Large Cap Growth

Why invest in Large Cap Growth

Large-cap growth funds (with market capitalization over $10 billion) focus on investing in stocks that are expected to have above average growth, measured in terms of sales, cash-flows or earnings. These stocks tend to trade at higher P/E multiples than industry averages and generally outperform when the market is on an upward trend. Conversely, when the markets decline these stocks can lose value a greater pace than the market and hence are relatively risky as compared to value funds.

Key indicators to consider before investing 

Economic headwinds

 

Top 5 ETF’s by Market Capitalization

Name of the Fund Ticker Symbol /Total AUM Year of Inception Expense Ratio
  PowerShares QQQ Trust Series    QQQ   03/10/1999   0.20%
   iShares Russell 1000 Growth     IWF   05/22/2000  0.20%
 Vanguard Growth ETF    VUG  01/26/2004  0.08%
  iShares S&P 500 Growth    IVW    05/22/2000  0.18%
  Schwab US Large Cap Growth   SCHG  12/11/2009  0.04%

 

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