Growth stocks have fallen out of favor in 2026 as growing skepticism around artificial intelligence mega-caps has driven investors toward value stocks instead, Morningstar investment specialist Susan Dziubinski writes in a new blog post.
As a result, growth stocks look more attractive today than they have in a long time, according to Dave Sekera, Morningstar's chief U.S. market strategist.
"Following the selloff in technology stocks, which are overweight in the growth category, growth stocks have become increasingly undervalued," he says.
Dziubinski notes that investors who own core stock mutual funds or ETFs, especially those that track a broad market index, already have exposure to growth stocks, and so are unlikely to need to add more growth stocks to their portfolios.
At the same time, she says, some investors may think growth stocks are the place to be, and would like to tilt their portfolios toward that style. For such investors, there are many fine growth stock ETFs to choose from.
Growth stock ETFs mainly invest in U.S companies that are projected to grow faster than the market. The definition of growth is based on fast growth (high growth rates for earnings, sales, book value and cash flow) and high valuations (high price ratios and low dividend yields).
Many of these ETFs focus on companies in rapidly expanding industries. This group covers a range of market caps.
Some growth stock ETFs track indexes and do not have managers picking stocks. Active growth stock ETFs, meanwhile, are run by managers who actively pick stocks.
Dziubinski lists 12 top growth stock ETFs run by active managers.
To find the best ones to buy, Morningstar screened for those earning a medalist rating of Bronze, Silver or Gold with 100% analyst coverage, as of March 23. All the ETFs on the list fall into the small-growth, mid-growth or large-growth Morningstar Categories and have at least $100 million in assets.
See the gallery for the 12 best active growth stock ETFs, according to Morningstar. Year-to-date performance is as of March 27.
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