5 Growth ETFs to Buy as Inflation Drops to a 3-Year Low

Zacks09-12

Inflation in the United States rose at the slowest pace in three years in August, raising confidence that the Fed will cut interest rates next week. Following the CPI report, investors’ bets on a 25-...

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Following the CPI report, investors’ bets on a 25-...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-growth-etfs-buy-inflation-143300147.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>5 Growth ETFs to Buy as Inflation Drops to a 3-Year Low</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n5 Growth ETFs to Buy as Inflation Drops to a 3-Year Low\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-12 22:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/5-growth-etfs-buy-inflation-143300147.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Inflation in the United States rose at the slowest pace in three years in August, raising confidence that the Fed will cut interest rates next week. Following the CPI report, investors’ bets on a 25-...</p>\n\n<a href=\"https://finance.yahoo.com/news/5-growth-etfs-buy-inflation-143300147.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0345774391.USD","symbol_name":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/5-growth-etfs-buy-inflation-143300147.html","article_id":"2466961200","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/WNXCM0TpKWARY0ezM0UHCg--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/0a2b35fdb9e7a7d203b64fc3a6ae32db"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2466961200","pubTimestamp":1726151580,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Growth investing focuses on capital appreciation rather than annual income or dividends. It is a stock-buying strategy that aims to profit from com","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0345774391.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) ACC","BK4534":"瑞士信贷持仓","SG9999014021.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) ACC","VOO":"Vanguard标普500ETF","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","SSO":"两倍做多标普500ETF","IVW":"标普500成长股指数ETF-iShares","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","BK4559":"巴菲特持仓","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","FDN":"First Trust Dow Jones Internet I","SPXU":"三倍做空标普500ETF","LU0130517989.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"R\" INC","BK4550":"红杉资本持仓","VUG":"成长股指数ETF-Vanguard MSCI","SG9999014039.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) INC","SG9999014005.SGD":"United Global Durable Equities Fund Acc SGD","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","SG9999014013.SGD":"United Global Durable Equities Fund Dis SGD","LU0345774631.USD":"NINETY ONE GSF AMERICAN FRANCHISE \"A\" (USD) INC","SPY":"标普500ETF","OEF":"标普100指数ETF-iShares","SCHG":"Schwab U.S. Large -Cap Growth ET","IWF":"罗素1000成长指数ETF-iShares","QQQ":"纳指100ETF","SDS":"两倍做空标普500ETF","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU0106831901.USD":"贝莱德世界金融基金A2","SCHW":"嘉信理财","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","OEX":"标普100",".SPX":"S&P 500 Index","BK4127":"投资银行业与经纪业","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","SH":"标普500反向ETF","LU0477156953.USD":"HARRIS ASSOCIATES US VALUE EQUITY \"RE\" (USD) ACC","IVV":"标普500指数ETF"},"translate_title":"随着通胀降至三年低点，值得买入的5只成长型ETF","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"QQQ":1,"VUG":1,"SCHG":1,"IWF":1,"IVW":1,"FDN":0.9,"VOO":0.9,"SCHW":0.9,"SPY":0.9,"US2Y.BOND":0.75,"US10Y.BOND":0.75,"US12M.BOND":0.75,"US30Y.BOND":0.75,"US3Y.BOND":0.75,"US5Y.BOND":0.75,"US6M.BOND":0.75,"US7Y.BOND":0.75,"SDS":0.6,"US912797GL51.BOND":0.6,"SSO":0.6,"US912797GW17.BOND":0.6,"SPXU":0.6,"SH":0.6,"US912797HE00.BOND":0.6,"ESmain":0.6,"IVV":0.6,"OEF":0.6,"OEX":0.6,".SPX":0.6},"content_text":"Inflation in the United States rose at the slowest pace in three years in August, raising confidence that the Fed will cut interest rates next week. Following the CPI report, investors’ bets on a 25-bps rate cut rose to 85% from 66% a prior day, as measured by the CME Fed Watch Tool.An interest rate cut by the Fed would boost demand in the world's largest economy. Investors seeking to capitalize on this trend could invest in growth ETFs. While there are many ETFs in the space targeting the growth segment, we have highlighted the five most popular options. These have a Zacks ETF Rank #2 (Buy) each, suggesting their continued outperformance. These include Invesco QQQ QQQ, Vanguard Growth ETF VUG, iShares Russell 1000 Growth ETF IWF, iShares S&P 500 Growth ETF IVW and Schwab U.S. Large-Cap Growth ETF SCHG.Low rates are generally favorable for growth stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets. Growth stocks, with their potential for high returns, become more appealing to investors in this environment, driving up demand and, consequently, their prices (read: Sector ETFs Set to Explode as Fed Rate Cut Bets Gain Steam).