From 2023 to the end of 2025, portfolios that were heavily invested in growth stocks, especially megacap, tech, and artificial intelligence (AI)-focused growth stocks, probably outperformed the major indexes like the S&P 500 (SNPINDEX: ^GSPC). But 2026 is different.
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Tech-heavy sectors, like tech and communications, have lost value year to date. And every “Magnificent Seven” stock is down — from Nvidia to Alphabet, Apple, Microsoft, Amazon, Meta Platforms, and Tesla.
So it’s unsurprising that growth-heavy exchange-traded funds (ETFs) are also under pressure.
Here are three ETFs that stand out as top buys for long-term-focused investors.
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The Vanguard Growth ETF (NYSEMKT: VUG) has “foundational holding” written all over it. Its ultra-low-cost 0.04% expense ratio is a passive investor’s dream come true.
The fund has historically performed similar to the Nasdaq-100, but it has a few key differences. The Nasdaq-100 invests in the largest non-financial companies listed on the Nasdaq stock exchange — meaning it won’t invest in growth stocks like Oracle that are listed on the New York Stock Exchange. However, that also means the Nasdaq-100 is going to include a lot of megacap stocks that aren’t necessarily growth stocks.
For example, Walmart is the ninth-largest Nasdaq-100 holding, Costco Wholesale is No. 12, and PepsiCo is No. 21. These are consumer staples stocks with single-digit to low-double-digit earnings growth rates — not high-octane AI growth stocks. Vanguard splits most large-cap stocks into either its growth ETF or the Vanguard Value ETF (NYSEMKT: VTV) — electing to include Costco in the Growth ETF but putting Walmart and Pepsi in the Value ETF.
Down 6.1% year to date, the Vanguard Growth ETF is a solid buy for investors looking for a low-cost way to get exposure to a…
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