5 Growth ETFs That Make Millionaires (2 Are NEW) | BWB - Business With Brian

The Gist

Five specific growth ETFs complement each other without massive overlap: Vanguard S&P 500, VanEck Semiconductor, Roundhill Memory, Defiance Quantum, and Tema Space Innovators. Allocating across these funds balances broad market stability with targeted thematic exposure.

Quick Overview

An investor can build a high-growth portfolio without redundant holdings by strategically combining broad index funds with targeted thematic ETFs. Brian breaks down five distinct funds, showing how their underlying stocks overlap, which accounts suit each asset, and how to split an investment dollar across them for maximum efficiency.

Key Points: Buying the exact market peak before major crashes still yields long-term positive annual returns if left alone. Vanguard S&P 500 ETF (VOO) holds over 500 companies with an expense ratio of 0.03% and returned 15.5% annually over the last decade. VanEck Semiconductor ETF (SMH) holds 25 semiconductor companies, caps single-stock weights at 20%, and returned 34% annually over the last decade. Roundhill Memory ETF (DRAM) focuses strictly on memory chip makers like Micron, Samsung, and SK Hynix, capturing high sector growth. Defiance Quantum ETF (QTUM) holds 89 companies equally weighted around 1%, with only 12% tied directly to actual quantum computing. Tema Space Innovators ETF (NASA) holds 38 manually picked space economy companies with a 0.75% expense ratio. Brian recommends putting stable core funds like VOO and SMH in taxable brokerage accounts while holding cyclical thematic funds in tax-advantaged IRAs. A recommended portfolio split allocates 80% to core taxable funds like VOO and SMH, and 20% across DRAM, QTUM, and NASA in an IRA.

Context: Many investors struggle with portfolio overlap, accidentally buying the same mega-cap stocks across multiple funds while suffering from poor market timing. Brian examines five distinct exchange-traded funds to demonstrate how to achieve diversified growth without duplicating holdings or paying unnecessary taxes.