7 Best High-Growth Stocks for Young Investors
The best high-growth stocks for young investors is our topic today. Many of the high-growth darlings of the pandemic have remained under steady pressure during the first half of 2022. Signs of an imminent recession and geopolitical turmoil continue to drag down broader indices and growth-focused exchange-traded funds (ETFs). For instance, the iShares Russell Top 200 Growth ETF (NYSEARCA: IWY ) and the Vanguard Growth Index Fund ETF (NYSEARCA: VUG ) have fallen 27% and 28% year-to-date (YTD), respectively. Meanwhile, the SP 500 index has fallen 18% over the same period. Yet, investing regularly over many decades is known to be a great wealth creator for retail investors. Let’s assume that you are now 25, with $1,000 in savings and that you plan to retire at age 65. You decide to invest that $1,000 in a fund now and make an additional $3,000 of contributions annually at the start of each year. You have 40 years to invest. The annual return is 7%, compounded once a year. At the end of 40 years, the total amount saved becomes goes well over $650,000.
7 Best High-Growth Stocks for Young Investors
The best high-growth stocks for young investors is our topic today. Many of the high-growth darlings of the pandemic have remained under steady pressure during the first half of 2022. Signs of an imminent recession and geopolitical turmoil continue to drag down broader indices and growth-focused exchange-traded funds (ETFs). For instance, the iShares Russell Top 200 Growth ETF (NYSEARCA: IWY ) and the Vanguard Growth Index Fund ETF (NYSEARCA: VUG ) have fallen 27% and 28% year-to-date (YTD), respectively. Meanwhile, the SP 500 index has fallen 18% over the same period. Yet, investing regularly over many decades is known to be a great wealth creator for retail investors. Let’s assume that you are now 25, with $1,000 in savings and that you plan to retire at age 65. You decide to invest that $1,000 in a fund now and make an additional $3,000 of contributions annually at the start of each year. You have 40 years to invest. The annual return is 7%, compounded once a year. At the end of 40 years, the total amount saved becomes goes well over $650,000.