3 Growth ETFs to Buy With $5,000 and Hold Forever

Core Viewpoint - Growth ETFs provide a diversified investment option for long-term capital appreciation by focusing on companies with above-average earnings and revenue growth potential [1][2]. Group 1: Vanguard Growth ETF - The Vanguard Growth ETF (VUG) tracks the CRSP US Large Cap Growth Index, focusing on large U.S. companies in technology and consumer cyclical sectors [4]. - It has an expense ratio of 0.04% and has generated average annual returns of approximately 17.4% over the past decade [5][4]. - A $5,000 investment could potentially grow to over $24,000 in ten years if past performance continues [5]. Group 2: Invesco QQQ Trust - The Invesco QQQ Trust (QQQ) tracks the Nasdaq-100 index, heavily weighted towards technology, with an expense ratio of 0.20% [9]. - It has outperformed the S&P 500 with total returns of around 456% over the last decade, translating to an annualized return of 19.6% [12]. - A $5,000 investment in QQQ could be worth more than $29,000 in ten years if the performance trend continues [12]. Group 3: Schwab U.S. Large-Cap Growth ETF - The Schwab U.S. Large-Cap Growth ETF (SCHG) tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index and has a low expense ratio of 0.04% [13]. - It boasts a 10-year annualized return of 18.18%, with a $5,000 investment potentially growing to over $26,000 in a decade [16]. - The ETF holds 197 stocks, with significant exposure to megacap companies like Nvidia, Microsoft, and Apple [15][13].