The Best Growth ETFs to Invest $1,000 in Right Now
The Motley Fool·2026-01-07 00:32

Core Insights - Growth stocks have been a significant driver of market performance, outperforming value stocks in eight of the last ten years, often by substantial margins [2] - The rise of artificial intelligence (AI) is expected to further bolster growth and technology stocks over the next decade [2] Growth Stocks and ETFs - Investing in growth stocks through exchange-traded funds (ETFs) is recommended for new investors, as these stocks typically show faster revenue and profit growth than the overall market [1][3] - Growth ETFs allow for a diversified portfolio of top growth stocks and facilitate a dollar-cost averaging investment strategy [3] Specific ETFs - Vanguard Growth ETF (VUG): - Tracks the growth segment of the S&P 500, with over 60% of its holdings in technology stocks, and top three holdings (Apple, Nvidia, Microsoft) making up about one-third of the portfolio [4] - Achieved an average annual return of 17.5% over the past decade and 32.5% over the last three years, with a 19.4% gain in 2025 [5] - Invesco QQQ Trust (QQQ): - Tracks the tech-heavy Nasdaq-100 index and has outperformed the S&P 500 nearly 88% of the time over the last decade [6] - Recorded a 20.8% gain in 2025 and has a 19.3% average annual return over the last ten years [7] - Global X Artificial Intelligence & Technology ETF (AIQ): - Focuses on AI stocks and includes international stocks, with nearly 70% of its portfolio in U.S. stocks [8] - Achieved a 36.4% average annual return over the past three years and was up 32% in 2025 [10] - Ark Innovation ETF (ARKK): - Actively managed by Cathie Wood, focusing on companies with disruptive technology, though it carries more volatility [11] - Delivered a 35.5% return in 2025 and has had yearly returns of 50% or more three times in the past decade [12]