Diversify your portfoio with growth ETFs

Article Excerpt

Most successful investors hold a mix of stocks (or the ETFs that hold them)—and one key component of a well-diversified portfolio are growth stocks. Note that it’s very easy to confuse growth stocks with momentum stocks. Like growth stocks, momentum stocks often move up faster than market averages. But momentum stocks attract a different kind of investor. Momentum investors aim to profit from short-term trades, while growth-stock investors are in for the long haul. Here’s a look at three ETFs that focus on growth stocks. (See the Supplement on page 100 for more on growth stocks vs. value stocks.) VANGUARD MID-CAP GROWTH ETF $190.67 (New York symbol VOT; TSINetwork ETF Rating: Aggressive; Market cap: $20.05 billion) invests in medium-sized, U.S. firms that are expected to grow their sales and profits faster than the average mid-sized company. Technology companies make up 34% of the portfolio, followed by Healthcare (17%), Industrials (14%), Consumer Cyclical (12%), Financials (11%), and Energy (7%). The fund holds 178 companies; the top 10…