Best growth ETFs for long-term Investors
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- Опубліковано 29 кві 2023
- The best growth ETFs for long-term Investors can be subjective or objective depending on how you break it down. In order to make this an objective analysis, I take a multifaceted approach at how I view what constitutes as the best growth ETF.
Methodology for picking the best growth ETF 0:58
SPYG 3:55
VUG 5:34
SCHG 7:10
QQQ 9:24
VGT 10:12
Side by side comparison 16:10
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I'm not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you.
#DividendGrowthInvesting
Which growth ETF is your favorite?
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I have a brokerage account, a Rollover IRA and a Roth IRA. In my Rollover, I have APPL shares, VTI & VUG. My Roth has APPL shares and SCHD. In my brokerage account, I have about 35% SCHG, 35% SCHD and 30% VOO and I'm buying more of all 3 of those as often as possible. Maxing out my Roth in January of each year and then funding my brokerage account throughout the entire year with as much money as I can possibly muster. I'm borderline obsessed with funding my accounts with as much money as possible. In the near future, I'm looking at adding XLV and some individual dividend stocks to my accounts. I love investing!
What was the reason for putting in different accounts (Rollover and Roth and Brokerage)? Are the ones that mentioned have different tax rates and that's why you put them in those accounts or it is just random?
Finally a video straight to the point without the lengthy preamble and needless graphics. Great job.
QQQM is my growth ETF, it’s basically identical to the QQQ but a cheaper expense ratio.
It’s for long term holders compared to QQQ which people tend to trade all the time.
Very good point!
I’d take a look at MGK near identical to QQQ/M same top 10 holdings more weighted in tech with a 0.07 expense ratio. also beats out VUG on returns as well
You seem like you really try to help and very transparent with honesty
Very useful info especially the overlap analysis. The fact that the growth equities are not taxed until you take profit vs dividends makes it important to have both type of investments. Dividends in IRA accounts are safe from taxes.
Glad to hear it was helpful!!
I really appreciate this video! Very informative, well researched and nicely presented! Wipll definitely be checking out your other videos!
Awesome! Thank you!
Not sure I heard you mention the word “dividend” once!?!?! 😂. Awesome video. This video was extremely helpful. How can I help support you and the channel more? I feel like I need to start paying for all the knowledge you’ve given me over the last couple years! I wait for your video uploads every week!
Hey Mike!! Thank you so much man! Simply watching and commenting mean so much to me! I'm glad you are here!
Great explanation of market cap weight and these indexes. Thank you! 👍
Thanks for watching!!
I finally get why you like vti and vgt. Great video.
:) Really glad it made sense
Not gonna lie, I hit "thumbs up" and then I listen to your videos cause I already know it's gonna be good for my investment thoughts
Thanks man!! I appreciate you saying that!
Thanks for the video
Thanks for watching!
I learnt a lot from this video thank you !!!
Glad it was helpful!
This was by far the best and most informative UA-cam on growth ETFs I have seen and I think you
Thank you so much for watching and commenting this!
No gold!!! Leaves Merely a flesh wound.
Love the analysis, I only have Dgro and Schd in etf’s. But you always make a case to tweak the portfolio.
Thanks as always for your Sunday videos.
SCHD/DGRO are great if you never want to sell your shares. If you want to sell your shares in the future, these ETFs in this video may be a good option.
My future wife has QQQM and XLK (similar performance in comparison to VGT) in her DGI portfolio and she has been really happy with the performance! I think VGT, SPYG or SCHG, VTI, XLK, and QQQM (or QQQ) are amazing for long term growth and performance!
Sounds like you snatch yourself a good one and the ETFs are also great! :D
I do XLK in my Roth when I can’t afford VGT lol. Very similar but Vgt takes 2 months of contributions to afford in Schwab
I just picked up 100 shares of SCHD for my daughters custodial accounts at 71.20 per share. I've got an auto buy set for VUG at just over $214 per.
nice!! Your daughter is very lucky to have you!!
Start it early! Every dollar you put in today, is basically $4 in ~18 years.
One advantage of QQQ is the liquidity allows you to sell calls for additional income.
I agree to keep your positions to below 5% if you are American. However as a Canadian our index only has a few quality companies to choose from so it makes sense to be more concentrated. However that is just my opinion
Love a good etf!
