Large-cap growth stocks include many of the market’s most innovative and resilient companies, and tilt toward mega-cap tech and consumer names has helped fuel their long-term performance. U.S. large-cap growth ETFs provide concentrated exposure to the companies that have played a major role in shaping the modern economy.

This focus has benefited QQQ over the past decade, supported by the outperformance of mega-cap stocks and strong results from the technology sector. While no strategy works in every market environment, growth companies, often characterized by rapid earnings expansion and reinvestment in new technologies, have historically contributed to long-term capital appreciation, even with the higher volatility that can accompany them.

For many investors, large-cap growth strategies like QQQ serve as a core allocation, offering access to companies driving economic transformation from cloud computing to artificial intelligence. 

Finsum: Although growth stocks can be more sensitive to interest rates and market cycles, they remain key components of portfolios aiming to capture the momentum and innovation.