The ETFs listed above provide you with a simple and straightforward way to get exposure to growth stocks. Here’s a simple step-by-step guide to buying growth ETFs:
Open a Brokerage Account. A brokerage account is your gateway to the stock market. The type of account you choose depends on your financial goals. If you’re buying growth ETFs to invest for retirement, choose an individual retirement account (IRA) , which offers valuable tax benefits but limits your annual contributions. For more near-term goals, go with a taxable brokerage account.
Research Growth ETFs. Once you’ve opened a brokerage account, research the ETFs most likely to help you reach your goals. Most growth ETFs track the performance of growth stock indexes, and are priced very competitively. But some are active ETFs, where fund managers pick growth stocks and frequently rebalance the fund’s portfolio in an attempt to beat growth indexes. This is a more expensive approach, but it can offer greater returns.
Buy Growth ETFs. You’ll need to transfer cash into your brokerage account in order to buy shares of growth ETFs. Search for your chosen ETF by ticker symbol. Some brokers make it easy to buy shares right in the ticker research section. If not, you’ll need to go to the trade section of the brokerage and enter the ETF’s ticker. Enter the number of shares you want to buy—in most cases you enter a market order, meaning your purchase request goes through at the current price of the ETF instead of holding out for a particular price. Use a limit order to get growth ETF shares at a specified price.
Set Up a Purchase Plan. Investing isn’t a one-and-done thing. You should consider making a plan to buy shares of growth ETFs or other investments regularly to help you reach your goals. Luckily, most brokerages allow you to set up a purchase plan.
The author(s) held no positions in the securities discussed in the post at the original time of publication.
