3 Brilliant Growth Stock ETFs to Buy Now and Hold for the Long Term
Like the Vanguard Growth ETF, the Mega Cap Growth ETF has a dirt cheap 0.05% expense ratio. It's a great choice for investors who are specifically targeting the largest growth stocks by market cap.
3. iShares Expanded Tech Software Sector ETF
It's rare to see the broader indexes hovering around all-time highs when such a massive portion of the market is in a steep downturn. But that's exactly what's happening with software, which is a core industry in the market's largest sector -- tech.
The iShares Expanded Tech Software Sector ETF(NYSEMKT: IGV) is down a staggering 21.7% year to date as investors question AI's disruption of the software-as-a-service business model.
Some of the fears are warranted. The industry's traditionally high margins are largely dependent on growing user bases through higher subscription volumes and on making updates that justify price increases. But if AI tools can replace entire software workflows, and fewer overall subscriptions are needed, then that's a serious threat to the business model.
Still, it's a mistake to assume that the entire industry should fall just because of innovation. The sell-off in the iShares Expanded Tech Software Sector ETF is an impeccable buying opportunity for investors looking for exposure to names like Microsoft, Palantir Technologies, Oracle, and Salesforce. It can be easier to hold a basket of stocks through a turbulent period than one or two names in a theme, as stocks can also rise and fall to levels beyond your imagination.
The fund is a good buy for investors who prefer to bet on a broader industrywide recovery. However, one drawback is that it features a 0.39% expense ratio, which is significantly higher than the previously discussed Vanguard funds.
Should you buy stock in Vanguard Growth ETF right now?
Before you buy stock in Vanguard Growth ETF, consider this:
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Daniel Foelber has positions in Nvidia and Oracle and has the following options: short March 2026 $240 calls on Oracle. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Nvidia, Oracle, Palantir Technologies, Salesforce, Tesla, Vanguard Growth ETF, Vanguard Value ETF, Visa, and Walmart. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
3 Brilliant Growth Stock ETFs to Buy Now and Hold for the Long Term was originally published by The Motley Fool
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