The search for higher returns often leads investors with the willingness to accept a high risk-return trade off towards Growth ETFs. This category of instruments has a strong positive correlation with market movements and provides good returns during a market upswing. Such performance is achieved by investing in securities issued by companies with strong growth potential and in IPOs which are often resold quickly at a handsome profit. Many Growth ETFs may also invest in options to achieve their goal of high returns.
Below are the three best performing Growth ETfs year to date.
Guggenheim Ocean Tomo Growth Index (OTR) – seeks investment results that replicate the Ocean Tomo 300 (R) Patent Growth Index. This index is non diversifed and included without limit on market capitilization.
This ETF has a 0.65% expense ratio and a current yield 1.26%. This ETF is up 4.87% YTD.
Powershares QQQ Trust SRS 1 (QQQ) – this etf seeks to replicate 100% of the returns before fees of the Nasdaq 100 Index. This ETF has a below average expense ratio of 0.20%. The top holding in this ETF are AAple, Microsoft and Oracle. This ETF is up 2.1% YTD
Rydex S&P 500 Pure Growth (RPG)- seeks to replicate the performance of the S&P 500 Pure Growth Index. This ETF has a below category average expense ratio of 0.35%. The top holdings in this ETF are Akami, Priceline and Chipotle. This ETF is up 1.9% YTD.
