG) in 2025 could potentially yield significant returns, with an average annual return of 15.14% over the last 10 years, assuming a $200 monthly investment.
- Managing risk is crucial when investing in ETFs, especially the riskiest one on this list, the Vanguard Information Technology ETF (VGT), which has seen an average annual return of 20.75% over the past 10 years but carries higher volatility.
- Finance and investment strategies should always consider an individual's personal investment goals and risk tolerance, and growth ETFs, such as VOOG, SCHG, and VGT, should be part of a well-diversified portfolio to maximize potential returns while minimizing risk.
