3 Growth ETFs to Consider for 2025 and Beyond

Investing in growth ETFs is a smart way to enhance your investment portfolio without requiring extensive effort. A growth ETF consists of a collection of stocks that are expected to provide returns higher than average, all packaged into one single investment.

While growth ETFs can present more risks compared to broader market funds such as S&P 500 ETFs, they also carry the potential to significantly increase your wealth over time. Below are three growth ETFs that might be worth considering in 2025 and in the years to come.

1. Vanguard S&P 500 Growth ETF

The Vanguard S&P 500 Growth ETF (VOOG) is constructed similarly to an S&P 500 ETF, but focuses on just 234 stocks out of the S&P 500 index that are deemed to have the highest growth potential.

The S&P 500 index includes stocks from 500 of the largest companies in the United States, ensuring that only strong performers meet the criteria for inclusion. Thus, the Vanguard S&P 500 Growth ETF can be less risky compared to many other growth-oriented funds. High-growth stocks may experience more volatility, but those in the S&P 500 are likely to endure and recover from market dips more effectively.

Over the past decade, this ETF has yielded an average annual return of 15.14%, which is slightly higher than the 13.06% average return of the general Vanguard S&P 500 ETF. If you invest $200 each month with an average return of 15%, you could potentially accumulate around $511,000 over 25 years.

2. Schwab U.S. Large-Cap Growth ETF

The Schwab U.S. Large-Cap Growth ETF (SCHG) comprises 229 large-cap stocks from different sectors, all demonstrating high potential for above-average returns.

This ETF is also considered relatively lower risk as it encompasses large-cap stocks, which represent companies with a market capitalization of at least $10 billion. These companies are typically more stable than their smaller counterparts.

While substantial stocks can still experience short-term fluctuations, large-cap stocks tend to have stronger recovery potential from downturns. Long-term investors can generally expect more consistent growth when investing in large-cap stocks compared to smaller stocks.

This ETF has averaged a remarkable annual return of 16.55% over the last 10 years. By investing $200 each month with an average return of 16%, you could see your investment grow to about $598,000 over a 25-year span.

3. Vanguard Information Technology ETF

The Vanguard Information Technology ETF (VGT) is the riskiest option on this list, but it also offers the highest potential returns. It includes 316 stocks from the technology sector.

Investing in a sector-specific ETF like this can provide targeted exposure to technology without the need to buy individual stocks. However, these ETFs tend to be less diversified, so it's essential to maintain a balanced portfolio with other industry stocks or funds to mitigate risk.

For those who are prepared to take on greater risks for possibly higher rewards, this ETF could be an excellent choice. Over the past decade, it has produced an impressive average return of 20.75% per year, which could transform a monthly investment of $200 into nearly $1.3 million after 25 years. However, keep in mind that the tech sector is quite volatile, so it's essential to manage your expectations if you decide to invest here.

In summary, while growth ETFs can boost your investment potential, it's important to be aware of the associated risks. If included in a well-balanced portfolio, these three ETFs could help you achieve notable financial growth over the years.

ETFs, Growth, Investment