I actually use Ftec vs Vgt because a lower expense cost, and nearly the same returns. I will be adding QQQM for my other growth stocks I think.
I can see that. Yeah QQQM would be better because of the low expense ratio.
I'll take Vanguard thank you 👌
Thank you for video. What about ETF XLK. This is the winner in total return.
Love you Jake
Thoughts on XLK AND XLY? Powerful returns for both and I hold equal weight in both. Schd is my safety net though!
I've been going back and forth over whether to sell my Apple and Costco stock and just put it into a growth fund like these. I mean most of my money is in SCHD and DGRO, so it makes sense, but I find it hard to pull the trigger on that one! 😂
Hey Chad! I tend to do the same thing to be honest.. Nothing wrong with keeping them and just having them at
Etfs are the best way IMO for pretty much everyone. Prior to watching this, I would go with VGT, QQQ, VUG. Also some similar mutual funds. Also total Nasdaq mutual fund, which is not available in M1
Hey Ethan! 100% agree! I do get a little tempted to "test my luck" with some growth stocks when I see how well NVDA and TSLA have done.. But I wouldn't trust myself with doing more than a few % in something like that.
Funny enough, I have a VERY similar portfolio to this! Here is mine:
Roth: VGT QQQM SCHD
Individual: VGT QQQM SCHD SCHG VUG VTI IVW DGRW
Personally, I begin by constructing a super portfolio of individual stocks. Then I find which indexes with as little overlap as possible own those stocks. And I choose the best growth indexes.
SCHD will be my divided index into retirement so I’m building it a bit ahead of time in both accounts.
Why so much overlap though? QQQM, VUG, SCHG are similar.
Hey Jake, thanks for the video and great work. If I may ask, what program do you use for screen share and your edits?
Hey Troy! I use Camtasia for both: techsmith.z6rjha.net/44xen
How did you get this fund overlap tool? Thank you for your content
❤❤❤very clear and great contents as always, love your videos. By the way, is your son under 18yrs? If so, can you show me how to open an account for my son as well ??
I love QQQM, QQQ but a lower expense ratio!
Yes QQQM is better because of the expense ratio.
Hello man
Can you please make a video were you talk about the dividend irrelevance and why you should go for growth vs value when is studied that over the long term value always beat growth, please make a video reacting to Ben Felix video on dividend irrelenvance and small/value stock video where he explain why investing in growth is detrimental for your return and why dividend are not important, sorry for my english and ty
I would recommend watching this video where I talk about it: ua-cam.com/video/JD-7Y3DezXU/v-deo.html
Not sure what % of your viewers are from the UK but I would love a similar edition of this video for ETFs available in the UK :)
There are a handful based out of the UK. I'll have to take a look at them!
@@DividendGrowthInvesting Thanks so much Jake 😁
Just started a new M1 portfolio.
50% SCHD
25% SCHG
25% FHLC
Once energy dops during the upcoming recession. Add energy in.
Sweet and simple!
Which energy ETFs are you looking at?
@@ChromeForDays I don't invest in energy ETFs. I get exposure to energy with my other ETFs like SCHD,DGRO,VYM.
@@ChromeForDays I've been researching FENY, Fidelity's mirror ETF of XLE (Energy ETF). ER is .08 as opposed to XLE's ER of .10 and has a lower cost entry point. Let me know what you think too. I'm trying to break my theory that it's the better of the 2 ETFs.
QQQM is much lower ER thank you for the video
100%! The only reason I didn't show QQQM was because I filtered by ETFs with an inception date of 10+ years. I would def. look at QQQM as an alternative to QQQ.
What do you think about VONG?
In my ROTH I have 3 dedicated growth ETFs, QQQM, IWY (the top 200 growth etf) and SOXX (semiconductors)
A lot of growth!!
Well done video! Thoughts on MGK?
I like MGK. Very conservative growth.
Wonderful video like always. I'm very torn as a lot of people I've talked with say DON'T invest in dividends at my age (23) and only focus on growth as the dividends would end up hurting me more than helping me due to taxes. What are your thoughts on this? If I focus entirely on growth (VOO, QQQM, SCHG) can I still transition into dividends closer to retirement? I was thinking of putting dividends etfs in Roth IRA instead of my taxable account.
