Prediction: This Growth ETF Will Crush the S&P 500 Over the Next 10 Years

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  • Growth ETFs are built for above-average returns, helping bushed the marketplace implicit time.

  • As tech stocks proceed to surge, maturation funds could beryllium connected the verge of lucrative returns.

  • Staying invested for the agelong word is key, particularly if we look volatility successful the coming years.

  • 10 stocks we similar amended than Schwab Strategic Trust - Schwab U.s. Large-Cap Growth ETF ›

The close concern tin physique life-changing wealth, and exchange-traded funds (ETFs) are low-maintenance investments that tin battalion a punch.

Growth ETFs are designed to gain above-average returns, maximizing your net with minimal effort connected your part. While cipher tin accidental for definite what the marketplace volition bash successful the coming years, 1 powerhouse ETF could importantly outperform the S&P 500 (SNPINDEX: ^GSPC) implicit the adjacent decade.

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Image source: Getty Images.

The Schwab U.S. Large-Cap Growth ETF (NYSEMKT: SCHG) is simply a almighty maturation money with a slew of advantages. It contains astir 200 large-cap stocks that grounds maturation characteristics, positioning them for above-average returns.

Large-cap stocks thin to beryllium much unchangeable than their smaller counterparts, and galore of the companies successful this ETF are industry-leading giants with a agelong past of not lone surviving downturns, but thriving implicit time.

Over the past 10 years, the Schwab U.S. Large-Cap Growth ETF has earned full returns of astir 441%, arsenic of this writing, compared to astir 270% for the S&P 500. In different words, if you'd invested $10,000 a decennary ago, you'd person astir $54,000 versus $37,000, respectively.

SCHG Chart

SCHG information by YCharts

Another vantage of this money is its rock-bottom disbursal ratio of 0.04%, meaning you'll wage $4 per twelvemonth successful fees for each $10,000 invested. That's a fraction of the interest galore different maturation funds charge, which could perchance prevention you thousands of dollars implicit time.

Past show isn't needfully indicative of aboriginal returns, truthful though this money has importantly outperformed the marketplace previously, that doesn't warrant it volition proceed to bash so.

That said, this ETF's dense tilt toward the tech manufacture could assistance propel it guardant successful the years to come. Roughly fractional of the money is allocated to tech stocks, and apical holdings see large names specified arsenic Nvidia, Apple, and Microsoft.

Much of this fund's maturation has travel successful the past 5 years oregon so, arsenic tech stocks -- peculiarly those progressive successful the maturation of artificial quality (AI) -- person surged. With experts predicting that AI is poised for semipermanent gains, this ETF could beryllium connected the verge of important growth.

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