What is a growth ETF?

A growth ETF invests in companies that are expected to grow revenue or earnings faster than the broader market. These ETFs often tilt toward sectors like technology and consumer discretionary, though the exact mix depends on the index methodology.

Growth stocks can outperform for long stretches, but they can also be more sensitive to interest rates and market sentiment. When rates rise or risk appetite falls, growth-heavy ETFs can experience sharper drawdowns.

If you're choosing a growth ETF, check how "growth" is defined (sales growth, earnings growth, valuation screens), sector concentration, and overlap with what you already own. Many broad market ETFs already have meaningful growth exposure.