3 Great Large Cap Growth ETFs To Pick Up On A Dip

Summary

• Large cap growth stocks are great companies for investors to own going forward.
• Buying ETFs with exposure to these stocks is an easy and simplified way to gain exposure to large cap growth stocks.
• VUG is a well rounded low expense ratio ETF with moderate risk.
• IXN provides investors with exposure to international large cap companies with moderate risk.
• SKYY is a more aggressive and higher risk option that invests in cloud computing companies.

Introduction

Growth and technology stocks have continued to outperform this year. The tech giants like Amazon (AMZN), Apple (AAPL), and Microsoft (MSFT) continue to do well despite a global pandemic. Perhaps technology stocks are more adept to fast-changing environments. It also appears that technology companies can be more robust in difficult economic environments, as the value they provide customers remains high. If you're looking for exposure to these large-cap growth and technology companies, but want to do it in a more cost-efficient or simple manner than individually picking out your favorite stocks, then the following three exchange-traded funds may be strong choices for any portfolio, especially on a pullback from current prices near all-time highs.

VUG: Vanguard Growth ETF

Let's start with what is probably the least aggressive and most basic option I will write about today. The Vanguard Growth ETF (VUG) boasts an expense ratio of just 0.04% and has consistently beat the S&P 500 over the last decade by a very substantial margin.

The ETF is passively managed and aims to track the CRSP US Large Cap Growth index. This index (and thus VUG) selects US large-cap growth stocks based on the following six factors:

• Expected long-term EPS growth
• Expected short-term EPS growth
• 3-year historical EPS growth
• 3-year historical sales growth
• Return on assets ratio
• Current investment-to-assets ratio

VUG currently holds the large-cap growth companies one would probably expect. All the big technology names make up the top few holdings, while more classic companies like Home Depot (HD) and Visa (V) make the top 10. Other notable holdings that don't quite make up the top 10 holdings include Costco (COST), McDonald's (MCD), Comcast (CMCSA), Adobe (ADBE), and others.

Source: ETF.com VUG Overview

Overall, VUG is a well-rounded, low-expense growth ETF. This ETF will give investors exposure to the largest and

Analyst’s Disclosure:I am/we are long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long AAPL via options spreads and may take a long or short position in any other stock mentioned in this article. I have no position in the ETFs mentioned and no plan to initiate any position in the ETFs mentioned.