Displaying items by tag: Growth

The U.S. stock market set new highs in Q3 2025, and while index funds largely outperformed, active funds were more mixed. Among the 10 largest active funds, only the JPMorgan Large Cap Growth Fund stood out, returning 9.3% and ranking in the top third of its category, while the Dodge & Cox Stock Fund lagged with just 3.2%. 

Index funds fared better, with the Vanguard Total Stock Market Index Fund delivering 8.2% and ranking highest among its peers, though the Vanguard Mid Cap Index Fund landed near the middle of its category.

Over the past three years, seven of the 10 largest active funds have outperformed their categories, led by two Capital Group funds that landed in the top decile of large-cap blend. Index funds also showed consistent strength, with S&P 500 trackers like Vanguard, Fidelity, and iShares ranking in the top quartile over that period. 

Finsum: Investors looking to capitalize on falling interest rates should look to large cap growth as they tend to be more interest rate sensitive.

Large-cap companies often have massive reach, but that scale can make sustained growth harder to come by, which is why identifying those with strong competitive advantages is key. Cadence Design Systems (CDNS), for example, has built a dominant position in semiconductor design software, achieving an 85.9% gross margin and 24% billings growth, signaling strong customer demand and profitability. 

Vertiv (VRT), a critical supplier of data center infrastructure, has demonstrated consistent organic growth and improving free cash flow margins, setting it up for long-term operational success without relying on acquisitions. Ingersoll Rand (IR), known for its industrial flow solutions, has significantly improved its efficiency and cash generation, with earnings per share growing faster than revenue, reflecting rising profitability. 

All three companies benefit from strong flywheel effects, where success breeds more success by enabling reinvestment and customer loyalty. With forward P/E ratios ranging from the mid-20s to the low-30s, each stock presents a different value proposition depending on investor preference for growth versus valuation. 

Finsum: These large-cap names offer compelling upside potential regardless of broader market uncertainty.

Inflation is cooling faster than expected, with May’s consumer price index rising just 0.1%, easing fears of a recession triggered by Trump-era tariffs and boosting investor confidence. A recent trade agreement between the U.S. and China, along with a tariff pause, has further calmed markets and revived interest in equities. 

With inflation slowing and pressure mounting on the Federal Reserve to cut rates again—potentially as early as September—investors are increasingly eyeing growth opportunities. 

Large-cap growth funds like T. Rowe Price Large Cap Growth (TRLGX), Blue Chip Growth (TRBCX), and Fidelity Contrafund (FCNTX) are drawing attention for their solid long-term returns and favorable expense ratios. These funds target high-quality, established companies positioned for above-average earnings growth, making them attractive in a more stable rate environment. 

With diversification benefits and relatively low costs, they offer a compelling way for investors to capitalize on improving macroeconomic conditions.

A shifting economic and demographic landscape is prompting financial advisors to evolve their strategies, particularly as women are set to control $34 trillion in U.S. assets by 2030. Yet, advisors currently manage a smaller share of female wealth, with many women engaging financial planners later in life. 

Remote work has also changed the profession, with more advisors and clients opting for virtual meetings, while new talent is emerging in nontraditional markets. Advisors are increasingly launching independent RIA firms and exploring complex tax strategies like delayed RMD withholding to better serve clients. 

Building strong, trusting relationships is now seen as more valuable to clients than investment advice alone, according to recent surveys. 

Finsum: As the great wealth transfer accelerates, buying and selling books of business is also gaining importance, with success hinging on transition planning, client retention, and profitability.

Growth ETFs offer a simplified way to invest in high-potential stocks without the time-consuming analysis required for picking individual winners. Key factors to consider when choosing a growth ETF include its long-term performance, sector diversification, expense ratio, and top holdings. 

The best ETFs typically maintain strong five- and ten-year returns, low costs, and broad exposure to tech-heavy but diversified portfolios. Notable examples include the iShares Russell Top 200 Growth ETF (IWY), Schwab U.S. Large-Cap Growth ETF (SCHG), and Vanguard Mega Cap Growth ETF (MGK), all boasting annualized 5-year returns near or above 18%. 

While many of these funds are concentrated in companies like Apple, Amazon, and Microsoft, they differ in fees, yield, and sector weightings. 

Finsum: Overall, growth ETFs offer an efficient path to access strong market performers with minimal effort and competitive returns.