Investors can also target growth-specific index ETFs, like the iShares Russell 1000 Growth ETF (NYSEArca: IWF), iShares S&P 500 Growth ETF (NYSEArca: IVW) and Vanguard Growth ETF (NYSEArca: VUG). IWF takes growth picks from the large-cap universe of Russell 1000 stocks. IVW highlights growth names from the S&P 500. VUG selects picks from the largest 85th percentile of the U.S. stocks. All three ETFs overweight tech and discretionary names as well.
Investors can also capture mid cap growth stocks through the iShares Russell Mid-Cap Growth ETF (NYSEArca: IWP), Vanguard Mid-Cap Growth (NYSEArca: VOT), iShares S&P Mid-Cap 400 Growth ETF (NYSEArca: IJK) and Guggenheim S&P Midcap 400 Pure Growth ETF (NYSEArca: RFG). These funds also include heavy positions in consumer cyclical, industrials and technology sectors.
Lastly, for smaller company exposure with a growth style tilt, the iShares Russell 2000 Growth ETF (NYSEArca: IWO), Vanguard Small-Cap Growth ETF (NYSEArca: VBK) and iShares S&P Small-Cap 600 Growth ETF (NYSEArca: IJT) focus on the small-capitalization growth asset class category.
In contrast, defensive areas, such as healthcare consumer staples and utility stocks, are less risky and typically generate higher yields than economically sensitive growth stocks. However, these defensive sectors look less attractive in a rising rate environment as less-risky government bonds come with higher yields.
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Max Chen contributed to this article.