\nBehind the Inflation Numbers\nThe Consumer Price Index rose 2.5% year over year in August, down from the annual rise of 2.9% in July. This is the fifth straight annual drop and marks the slowest pace of annual growth since February 2021. Most of the decline came on the back of falling gasoline and used cars and truck prices.Average gas prices dropped 0.6% from the prior month and 10.6% from the year-ago period, while used cars fell 1% last month. On a year-over-year basis, used car prices tumbled 10.4%. Healthcare costs also fell for the second straight month. Meanwhile, grocery food prices were unchanged as increases in the costs of meats, fish, eggs and dairy products were offset by decreases in nonalcoholic beverages, fruits and vegetables. Over the past year, grocery prices inched up just 0.9%, similar to the pace of pre-pandemic food inflation.However, shelter prices, which make up about one-third of the CPI weighting, climbed 0.5% — the most since the start of the year — and marking the second consecutive month of acceleration. The cost of household insurance shot up 0.8% after being unchanged in July. Airline fares rebounded 3.9% after declining 1.6% in July. The cost of lodgings, including hotel and motel rooms, rose 2% after rising 0.2% in July. The so-called core inflation, which strips out volatile components such as food and energy prices, increased 3.2% year over year. On a month-on-month basis, core inflation increased 0.3%, a slight pickup from July’s 0.2% increase.\nWhy Growth?\nGrowth investing focuses on capital appreciation rather than annual income or dividends. It is a stock-buying strategy that aims to profit from companies that grow at above-average rates compared to their industry or the market. This is a more active attempt versus the value to build up the portfolio and generate more return on capital investment.Growth funds generally tend to outperform during an uptrend. However, these funds offer exposure to stocks with growth characteristics that have comparatively higher P/B, P/S and P/E ratios and exhibit a higher degree of volatility, especially compared to value stocks.\nETFs to Buy\nInvesco QQQ (QQQ)Invesco QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. It is one of the largest and most popular ETFs in the large-cap space, with an AUM of $276.6 billion and an average daily volume of 35 million shares. Invesco QQQ charges investors 20 bps in annual fees. Vanguard Growth ETF (VUG) Vanguard Growth ETF offers exposure to the growth segment of large-cap equities and follows the CRSP US Large Cap Growth Index. Vanguard Growth ETF holds 188 stocks in its basket, with key holdings in the technology sector at 59.8% and consumer discretionary at 16.8%. Vanguard Growth ETF has AUM of $131.9 billion and an average daily volume of 1 million shares. It charges 4 bps in fees per year (read: 5 Technology ETFs at the Forefront of the August Rebound).iShares Russell 1000 Growth ETF (IWF) iShares Russell 1000 Growth ETF provides exposure to large and mid-capitalization U.S. equities that exhibit growth characteristics by tracking the Russell 1000 Growth Index. It holds 394 securities in its basket with a tilt toward the information technology sector, while consumer discretionary and communication have double-digit exposure each. With AUM of $93 million, iShares Russell 1000 Growth ETF trades in a heavy volume of around 1.2 million shares a day on average and charges 19 bps in annual fees. iShares S&P 500 Growth ETF (IVW)iShares S&P 500 Growth ETF tracks the S&P 500 Growth Index and holds 231 stocks in its basket. It is heavily concentrated on the top three firms with double-digit exposure. iShares S&P 500 Growth ETF is skewed toward information technology at 49.3%, while communication and consumer discretionary round off the next two spots with double-digit exposure each. iShares S&P 500 Growth ETF charges 18 bps in annual fees and has amassed $51.1 billion in its asset base. The fund trades in an average daily volume of 3 million shares.Schwab U.S. Large-Cap Growth ETF (SCHG)With AUM of $30.7 billion, Schwab U.S. Large-Cap Growth ETF follows the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. It holds 251 stocks in its basket, with a large concentration on the top three firms. From a sector look, information technology takes the top spot at 48.7% share, while communication services, consumer discretionary and health care receive double-digit exposure each in the portfolio. Schwab U.S. Large-Cap Growth ETF charges 4 bps in annual fees and sees an average volume of around 1.5 million shares a day.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nInvesco QQQ (QQQ): ETF Research Reports\niShares Russell 1000 Growth ETF (IWF): ETF Research Reports\nVanguard Growth ETF (VUG): ETF Research Reports\nSchwab U.S. Large-Cap Growth ETF (SCHG): ETF Research Reports\niShares S&P 500 Growth ETF (IVW): ETF Research Reports\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"economic","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2466961200"}