Should you buy a value ETF or a growth ETF?

These value stocks are often more established and have a history of paying dividends. Growth ETFs can offer higher potential returns, but they also come with greater risk. Value ETFs deliver stability and lower risk, at the cost of a much slower rate of appreciation over time. Value ETFs vs Growth ETFs: Which Should You Buy?

What is the difference between growth and value ETFs?

For an example of growth versus value performance, the largest growth ETF, the Vanguard Growth ETF (VUG), had gains of 40.22% in 2020 and 27.34% in 2021, when growth stocks were in favor. In contrast, the largest value ETF, Vanguard Value ETF (VTV), had much smaller gains of 2.26% in 2020 and 26.51% in 2021.

Are growth ETFs a good investment?

Growth ETFs, in contrast, focus on investing in fast-expanding, and often more volatile, companies in hopes of realizing above-average returns. Both of these strategies can yield market-beating returns.