Depends on your goal. If you want to retire early and live off your dividends you need to start early. If you are not wanting to retire until after 59 1/2 then that strategy of going for only growth funds is likely VERY true. I say likely as no one can accurately predict what is going to happen.
I'm in the same boat I have half of etfs in my portfolio half divy stocks for now
Hi, you often mention SCHD and DGRO for Roth. Are these in there with your VGT and VTI?
Well it depends on your strategy and your time horizon. For example, we invest in SCHD/DGRO in our taxable account because we want to live off the dividend before the age of 59.5. We invest in mostly growth in our Roth IRA with VGT and VTI. After the age of 59.5, we plan to sell VGT and VTI and either buy a house/car etc, or buy more high dividend stocks/ETFs.
Don't let this confuse you because you could easily do the opposite with your accounts and it wouldn't be wrong. It depends on your overall strategy and goals.
but QQQ has double the expense ratio of VGT
Looking to start a simple long term (25 years) taxable ETF portfolio of VTI, QQQM, & VUG but all seem to have weight overlap due to the big seven. Would you say to much overlap or still has enough diversity? I want to have risk/growth but obviously be smart about it. Thanks Jake!
There is overlap but I don’t mind it personally. They are great growth ETFs!
Great video! What do you think of having VTI, SCHD, IJR, XLK and QQQM in a taxable account for 30 plus years?
All great ETFs. Think about how each of them serve a purpose to help you in your goals. They are just vehicles to get you to your destination. If you don't know your destination, its hard to pick the vehicle.
Will do thanks for the feedback!@@DividendGrowthInvesting
Thank you for the video!! I DCA $75 per week to VGT, AMZN, GOOG, TSLA, BRK.B, APPL, MSFT. Let’s it grow !!
Great companies!!!
Thank you.
What do you have in your wife's ROTH?
I have both for my husband and myself.
I'm wonderung if i should just have 1 or the other in each?
Hey!! We each have our own account. We don’t focus purely on dividend investing in our Roth accounts. We focus mostly on total returns. I have mostly growth in mine:
40% VGT
40% VTI
10% VXUS
10% VNQ
And my wife has mostly focused on the total us market:
80% VTI
20% VNQ
I use QQQM,SCHD,FTEC & IVV and Tesla as my only Stock in All my accounts Taxable & Tax Advantaged.
I play with TQQQ and TMF DCA with TECL also but, Only with 2nd job monies.😊
Im thinking of loading up on boil etf towards the end of May. Any thoughts on boil??
BOIL has done very poorly vs other indexes. I personally would stay away from BOIL. I don't have a crystal ball, so I have no clue what it will do in the short-term. I would much rather focus on more conservative growth indexes.
Anyone know the equivalent of VGT in the UK please or nearest ETF to it ?
We have iitu,eqqq,xlkq,gxlk mate
You mentioned you had SPYG in your little guy's portfolio. Would you mind showing that portfolio and why you came to those conclusions for others of us that are also looking to invest for our children's futures.
Hey Kirk! I will talk more about this in the future. Here is the link to his portfolio: m1.finance/kFTNvdRnF6xI
Vug seems best overall for pure growth etf
Has a lot to like!
Can you do more videos about your portfolio performance and why you won't just buy one specific broad s&p500 index ?
This is a great idea for a video. I will talk more about this in the future.
In addition to VGT and VTI, are the rest of the ETFs you mentioned also appropriate for a Roth IRA account?
Here is my Roth IRA for a ~25 year time horizon:
VTI 40%
VGT 35%
VNQ 15%
VXUS 10%
Oh, I’d love to see a vid in this!! I’m helping my 18 year old set up a Roth and have been doing HOURS of research.
VNQ is tempting, but I’m wondering if another solid area might return better, like XLV (healthcare sector).
@DividendGrowthInvesting howmany Roth irascible do you have to be honest I can only invest 50$ a month and right now I Hage about 20 assets in My m1 portfolio I am focusing on diversification and dividends like a drip method so far i have 1k invested but im wondering if I should just focus on 2 or 4 etf holdings instead
So if you already have a total market etf is there a point to adding one of these? Keep toying with adding SPYG or SCHG along side DGRO/SCHD/total market fund.
