Best Growth ETFs for 2027

Here’s our look at some of the best growth ETFs available to Australian investors heading into 2027.

Growth ETFs are generally designed for investors who are more interested in building wealth over the long term than generating immediate income. They can provide exposure to some of the world’s largest and fastest-growing companies across technology, healthcare, consumer products, financial services and other industries.

What Is a Growth ETF?

A growth ETF is an Exchange Traded Fund designed primarily to provide capital growth over time. Rather than focusing heavily on dividend income, growth ETFs generally invest in businesses expected to increase revenue, profits and value over the long term.

Growth ETFs may appeal to investors seeking:

• Long-term capital appreciation
• Exposure to global companies
• Technology and innovation
• International diversification
• A simple way to build a long-term investment portfolio

The S&P 500 includes major businesses across:

• Technology
• Healthcare
• Financials
• Industrials
• Consumer products
• Communications

At just 0.04% per annum, IVV is one of the lowest-cost ways for Australian investors to access the US sharemarket.

The major consideration heading into 2027 is valuation. US shares, particularly the largest technology companies, have performed extremely strongly in recent years. That does not necessarily mean future returns will be poor, but investors should recognise that some very optimistic growth expectations are already reflected in share prices.

Best for: Investors seeking low-cost exposure to America’s largest companies.

• Strong profitability
• Financial strength
• Earnings quality
• Sustainable business performance

This provides exposure to companies that may be better positioned to generate sustainable long-term growth. Quality investing may be particularly useful during periods when market performance broadens beyond the handful of mega-cap technology companies that have dominated recent years.

Best for: Investors seeking global growth with an emphasis on financially strong and profitable businesses.

How to Build a Growth ETF Portfolio

Growth investors can combine broad market ETFs with more concentrated growth exposures.

Core global exposure: VGS.ASX:Provides broad international diversification.

US exposure: IVV.ASX: Provides low-cost exposure to America’s largest companies.

Higher-growth exposure: NDQ.ASX: Provides additional exposure to technology, AI and innovation.

Quality exposure QLTY.ASX: Adds a quality-focused investment approach.

Example Growth ETF Portfolio

A diversified long-term growth portfolio might look like:

• 50% VGS
• 30% IVV
• 20% NDQ

This gives the portfolio broad global exposure while deliberately increasing its allocation to the US and technology.

A slightly more aggressive portfolio could look like:

• 45% VGS
• 25% NDQ
• 20% IVV
• 10% QLTY

There is some overlap between these ETFs, particularly among large US technology companies. That is not necessarily a problem if the overlap is deliberate and understood.

Comparing Growth ETFs

ETF	Focus	Growth Potential	Diversification	Risk	Best Use
VGS	Global developed markets	⭐⭐⭐⭐⭐	⭐⭐⭐⭐⭐	Medium	Core global holding
IVV	S&P 500	⭐⭐⭐⭐⭐	⭐⭐⭐⭐	Medium	Core US holding
NDQ	Nasdaq-100	⭐⭐⭐⭐⭐⭐	⭐⭐⭐	Higher	Growth enhancer
QLTY	Global quality companies	⭐⭐⭐⭐⭐	⭐⭐⭐⭐	Medium–Higher	Quality growth

Why 2027 Could Be Different

Technology and artificial intelligence remain major long-term investment themes. However, after several years of exceptional performance from US mega-cap technology companies, valuation is becoming increasingly important.

Some investors may therefore choose to maintain exposure to technology while also broadening their portfolios into:

• International markets
• Industrials
• Healthcare
• Financials
• Quality companies
• Other developed economies

The goal does not necessarily need to be abandoning technology. It may simply mean avoiding having an entire portfolio dependent on a small number of companies continuing to outperform.

The Bottom Line

For investors looking for long-term capital growth heading into 2027, VGS, IVV, NDQ and QLTY each offer something different.

VGS.ASX is arguably the strongest all-round core holding because of its global diversification.

IVV.ASX provides extremely low-cost exposure to the US sharemarket.

NDQ.ASX offers greater exposure to technology, artificial intelligence and innovation, but also carries higher concentration and volatility.

QLTY.ASX provides an alternative approach by focusing on profitable and financially strong global companies.

Rather than trying to identify one ETF that will outperform everything else, investors can combine ETFs to create a portfolio suited to their own risk tolerance and investment time-frame.