U.S. Large-Cap Growth Equity

U.S. large-cap growth equity funds and ETFs primarily invest in large companies... U.S. large-cap growth equity funds and ETFs primarily invest in large companies that are projected to grow at a faster rate than other large cap stocks. Large-cap stocks are typically defined as those in the top 70% of market capitalization in the U.S. Another defining feature of large-cap stocks is that they usually have a market capitalization greater than US$10 billion. U.S. large-cap growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks of similar market capitalizations. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. On one hand, U.S. large-cap growth equity funds and ETFs can be good investments if their holdings manage to meet or exceed forecasted revenue and earnings growth. On the other hand, funds and ETFs with holdings that fail to meet estimated future revenue or earnings targets may significantly decline in value. U.S. large-cap growth funds and ETFs typically have significant exposure to the information technology, healthcare, and consumer sectors. Some may also own financial services companies. U.S. large-cap growth funds and ETFs are purchased by investors primarily for their capital gains potential. While some do offer dividend payouts, these yields tend to be low. They are usually appropriate for slightly aggressive investors willing to take on more risk, compared to traditional conservative investors, in search of higher returns. Last Updated: 12/20/2024 View more View less

U.S. large-cap growth equity funds and ETFs primarily invest in large companies that are projected to grow at a faster rate than other large cap stocks. Large-cap stocks are typically defined... U.S. large-cap growth equity funds and ETFs primarily invest in large companies that are projected to grow at a faster rate than other large cap stocks. Large-cap stocks are typically defined as those in the top 70% of market capitalization in the U.S. Another defining feature of large-cap stocks is that they usually have a market capitalization greater than US$10 billion. U.S. large-cap growth companies tend to trade at higher valuations (price-earnings ratios, for example), than so-called value stocks of similar market capitalizations. This is because they are typically valued more for their potential years from now, rather than their current revenue or earnings. On one hand, U.S. large-cap growth equity funds and ETFs can be good investments if their holdings manage to meet or exceed forecasted revenue and earnings growth. On the other hand, funds and ETFs with holdings that fail to meet estimated future revenue or earnings targets may significantly decline in value. U.S. large-cap growth funds and ETFs typically have significant exposure to the information technology, healthcare, and consumer sectors. Some may also own financial services companies. U.S. large-cap growth funds and ETFs are purchased by investors primarily for their capital gains potential. While some do offer dividend payouts, these yields tend to be low. They are usually appropriate for slightly aggressive investors willing to take on more risk, compared to traditional conservative investors, in search of higher returns. Last Updated: 12/20/2024 View more View less