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The value trade has powered the stock bulls for most of this year. Investors have rotated back into growth-oriented areas of the market in recent weeks on optimism surrounding the economic recovery. In particular, big tech companies have rebounded strongly after being hit by inflation fears and lofty valuation concerns.

Inflation fears have eased following the Fed’s statement that it views inflation as temporary. Also, the latest personal consumption expenditures (“PCE”) data shows that underlying inflation rose less than expected in May given the alleviation-related worries about the sudden tapering in stimulus. Notably, the University of Michigan consumer survey’s one-year inflation expectation dropped to 4.2% in June from a decade-high 4.6% in May while the five-to-10-year inflation expectation fell to 2.8% this month from 3.0% in May.

With millions of Americans fully vaccinated and pandemic restrictions being rolled back, consumer confidence has risen, resulting in speedy economic recovery. This has been easily depicted by the recent rounds of economic data. A measure of U.S. factory activity climbed to a record high in June bolstering economists' expectations of double-digit growth in the second quarter. U.S. consumer sentiment rebounded in early June as inflation fears subsided and households grew more optimistic about future economic growth and employment.

Further, the expanded stimulus, huge infrastructure package, signs of job growth and strong corporate earnings are acting as strong catalysts for the stocks.

Given this, the ultra-popular iShares Russell 1000 Growth ETF (IWF - Free Report) has gained 6% over the past month against the loss of 1.2% for the value counterpart iShares Russell 1000 Value ETF (IWD - Free Report). Growth investing focuses on capital appreciation rather than annual income or dividend. It is a stock-buying strategy that aims to profit from companies, which grow at above-average rates compared to their industry or the market. This is a more active attempt versus the value to build up the portfolio and generate more return on the capital invested. Growth funds tend to outperform during an uptrend.

However, these offer exposure to stocks with growth characteristics that have comparatively higher P/B, P/S and P/E ratios and exhibit a higher degree of volatility especially compared to the value stocks.

Given this, we have highlighted five ETFs that have been riding high on a stunning growth comeback. These funds have gained in double digits over the past month.

SoFi 50 ETF (SFYF - Free Report) – Up 20.7%

This ETF follows the SoFi Social 50 Index and is composed of the top 50 most widely held U.S. listed stocks on SoFi Invest, where the companies are measured by the number of accounts that invest in that stock. The most popular meme stock — AMC Entertainment (AMC - Free Report) — takes the largest allocation in the fund basket with an 11.8% share. Consumer cyclical is the top sector accounting for 35.8% while communications (22.1%), technology (20.3%) and consumer non-cyclical (13%) round off the next three spots. The product has amassed $25.5 million in its asset base and charges 29 bps in annual fees. It trades in an average daily volume of 21,000 shares.

Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO - Free Report) – Up 19.5%

This thematic investment product is actively managed and designed to concentrate on those few disruptive companies that are poised to dominate the new era of the cloud and then enhance the concentrated exposure with options. It holds 21 securities in its basket with the largest allocation to the top three holdings that collectively make up for 71% of the total assets. The ETF is a high-cost choice, charging 1.02% in annual fees. It has accumulated $4.3 million in its assets since its inception in late December and trades in an average daily volume of 13,000 shares.

Simplify Volt Fintech Disruption ETF (VFIN - Free Report) – Up 18%

This ETF seeks to offer exposure to the most disruptive fintech companies that are on the forefront of cashless payments. It aims to invest close to 25% across Square (SQ - Free Report) stock and Square call options while targeting 25% in Lemonade (LMND - Free Report) stock and Lemonade call options. A modest put option overlay is designed to help mitigate sharp market crashes. The product has accumulated $2.6 million since its inception in late December and charges 1.03% in annual fees. It trades in an average daily volume of 5,000 shares.

Franklin Genomic Advancements ETF (HELX - Free Report) – Up 16.9%

This ETF provides access to companies benefiting from or facilitating the use of new research including DNA sequencing, gene editing, and personalized medicine. It holds 54 stocks in its basket with a modest concentration on the top three firms. The fund is skewed toward life sciences tools & services at 49.5%, while biotechnology makes up for 33.3% of assets. It has accumulated $16.9 million in its asset base since its launch in late February and charges investors 50 bps in annual fees.

ARK Innovation ETF (ARKK - Free Report) – Up 16.2%

This is an actively managed fund seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvements, and advancements in scientific research related to the areas of DNA technologies (Genomic Revolution), industrial innovation in energy, automation and manufacturing (Industrial Innovation), increased use of shared technology, infrastructure and services (Next Generation Internet), and technologies that make financial services more efficient (Fintech Innovation). In total, the fund holds 51 securities in its basket and charges 75 bps in annual fees. The product has AUM of $24.3 billion and trades in volume of $10.6 million shares a day on average.