Investors have experienced bull market returns in 2017. Throughout the fourth quarter, new daily highs from multiple indexes have become common with the broad market S&P 500 Index now posting a year to date return of 15.73%. With stabilizing economic growth and improving corporate earnings, the trend appears likely to continue into 2018.

This is good news for equity investors and specifically those investors interested in growth stocks. While stock picking among top growth stocks can be tedious and challenging this category has proven to be an important wealth-building allocation across most diversified portfolios.

What many growth stock investors may be glad to see in 2017 is that the emergence of innovative new technologies in what many experts are calling the “new sharing economy” could be making near-term growth stock picking a little easier. And what’s even more enticing for growth investors is that there is a great crop of growth-indexed emerging technology exchange-traded funds (ETFs) out there that are poised to beat the market over the next few years.

The year’s top three growth ETFs are investing in cloud computing, internet e-commerce and artificial intelligence trends that are just starting to take hold in today’s “sharing economy.” These funds represent some of the ETF market’s top active management strategies. For investors they offer not only aggressive-growth exposure, but diversified thematic investment and low fees. So if you’re looking for new places to invest over a three to five year time horizon, consider adding these three growth ETFs to your portfolio.

Note: All figures are as of November 3, 2017. Funds were chosen based on year to date performance returns from the ETF growth equity category. These funds do not use leveraged strategies to achieve investment returns.

ARK Innovation ETF (ARKK)

Price: $35.30

Assets Under Management: $209.5 million

Average Volume: 109,218

YTD Return: 76.06%

Fee: 0.75%

Year to date the ARK Innovation ETF is the growth equity ETFs top performing fund. The ETF is managed by ARK Invest. The Fund is actively managed. It invests in companies offering innovative new products and services. Innovations include genomic sequencing, cloud computing technology solutions, internet e-commerce, internet credit services, blockchain, autonomous vehicles, robotics, 3D printing and more. ARKK combines the research efforts of three of the firm’s innovative sector funds (Genomic Revolution Multi-Sector ETF, Industrial Innovation ETF and Web x.0 ETF) to offer a comprehensively diversified innovation fund for investors.

Top holdings in the fund include Tesla (TSLA), Bitcoin Investment Trust (GBTC) and Stratasys (SSYS). Over the past three months the fund has returned 17.53%. Over the last six months it has a return of 37.94%.

ARK Web x.0 ETF (ARKW)

Price: $43.32

Assets Under Management: $132.1 million

Average Volume: 65,411

YTD Return: 72.66%

Fee: 0.75%

ARKW is ARK Invests internet-focused fund. The Fund is actively managed. It seeks to invest in digital internet companies providing a wide range of consumer and institutional client solutions. The Fund encompasses the following sectors: cloud computing, cybersecurity, big data, machine learning, e-commerce, digital media, blockchain, internet finance, the internet of things, mobile and social. 

Top holdings in the Fund include: Amazon.com (AMZN) Bitcoin Investment Trust (GBTC) and Athenahealth (ATHN). Over the past three months the Fund has returned 16.08%. Over the last six months it has a return of 40.29%.

Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ)

Price: $23.64

Assets Under Management: $1.1 billion

Average Volume: 1,031,121

YTD Return: 57.60%

Fee: 0.68%

The Global X Robotics & Artificial Intelligence Thematic ETF is one of many thematic investment ETFs from Global X. The Fund seeks to gain from investment in companies involved with robotics and artificial intelligence. This includes technology developers and companies deriving significant income from the use of robotic and artificial intelligence solutions. This Fund uses an index replication strategy to achieve its investment results. It seeks to track the investment returns of the Indxx Global Robotics & Artificial Intelligence Thematic Index by investing in the securities in the Index.

Top holdings include: Nvidia (NVDA), Keyense, Fanuc, Intuitive Surgical (ISRG) and Mitsubishi Electric. Over the past three months the Fund has returned 18.08%. Over the past six months the Fund has a return of 31.70%.

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