Declines in growth stocks amid inflation and rising interest rates provide a buying opportunity.
Growth stocks are those that are expected by the market to increase their revenues and earnings faster on average than others in the same industry. These high-flying stocks tend to hail from the technology and communications sectors, and often exhibit elevated valuations in the form of high price-earnings, price-book and price-sales ratios.
However, the high-inflation, rising-rate environment of 2022 has wreaked havoc on their share prices. Many growth stocks are currently trading well below their 52-week highs. Still, investors “bottom fishing” for a good deal can find many growth stocks with solid management, sound balance sheets and good prospects.
A more diversified way of speculating in growth stocks could be through an exchange-traded fund, or ETF. Here is a list of seven growth ETFs to buy in 2022.
The post 7 Best Growth ETFs to Buy Now originally appeared at U.S. News & World Report.