Yes because they serve different purposes. These are for growth that you will look to one day in the future rebalance into something else.
@@DividendGrowthInvesting so rebalancing with the total market and a growth etf? Or would the total market be something you keep?
@@nathanlanders9208 Well there are more ways to look at this. Think of it as one investment (DGRO/SCHD) are where you buy and hold them forever and just live off the income. Whereas with VTI and other growth ETFs like SPYG/SCHG are there to help you grow your portfolio value and in the future you will rebalance out of them aka sell them and buy something else. Maybe at that point in your life you want to buy a house or a car etc.. or you rebalance out of growth and into more income investments like SCHD/DGRO. A lot of ways to look at it. I hope this helps
Just thinking of the guy on Twitter that was way down in his portfolio because his portfolio was 100% Tesla.
Diamond hands on a whole different level
I went on the website and saw that voo and vgt overlap by 29% - Do you think its good to own both instead of vti and vgt? asking for a roth with 19 yrs to go. also, would you put schd and dgro in a roth if you dont plan on using for 19 years? or is it best to stick with the main 2 for now, again just in a roth ira? thanks Jake.
I like VTI more than VOO because you are getting the entire market. You cant really go wrong with either VOO or VTI.
If you NEVER want to sell your shares, SCHD/DGRO is better to live off the dividend income. If you plan to sell part of your portfolio, I like having VGT and VTI for growth that you will sell in the future to buy a house/car or rebalance into higher yielding dividend stocks/ETFs. You could have a combination of both (SCHD/DGRO and VTI/VGT) in both a taxable and a roth IRA if you wanted. It depends on your strategy.
@@DividendGrowthInvesting it's starting to finally make sense to me. Thanks so much Jake. Wish I had a friend like you in my life that I could talk to lol. No one I know is remotely interested in talking finances. Now I need to figure out if I can add enough achd/dgro in 19 years to make a difference. I always have a follow up it seems lol. Sorry but thank you
i only have VIG and VUG 50% each
Very simple and straight forward!
QQQ is the powerful growth ETF for most people😊😊
yeah! Best performing as well!
I have qqqm and Vug in my growth pie on m1 Roth IRA. Is that too much overlap ?
They are two different indexes. In my opinion it isnt.
@@DividendGrowthInvesting I’m watching
Your channel specifically for this kinda info. Thanks for your quick response. You’re a man of the people.
The funny thing about VGT is,
it’s a tech ETF but doesn’t have Amazon or GOOGLE or META because these three companys wasn’t considered tech company’s when VGT first started.
So in a sense VGT is out of date.
Well AMZN is consdered a consumer discretionary stock (easily debateable with aws being such a large % of their revenue). It is kinda like with Target being considered consumer discretionary and not staple like walmart. Both GOOG and META are Communication Services. All depends on how they are classified.
SPYG will cover these 😮
That’s exactly the reason to get this ETF because nearly every other ETF has those that you mentioned in this way this adds more diversification and is why I have 30% of my nest egg into this and another 30% into SCHG and another 30% into a semiconductor fund which is FSELX it’s a mutual fund with a high expense ratio but it blows all the other semiconductor funds are the water and I wish I could find a good semi conductor ETF with a low Expense ratio that has the same or better performance but I can’t find one
@@missouri6014 SMH ?
@@dividendfire855 that is not even in the same league as FSELX
Check it out I wish it was
WAIT! The more overlap the better? I thought the less the better.
With the total market, yes
Jake- great video !! I have $VGT and $VTI in my Roth account also. I found a sleeper ETF that I would like to give a shout out about , its $MOAT by VanEck !!
This ETF has beaten the S&P 500 the last five years in a row and please run a five year chart on it against $SCHD. Its not the best for dividend income ETF-- But it has a great total return and I now have a position in my HSA account along with $SCHD
Great Leadership and thank you for having the heart of a teacher, its greatly appreciated !!
Hey Sean! Thanks for taking the time to comment this! Gotta love an ETF that is called MOAT that focuses on companies with a MOAT!
VOOG vs VOO for a long term invester? I', 19 years old and planning on holding ETFs forever.
