Growth chasers have found their second wind. After months of lagging broader indexes, US growth stocks are drawing fresh attention as investors reassess earnings power, valuations, and ETF performance. Now comes the tougher call: which corner of growth has the most room left to run?
Re-engagement signal: Growth stocks trailed for months, then started showing signs that the selling had gone too far. The Vanguard S&P 500 Growth ETF holds artificial-intelligence leaders including Nvidia, Micron Technology, Microsoft, and Alphabet, along with payments names and health care innovators. Barron's noted that analysts expect companies in that growth ETF to deliver 18% annual earnings growth from the end of 2026 through 2028, twice the equal-weighted S&P 500 expectation.
- The growth ETF trades at just over 21 times next-12-month earnings, only five points above the equal-weighted S&P 500.
- RBC strategist Lori Calvasina wrote that “the earnings backdrop favors Tech and the mega cap growth trade broadly,” supporting renewed interest.
ETFs Show Where Momentum Is Moving
ETF flows and recent performance point to broader demand for growth exposure. Actively managed funds targeting internet, disruption, and innovation themes are seeing particular interest. Morningstar found that five of August 2026's 10 top-performing US equity ETFs were large-growth funds, with the category gaining 3.56% on average during the month.
- Large-cap growth ETFs rallied in August, with Baron First Principles ETF up 15.4% and Fidelity Disruptors ETF up 7.16%, versus the category’s 3.56% average.
- Mid-cap growth fund ARK Next Generation Internet ETF gained 15.04% in August, well ahead of the category’s 1.91% average.
Stock picker's warning: The biggest growth-stock winners still come with a catch. Momentum can disappear long before the earnings story does. NerdWallet’s September 2026 ranking put Sandisk Corp first for one-year performance, with AXT Inc and CIENA Corp close behind. So while that makes selecting individual winners tempting, ETFs offer a way to spread the risk when market leaders lose steam. Growth is back on the menu, but investors still need to be picky about what they order.