Top Growth ETFs For January

Despite outperforming value stocks for the better part of the last decade, 2021 could be the biggest threat to growth’s win streak in years. If November showed us anything, it’s that vaccines can send value stocks soaring. With a roll-out to the general public right around the corner, this type of rotation could very well come back. Additionally, because Democrats now have full control of the presidency and Congress, a larger stimulus package could be on the horizon coupled with tax hikes. Economic stimulus will help beat down value names more than growth stocks, while tax hikes could simultaneously eat into the bottom lines of growth stocks. Nobody knows what the long-term trend will be. However you spin it, though, it becomes evident that growth names have been the most critical stocks that have kept our world running during the pandemic and should continue to do so. 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, five Neutral, and one Unattractive.

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Attractive

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

The iShares S&P Small-Cap 600 Growth ETF IJT is the first Attractive ETF. This ETF aims to give investors long term growth through an index of small-cap U.S. growth stocks. The fund is on the smaller side and reports $5,971,276,984.95 AUM. Its fund flows have been consistently positive, with a 90-day fund flow of $4,652,151,580.00, a 30-day fund flow of $256,898,170.00, and 1-week fund flow of $81,163,845.00. Its net expense ratio of 0.18% is decent.

SPDR S&P 600 Small Cap Growth ETF (SLYG)

The SPDR S&P 600 Small Cap Growth ETF SLYG is our other Attractive ETF. This ETF has the same target goal as the iShares S&P Small-Cap 600 Growth ETF, and seeks to give investors a basket of small-cap U.S. growth stocks that show long term growth potential. The ETF is the smallest on our list with $2,128,112,642.16 AUM. It has also seen mixed fund flows. The ETF has a 90-day fund flow of $23,923,213.15, 30-day fund flow of $34,072,335.90, and 1-week fund flow of -$15,233,766.90. Its net expense ratio of 0.15 is attractive as well.

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Neutral

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

The iShares Core S&P U.S. Growth ETF IUSG is our first Neutral 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 is smaller-sized with $10,478,901,869.10 AUM, and has seen mixed fund flows. The ETF has a 90-day fund flow of $102,695,245.00, 30-day fund flow of $82,979,740.00, and 1-week fund flow of -$62,882,630.00. Its net expense ratio of .04 is very reasonable and attractive.

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

The next Neutral ETF IJK  on our list is the iShares S&P Mid-Cap 400 Growth ETF. This ETF consists of mid-cap US stocks that have a higher projected growth rate than the S&P 500. The ETF is on the smaller side with $8,132,768,582.40 AUM. While it has seen positive fund flows over the last 90-days at $20,965,517,540.00, it has seen negative fund flows over the last 30-days with -$311,290,535.00, and negative fund flows over the last week with -$27,742,980.00. The iShares S&P Mid-Cap 400 Growth ETF also has a net expense ratio of .17% which is decent.

iShares Russell 1000 Growth ETF (IWF)

The iShares Russell 1000 Growth ETF IWF  is the next Neutral ETF. This ETF aims to give investors long term growth through an index of large and mid-cap growth stocks. The fund reports $63,623,289,182.40 AUM. Its fund flows have been consistently negative with a 90-day fund flow of -$1,128,461,805.00, a 30-day fund flow of -$831,306,115.00, and 1-week fund flow of -$635,727,815.00. Its net expense ratio of 0.2% is not the worst, but there are more attractive net expense ratios from comparable ETFs.

iShares Russell Top 200 Growth ETF (IWY)

The iShares Russell 2000 Growth ETF 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 , Microsoft MSFT , Amazon AMZN , Facebook, and Alphabet. The fund is on the smaller side with $3,364,832,927.75 AUM. It has also seen consistently negative fund flows, with a 90-day fund flow of -$46,815,780.00, a 30-day fund flow of -$19,981,360.00, and 1-week fund flow of -$53,091,165.00. Its net expense ratio of 0.2% is decent, but there are better net expense ratios from similar ETFs.

SPDR S&P 400 Mid Cap Growth ETF (MDYG)

The SPDR S&P 400 Mid CapGrowth ETF MDYG is our final Neutral 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 $2,163,548,944.67 AUM. It has seen mixed fund flows, with a 90-day fund flow of $302,126,029.20, a 30-day fund flow of -$1,805,124.10, and a 1-week fund flow of -$41,561,092.80. It also has a decent net expense ratio of .15%.

Unattractive

Vanguard Mid-Cap Growth ETF (VOT)

The lone Unattractive ETF VOT  on our list is the Vanguard Mid-Cap Growth ETF. This ETF consists of mid-cap US stocks that are forecasted to show high growth potential. The ETF is on the smaller side with $10,471,111,544.10 AUM and has seen mixed fund flows. The ETF has a 90-day fund flow of $244,749,445.51, 30-day fund flow of $61,382,326.53, and 1-week fund flow of -$10,222,130.19. The ETF also has a net expense ratio of 0.07% which is quite attractive.

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