5 Growth ETFs That Make Millionaires (2 Are NEW)

[01:00:00:04 - 01:00:20:03] I often hear people say that they have the   worst luck possible when it comes to investing.  You finally decide to buy a stock and the next day   it crashes. Or you sell something that you've  been holding onto for years and the next week   it skyrockets. And that feeling is why I get the  same question over and over. Is today a bad day to   invest in when the market is this high? [01:00:20:03 - 01:04:58:14]   Imagine that you had the worst timing of any  investor alive, where every single time that   you put money into the S&P 500, you managed  to do it on the exact day that it topped out.   And that was right before it crashed. And then  from there you did nothing about it. You never   sold. You just held on. You bought in October of  2007, right before the worst crash since the Great   Depression. Also the exact same time that I bought  my first house. Not a great time. And from there,   you watched as 55% of your money just completely  disappeared. Even then, you're only 1.8% a year,   which is better than the market's own long-term  average. And when you look at the rest of them   up here on the screen, every single one of them  says the same thing. They all wound up with a   decent return over time. The reality is, some of  those were negative for years before they finally   turned a profit. So the timing really isn't the  hard part. Leaving it alone is the hard part.   Because with ETFs, somebody else runs it for  you. Somebody else rebalances when it drifts.   And you can genuinely just set it and forget  it. And of course, I need to state up front   that I'm not a financial advisor and I do this for  educational purposes. Now right out of the gate,   not all ETFs are the same. Some of them are built  to be left alone for 40 years. And others happen   to be cyclical or more violent with their ups and  their downs. So today, I'm going to walk through   the five high-growth ETFs that I would actually  recommend But not only am I covering the ETFs for   growth, I'm also going to explain which account I  would prefer to hold each one in. Like a taxable   account. Or an IRA, which is tax-advantaged.  And before anybody heads down to the comments,   there are going to be a couple of funds on this  list that you possibly don't agree with. And   there's probably one that you expected to see that  isn't there at all. And the reason has nothing to   do with performance. It's because of the overlap  within their holdings. The point of this video   is for me picking five ETFs that complement one  another without being duplicates of each other.   And that's exactly what I'm going to show you  by the end of this video. So let's jump in with   Vanguard S&P 500 ETF, symbol VOO, where it holds  the 500 largest public companies in America and   weighs every one of them by how big that company  is. And that weighting is worth 20 seconds because   it isn't what most people picture. You're not  buying 500 companies equally. So if you put   $1,000 into this fund, about $76 of it goes into  Nvidia. While about $6 goes into Costco, a company   that most of us go to every other week. The Giants  obviously get the biggest slices. And everybody   else is just along for the ride. And when a  business shrinks, its slice shrinks right along   with it. But the best part is, nobody has to make  a decision. Nobody has to hold a meeting. That is   the entire reason this thing can sit untouched  for 40 years. For my money, its job is to just   be the floor. It's what lets everything else I own  be a little violent. And by violent, I mean that   it's got big growth, which comes with big highs  and a lot of big lows. And of course, something   underneath all of that has to be a little boring.  And this is the definition of boring in my mind.   And for all intents and purposes, it has been a  very good floor. Over the last 10 years, this fund   has returned 15.5% a year, which turned $10,000  into $42,000. To me, that is a fantastic outcome   and it's why this is the base of everything that I  own. But like I said, it's just the base. It's not   the ceiling. So hang onto that $42,000 because  I'm going to put it up against the next couple   of funds and the gap is bigger than most people  expect. And since I'm going to let this one sit   for decades, this is a must-have ETF in my cash  account, meaning a regular taxable brokerage   account. Because you have to remember, if you want  to retire early, then you're going to need money   that you can actually reach. And money inside of  an IRA is meant to sit there until you hit the   right age. Now of course there's a few ways around  it, like the 72T, but those are hoops and I would   much rather just have an account that I can pull  from without asking anybody's permission. And the   reason that I put riskier ETFs in a tax advantage  account like an IRA is because if you need to buy   or sell the ETF to minimize your risk or improve  your returns, you can take action without an   immediate tax hit. And please stick around to the  end because I'm going to put all five of these   funds side by side with their expense ratios,  their dividends, and their performance. This   way you can see exactly how they stack up against  one another and how I'm choosing to invest in them   based on my age and my risk tolerance. [01:04:58:14 - 01:06:38:26]   Most every high-growth ETF tends to have at least  one thing in common. Nearly the entire growth   story of the market comes down to at least one  word, AI. But some of you may think that you've   missed your chance to invest in these assets.  