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

The long-awaited drop in inflation is finally here, and it's providing a much-needed boost to growth stocks.

After months of relentless selling, growth ETFs are starting to show signs of life again.

Inflation has been a major headwind for growth stocks in recent months, as investors have rotated into more defensive assets. But with inflation now cooling, the outlook for growth stocks is starting to improve.

There are a number of reasons to be bullish on growth stocks right now. First, the Federal Reserve is expected to pause its interest rate hikes in the coming months, which will provide some relief to growth companies. Second, the US economy is still growing, albeit at a slower pace than in recent years. And third, corporate earnings are expected to continue to grow in 2023, albeit at a slower pace than in recent years.

Given these factors, now could be a good time to consider adding some growth ETFs to your portfolio. Here are five ETFs that could benefit from a drop in inflation:

1. iShares Core Growth ETF (ITCG): This ETF tracks the S&P 500 Growth Index, which includes companies with high growth potential. ITCG has a low expense ratio of 0.04% and has outperformed the S&P 500 over the past five years.
2. Invesco QQQ Trust (QQQ): This ETF tracks the Nasdaq 100 Index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. QQQ has a low expense ratio of 0.20% and has outperformed the S&P 500 over the past five years.
3. Vanguard Growth ETF (VUG): This ETF tracks the CRSP US Large Cap Growth Index, which includes companies with high growth potential. VUG has a low expense ratio of 0.04% and has outperformed the S&P 500 over the past five years.
4. SPDR S&P 500 Growth ETF (SPYG): This ETF tracks the S&P 500 Growth Index, which includes companies with high growth potential. SPYG has a low expense ratio of 0.03% and has outperformed the S&P 500 over the past five years.
5. iShares Russell 1000 Growth ETF (IWF): This ETF tracks the Russell 1000 Growth Index, which includes companies with high growth potential. IWF has a low expense ratio of 0.20% and has outperformed the S&P 500 over the past five years.

Of course, no investment is without risk. Growth stocks can be more volatile than other types of stocks, so it's important to do your research before investing. But if you're looking for stocks with the potential to grow your wealth over the long term, then growth ETFs could be a good option for you.