Not so much. The performance of these ETFs over the past four years has been 170%, 91.5%, 109.6%, and 89.59%, respectively.
Why? Well, to put it simply, the internet becomes more ubiquitous everyday and the companies that are deriving a majority of the revenues from it are growing right along with it. The time spent connected to the internet and devices among Americans rises every year and that time is subsequently monetized by innovative companies that enhance the internet in one way or another.
All of this ties back into those tech giants. Companies like LinkedIn, Netflix, TripAdvisor, Expedia, Groupon, and Pandora come along to service internet consumers but only on the backs of the infrastructure provided by the tech giants who own the internet economy. The former CEO of Symantec told the WSJ, “You are seeing ecosystems built around all of these companies now…There is a platform shift happening.”
So if internet-based companies are the strongest performing tech-sector and tech giants have control of their business infrastructure the trend of large-cap growth ETFs outpacing value may continue.
ETF investors can look to the iShares S&P 500 Growth ETF (NYSEarca: IVW) to capture large-cap growth stock exposure. The ETF is up 7.2% this year.