But there's one investment that may be even   more valuable, and that's in yourself. Because  when it comes to careers and business and income,   those are going to people who actually know how  to use AI. Because at the end of the day, owning   the stock is exposure. But knowing the tool, well,  that happens to be leverage. That's exactly why I   want you to join the Clod Mastery Sprint. It's a  full deep dive into Clod, and it's real use cases   and 10-plus other AI tools. It's happening  this weekend, 10am to 7pm Eastern Standard,   and this is brought to you by today's sponsor,  Outskill, where they've made it completely free   for my audience. Just register through the  link down in the bio, where over 10 million   people around the world have already gone through  this. If you're even a little serious about Clod,   this isn't one to skip. In two days, you'll  run deep research with Clod. You'll build your   own artifacts and dashboards, put together full  presentations, and set up connectors that automate   the boring stuff, even your job search. You'll  get hands-on with Clod code, build custom agents,   generate AI visuals and videos, and walk out  with your entire week running on autopilot. Sign   up now, and you'll also unlock three bonuses. 50  secret Clod codes that turn it into God-tier tool,   a complete AI prompt library, and a personalized  AI toolkit builder. And you're mentored by actual   leaders from Microsoft, Google, Amazon, and  Nvidia. Two days can change the next two years.   Sign up before the seats sell out. Link is down in  the description. You can also scan the QR and join   the WhatsApp community before it closes. [01:06:38:26 - 01:16:32:06]   Let's go ahead and jump into the opposite end  of the risk scale with the Roundhill Memory ETF,   simple D-R-A-M, where it only holds 12  companies that make their money from   memory chips. And it does not spread that money  out because Micron, Samsung, and SK-Hynix carry   roughly three quarters of the whole fund just  between them. Now here's why you'd want it.   The AI build out ran straight into a memory wall  in 2026 because every AI chip needs memory stacked   right next to it and there isn't enough of it  being made. That specific kind of memory is   forecast to compound at 25% a year through the  end of this decade, which is the fastest growth   attached to anything in this video. And this fund  is the cleanest way to buy it. It's also the only   fund here that gets you direct access to Korean  memory makers like Samsung. So I want that growth,   but I only want a small piece of it. And it lives  in my IRA because this is one that I'm pretty sure   that I'm going to have to touch at some point.  Memory has consistently worked in cycles. And   while the demand looks like it runs for several  more years, eventually supply is probably going   to catch up and prices will come back down. And  if I think that's starting to happen, then I want   to be able to sell some of this and move it  into something else. That's why an IRA is the   only place that I can do that without taking an  immediate tax bill. Now let's move on to the Vanax   Semiconductor ETF, symbol SMH, which owns the 25  largest semiconductor companies and nothing else.   So no software, no banks, just businesses that  design and manufacture those chips. It weights   them by size the way that the SMP fund does, but  with one rule that changes everything because it   caps how big any single company is allowed to get.  And right now that's about 20%. And of course,   here's why that rule matters to you. It means that  the fund cleans itself. Whenever a company gets   too big inside it, the fund is forced to sell  some of it down and push that money right back   into everything else. And you can watch it working  because in the first half of 2026, almost none of   this fund's gains came from its largest holding.  In fact, they came from Micron, Intel and AMD,   which are much further down on the list, and  they're doing all the heavy lifting instead.   That's why it's my highest conviction growth  holding here. And here's the gap that I told you   to hang on to. Over the last 10 years, this fund  has returned 34% a year. So that same $10,000,   it became roughly $186,000, where the SMP fund  turned it only into 42,000. That is the entire   reason that I don't just own the SMP fund and just  call it a day. But it does come at a little bit of   a cost and that is your ability to stomach all of  the ups and downs. This fund took 45% from peak   to trough in 2022. And that's one of four drops  of 27% or worse since 2018. You took nearly twice   the pain the SMP fund took that year. And you were  paid roughly three times over the following year   for just sitting still. And of course, sitting  still is a very easy thing to say and a very   hard thing to do while you're watching half your  money just disappear. But like the SMP fund, this   is one that I plan to hold for decades, so it sits  in my taxable account right alongside with it. Now   before moving on, if you're getting any value  from my videos, then hey, I'd really appreciate   it if you'd consider pressing the like button  and also consider subscribing to the channel.   And if you want to see any of my deep dive  analysis or have Q&A sessions directly with me,   feel free to join the community on Patreon. Next  up is the TEMA Space Innovators ETF, symbol NASA,   holding 38 companies across the commercial space  economy. So launch providers, satellite operators,   and the companies that own the spectrum those  satellites run on. And there's really no index   underneath it at all because a team at TEMA picks  every one of those names by hand. This is the only   fund on my list that overlaps essentially with  nothing else that I hold. Everything else here   is some version of a chip bet that's wearing just  a different hat. And this one is a $600 billion a   year industry that most portfolios don't even  touch it at all. Now the biggest concern with   a NASA ETF is that most of the companies in  here don't really make any money yet. And the   fund is down more than 40% from