Well VOOG is the exact same as SPYG. It tracks the SP500 growth index. I would suggest learning more about how to invest based on your time horizon. I've made a few videos on my channel about it. That will help you
@@DividendGrowthInvesting true I wasn’t at that part of the video when I commented haha. Thanks!!!
I think you have too much VTI. I only have it in my individual account, and it has less weighting than anything else because it has less growth than all the ETFs…. In your Roth, I would put VGT and QQQM. I add SCHD only with a mind toward future dividend construction but this is also a deficient grower vs the rest so I don’t want too much in it right now.
I really like VTI because it is a hedge against the unknown. I have no idea what the world will look like in 20+ years. I like having VTI because I don't have to predict what will happen. I think QQQM would be a great addition to consider. For the time being, I only have VGT, VTI, VXUS, and VNQ in my Roth IRA.
I tried to use the 58% SA deal and it didn't work. Has it expired?
Yeah they no longer offer it. In a couple of weeks, I will have a coupon code you can use to get additional features on SA. Check back in about 2-3 weeks. This is completely new and no one knows about it yet :)
it's not apples to apples comparison, you should include xlk
Great video. Just started custodial account for new grandson. 1/3 each SPY QQQM SMH.
Dividends
:D
You mentioned your son’s fund or IRA. Can you do Roth for him? I’ve heard mixed opinions on this. I heard that IRS says that they need to be employees etc..
In order to fun an IRA, you have to show income on a w2. We could get creative and for example, if he did work around the house or supported a business we had, we could pay him and he could claim that against his taxes and be able to invest into a Roth IRA. That is just one example.
@@DividendGrowthInvesting A toddler that works? Won’t they smirk at this?!
@@mvmlogistics2372 I need to read up on it but I think I saw at age 12 or something.
If they are all the same, why are some more expensive than others? Thanks
Based on the issuer/company and the index.
Are these numbers net of fees ?
Yes
I go Voo QQQM and SMH
Great options!
Im sure this is a really stupid question. But if you dont plan on ever selling your shares, just using SPDR as an example, how can you profit off it with only a 1.5%dividend? So you'd have to have a million dollars worth just to make 10k a year
The average person would not be able to accomplish that - living off just the dividend from these ETFs. Most people would likely need/want to rebalance out of these ETFs into higher yielding ETFs like SCHD/VYM etc.
Do you like ONEQ?
I like VGT, VUG and SPYG a bit better. It’s not the worst though.
VLDL is clearly the most promising part of this video. 😂
My baby XLK gets no love 😂
XLK is very similar to VGT. You could pretty much go with either.
My favorite also!! XlK and XLY tag team champions
ETF distributes losses to other companies? No, it doesn't. It is just like holding all the different companies directly. If one goes down, that's a loss. The advantage to individual companies is that you can sell out of the one(s) declining and distribute the proceeds elsewhere before it goes down to 0. The advantage to a fund is you don't (and cannot) do that management and eventually the loser will be dropped from the fund, but not quickly.
Exactly!
98.2% of VGT holdings are also in VTI. Congratulations, you played yourself!
No shit, what’s your point? Nothing wrong with overweighting to growth/technology
Wow, so biased, no love for VOO in this video lol
Well I don't consider VOO a pure Growth ETF, that is why I didn't include it.
no risk no reward~
Conservative risk :)
The problem with your picks is that the dividends are way too low! There's ETF's with better dividends and safe for the long term.
The focus was never on dividends. Check out my other video where I talk about the best value ETFs
@DividendGrowthInvesting When you get dividends going, it just compounds. I only buy ETF's with decent dividends.
@DividendGrowthInvesting I want an ETF that isn't high priced and has good growth and dividends.I picked schd, spyd, sphd, and jepi. Any thoughts on those?
@@chrismcalister4428 SCHD vym DGRO vtv are some of my favorites
@DividendGrowthInvesting I own schd and agree with you on that one. Vym and vtv are too expensive. Spyd, sphd and jepi.
My p0rtfolio is plummeting significantly, I’ve lost about $320k within a few months and I'm not confident about picking st0cks anymore. Are there really no other options for me to gain from the stock market?
QQQM
QQQM would be better actually because of the low expense ratio.
Qqqm is the secret.