Best Growth ETFs for Q1 2022

Growth exchange-traded funds (ETFs) are one of two broad categories of ETFs, the other one being value ETFs. Growth ETFs are designed to invest in a basket of stocks whose underlying companies have the potential for rapid growth, as opposed to stocks whose prices are relatively undervalued. Growth companies in these funds include Microsoft Corp. $Microsoft(MSFT.US)$ (MSFT), DocuSign Inc. $DocuSign(DOCU.US)$ (DOCU), and Micron Technology Inc. $Micron Technology(MU.US)$ (MU), among others

These ETFs can provide above-average returns, but they also carry more risk because fast growth tends to be accompanied by higher volatility, especially during times of economic weakness. These ETFs may not be the best vehicles for investors looking for regular investment income. That’s because many growth companies reinvest their earnings into future growth instead of paying dividends to their shareholders.