Top Growth ETFs For December

After crushing their value counterparts for years and years, growth stocks have lagged behind since November following positive vaccine data from Pfizer PFE and BioNTech, Moderna, and AstraZeneca and Oxford University. Although Pfizer and BioNTech have reportedly run into some supply chain issues, investors do not appear to be overly concerned. As 2020 comes to a close and we approach 2021, there is great uncertainty about what will eventually win out- growth or value. While the initial vaccine rally showed a sharp rotation out of growth and into value, it has somewhat stabilized since. Nobody truly knows what the long-term trend will be. Investors seem to be euphoric that COVID appears to have a light at the end of the tunnel. But what will happen if there are more issues than expected with vaccine safety and distribution? No matter how you look at it though, growth names have been at the forefront of this new COVID world, and have kept society not only afloat, but growing and transitioning to this new normal. One of the best ways to gain broad exposure to growth stocks without asset specific risks is through investing in growth ETFs. For hungry investors looking for growth and returns, Q.ai’s deep learning algorithms have identified the Top Growth ETFs based on fund flows over the last 90-days, 30-days, and 7-days. This includes two Attractive, two Neutral, two Unattractive, and two Top Shorts.

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Attractive

iShares Core S&P U.S. Growth ETF (IUSG)

The iShares Core S&P U.S. Growth ETF IUSG is our first Attractive ETF. This ETF is composed of large and mid-cap growth stocks whose earnings are expected to grow at an above-average rate relative to the market. The ETF has $10,031,017,350.00 AUM, and has seen mixed negative fund flows. The ETF has a 90-day fund flow of -$70,862,685.00, 30-day fund flow of $25,997,925.00, and 1-week fund flow of 0. Its net expense ratio of .04 is very reasonable and attractive.

iShares Russell 1000 Growth ETF (IWF)

The iShares Russell 1000 Growth ETF IWF is the next first Attractive ETF. This ETF aims to give investors long term growth through an index of large and mid-cap growth stocks. The fund reports $62,364,562,384.40 AUM. Its fund flows are mixed, with a 90-day fund flow of -$1,030,773,410.00, a 30-day fund flow of $216,316,375.00, and 1-week fund flow of -$108,589,590.00. Its net expense ratio of 0.2% is not the worst, but there are more attractive net expense ratios from comparable ETFs.

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Neutral

iShares S&P Mid-Cap 400 Growth ETF (IJK)

The first Neutral ETF on our list is the iShares S&P Mid-Cap 400 Growth ETF IJK . This ETF consists of mid-cap US stocks that grow at an above average rate compared to the S&P 500. The ETF is on the smaller side with $7,579,167,655.20 AUM. While it has seen positive fund flows over the last 90-days at $21,224,380,015.00, it has seen negative fund flows over the last 30-days with -$3,413,640.00, and negative fund flows over the last week with -$66,605.00. The iShares S&P Mid-Cap 400 Growth ETF also has a net expense ratio of .17% which is decent.

iShares Russell Top 200 Growth ETF (IWY)

The iShares Russell 2000 Growth ETF IWY is our next Neutral ETF. This ETF tracks an index made up of the top large-cap growth stocks in the US such as Apple AAPL , Microsof MSFT t, Amazo AMZN n, Facebook, and Alphabet. The fund is on the smaller side with $3,308,806,149.70 AUM. Its fund flows over the long-term and short-term have been mixed, with a 90-day fund flow of $76,138,335.00, a 30-day fund flow of -$69,717,430.00, and 1-week fund flow of -$12,675,610.00. Its net expense ratio of 0.2% is decent, but there are better net expense ratios from similar ETFs.

Unattractive

SPDR S&P 400 Mid CapGrowth ETF (MDYG)

The SPDR S&P 400 Mid CapGrowth ETF MDYG is our first Unattractive ETF. This ETF tracks an index of mid-cap US stocks, and focuses on stocks showing sales growth, earnings change to price ratio, and momentum. The ETF is one of the smallest on our list with only $1,939,944,588.53 AUM. It has seen mixed fund flows, with a 90-day fund flow of -$65,291,269.80, a 30-day fund flow of $316,593,275.65, and a 1-week fund flow of 0. It also has a decent net expense ratio of .15%.

iShares Russell 2000 Growth ETF (IWO)

The iShares Russell 2000 Growth ETF IWO is the next first Unattractive ETF. This ETF aims to give investors long term growth through an index of small-cap growth stocks that trade on the Russell 2000 index. The fund reports $10,924,381,778.40 AUM. Its fund flows are mixed, with a 90-day fund flow of $181,512,115.00, a 30-day fund flow of $83,437,280.00, and 1-week fund flow of -$13,176,455.00. Its net expense ratio of 0.24% is not the worst, but there are more attractive net expense ratios from comparable ETFs.

Top Short

iShares S&P Small-Cap 600 Growth ETF (IJT)

The iShares S&P Small-Cap 600 Growth ETF IJT is the first Top Short on the list. This ETF aims to give investors long term growth through an index of small-cap U.S. growth stocks. The fund reports $4,921,022,683.95. Its fund flows have been consistently positive, with a 90-day fund flow of $4,148,798,865.00, a 30-day fund flow of $7,595,105.00, and 1-week fund flow of $15,850,510.00. Its net expense ratio of 0.18% is decent.

Schwab U.S. Large-Cap Growth ETF (SCHG)

The Schwab U.S. Large-Cap Growth ETF SCHG is the final Top Short for the month. This ETF aims to give investors exposure to a select amount of stocks from a list of 750 of the largest U.S. companies by market cap that exhibit growth characteristics. The fund reports $13,024,991,394.94 AUM. Its fund flows are mixed, with a 90-day fund flow of -$1,708,300,833.00, a 30-day fund flow of $44,130,034.00, and 1-week fund flow of -$12,417,867.60. Its net expense ratio of 0.04% is very attractive.

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