Growth Stock ETFs Trend Higher on Hopes of a Steady Rebound

U.S. markets were higher Tuesday, with modest gains in growth stocks and related exchange traded funds.

Lifting markets higher, U.S. consumer confidence increased in June to its highest level since the Covid-19 pandemic started, which helped strengthen expectations of economic momentum for the second half of the year, Reuters reports.

“The economy is booming, the stock market is climbing so it makes perfect sense to me that consumer confidence numbers are through the roof,” Mike Zigmont, head of trading and research at Harvest Volatility Management, told Reuters.

“If there’s a strong nonfarm payrolls number this month and we start making progress on the unemployment rate, that changes the whole Fed narrative,” he added.

Market watchers are waiting on the nonfarm payroll report due Friday, which could affect the U.S. Federal Reserve’s monetary policy outlook.

Meanwhile, the S&P 500 was at a record-high level for the fourth straight session on Tuesday. The Nasdaq also touched another record high, with the technology and consumer discretionary stocks among the top gainers.

“We looked at valuation on both the growth and value side, versus just momentum, because the momentum is a little bit stalled for both sides. It’s more of a stock pickers’ market,” Jay Hatfield, CEO of Infrastructure Capital Advisors, told Reuters.

Investors who are interested in the growth style can turn to targeted strategies like the American Century Focused Dynamic Growth ETF (FDG), which is designed to invest in early-stage, high-growth companies. FDG is a high-conviction strategy designed to invest in early-stage, rapid-growth companies with a competitive advantage, along with high profitability, growth, and scalability.

Additionally, investors can look to the American Century STOXX U.S. Quality Growth ETF (NYSEArca: QGRO). QGRO’s stock selection process is broken down into high-growth stocks based on sales, earnings, cash flow, and operating income, along with stable-growth stocks based on growth, profitability, and valuation metrics.

For more news, information, and strategy, visit the Core Strategies Channel.