where it peaked  in late May. So this is obviously a very small   position for me and it sits in my IRA where I can  resize it whenever I want. But I will say this,   if you were considering to start a position  in this space economy, this is a far better   entry than it was back in May. Now we can move  on to the Defiance Quantum ETF, symbol QTUM,   holding 89 companies where every single position  lands right at around 1%. And in some ways that's   the whole appeal. Because nothing in here can  completely sink you and nothing here can also   carry every bit of you. Now the interesting thing  about this fund is that only about 12% of it is   actually tied to quantum computing. And a bit of a  bonus with this one is that 20% of its holdings is   with foreign listed companies that your S&P  fund probably doesn't carry, like MediaTek,   which is a Taiwanese chip designer with no real  US listing. So for most of you, this is the only   practical way to own those businesses. And given  the quantum space is very up and down, I think it   goes without saying I'm going to put this one in  my IRA and the chart that I'm about to show you is   going to list exactly why. So just like I promised  at the beginning, let's go ahead and take a minute   and look at the overlap of all the holdings of  these funds. For me, two things really jump off   the chart. The Semiconductor Fund and the Quantum  Fund are the pair to think the hardest about. And   the Space Fund touches nothing else at all, which  is the whole reason that it made the list. So if   you already own an S&P fund and a chip fund, those  are the lines that I'd be looking at before you   add anything else. But that top number does not  mean those two funds are duplicates. They own most   of the same companies, but one of them puts 20%  of your money into Nvidia and the other one just   puts 1%. Because remember, one is a concentrated  bet on the winners. The other is insurance against   being wrong about who the winners are. And this  is also where I begin to answer the question that   I know some of you have already started to type  out in the comments, which is why QQQ isn't on   the list or it's cheaper twin Now I honestly have  nothing against it, and it genuinely beat the S&P   fund over the last 10 years. But look at where it  lands on this chart. It's 49% of the same fund as   VOO and 32% of the same fund as the Semiconductor  Fund. And those two are the backbone of this   entire list. So in my mind, it isn't a sixth idea  for me. It's a remix of the two positions that I   already lean on the hardest, and it gets squeezed  out from both sides. And that is exactly the same   type of test that I want you to run on your own  funds. Now let's double click into the companies   themselves, because this is where it gets a  little bit away from you. Nvidia sits inside   three of these five funds. So if you bought all of  them in equal amounts, Nvidia would end up at 5.9%   of everything that you own. And of course, most  of you probably already saw that coming. However,   your biggest position is Micron. It sits inside  four of the five funds, and it's a quarter of the   memory fund all by itself. So buying all five in  equal amounts turns one memory chip company into   7% of your entire portfolio, sitting ahead of  Nvidia. And of course, you never picked that.   It happened because four fund managers each  made a perfectly reasonable decision inside   their own fund, and nobody really added them up  for you. So let's go ahead and take a step back,   and here's how I'd put $100 to work across these.  And I want to be clear upfront that this is based   on my age and my own tolerance for risk, and  really nothing else. I guarantee you that you're   sitting in a very different position than me.  So take this as a starting point, and this is   not a prescribed way of approaching it. So for me,  I'm putting 40% into the S&P fund and another 40%   into the semiconductor fund. And both of these as  a minimum are in my taxable account. The last 20%   splits across the other three, with 10% going to  the memory fund, 5% each to the quantum fund and   the space fund. So as I mentioned earlier, I make  it a point to hold those three only in my IRA,   so I can reallocate them without a tax bill kind  of holding me back. So 80% of my money is going   to be sitting in the two funds that I never have  to touch. And that is exactly what earns the other   three the right to be as strange as they are. So  here's how the top 10 holdings break out based   on the allocation for myself. We have Nvidia at  11.4% and that's the one that I chose. And then   there's Micron sitting second at 5.6% and that's  the one that chose me. And it's still there even   after I kept the memory fund small. And that's the  difference between a position and pure accident.   And here's the comparison that I promised you  at the very start. All five of them side by   side. Now there are two things that I'm going to  point out on that chart. The two cheapest funds   are also the two that I never have to touch.  And I'm going to point out right now that is   not a coincidence. And the two most expensive  ones are the two with barely any track record,   which is exactly why they're the smallest  positions that I hold. And I'm also keeping   them in my IRA so I can change them as I like. So  that's my entire setup of five funds that actually   grow that don't turn out to be the same bet once  you open them up. And the three that I might   actually act on are sitting where acting is free.  So a key takeaway is open up the holdings before   you buy and add up what you already own. So if you  would go ahead and tell me down in the comments   which of these five you would argue with because  I guarantee you that some of you have a much   better sixth fund that I should have included.  And as always, thanks so much for watching.