Wall Street has cheered the swearing in of President Joe Biden as the 46th President of the United States. In fact, the S&P 500 witnessed its best Inauguration Day returns of 1.39% since Ronald Reagan’s second inauguration in 1985, according to Dow Jones Market Data, as quoted in a MarketWatch article.

It is believed that the chances of another tranche of coronavirus-aid package and improved coronavirus vaccine rollout are making a strong case in favor of faster U.S. economic recovery in 2021. Going on, Democrats have taken control of the U.S. Senate with two Georgia victories. Notably, an effective control of the U.S. Congress by the Democrats is likely to bring in higher fiscal stimulus funding and faster implementation of nationwide vaccination in order to curb the pandemic along with higher allotment of funds for infrastructural development and boosting jobs in the near future.

Against this bullish backdrop, let’s look at some factors that can lead to an outperformance by growth ETFs:

A $1.9-Trillion Coronavirus Stimulus Package

Biden has announced details of his $1.9-trillion stimulus plan, which has been named the American Rescue Plan. The relief package will extend the additional federal unemployment payment through September and will raise it to $400 per week. The new plan also includes $1,400 of direct payments to many Americans and extends the federal moratoriums on evictions and foreclosures through September, per a CNBC article.

The stimulus proposal also allocates $350 billion in state and local governments support, sets aside around $70 billion for coronavirus testing and vaccination programs, and increases the federal minimum wage to $15 per hour, according to the same CNBC article. It is worth noting here that there is ambiguity regarding whether Biden’s proposal will be approved by Congress.

Increasing hopes of an additional stimulus package, Janet Yellen, President-elect Biden’s designated nominee for Treasury Secretary and a former chair of the Federal Reserve, has urged to ‘act big’ during her appearance before the Senate Finance Committee on Jan, 19, per a CNBC article. She has requested the federal government to pass a large stimulus to support the economy.

Improved Coronavirus Vaccine Rollout

The beginning of the inoculation process among people is buoying optimism. Dr. Rochelle Walensky, Biden’s choice to lead the Centers for Disease Control and Prevention, recently commented that she’s confident the United States will be equipped with sufficient vaccine doses to meet the Biden administration’s aim of vaccinating 100 million people in 100 days, per a CNBC article.

Biden is expected to increase the distribution of coronavirus vaccines by giving more finds to local and state officials, increasing the number of vaccination sites and introducing a national education campaign, per a CNBC article. Increasing optimism on an enhanced vaccine rollout program, CNBC’s Jim Cramer has commented that the stock market “could explode” if Biden improves coronavirus vaccinations in the United States, as mentioned in a CNBC article. He also said “you can’t get this economy open until we’ve figured out how to get the vaccines from Pfizer and Moderna into our arms,” per a CNBC article.

Fed’s Support

Amid the pandemic, the central bank has pledged to hold rates at a near-zero level and will continue with the asset purchase program at the current rate until “substantial further progress” is made to reach a state of healthy inflation and maximum employment levels. Moving on, the Fed’s stand on the inflation-related policies is expected to fuel bullish sentiments.

Growth ETFs to Ride the Tide

Given the bullishness, investors seeking to capitalize on the strong trends should consider growth ETFs. However, it is worth noting that these funds 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 when compared to value stocks. Below we highlight a few growth ETFs that could be added to the portfolio.

Invesco Dynamic Large Cap Growth ETF PWB

The fund is based on the Dynamic Large Cap Growth Intellidex Index. It charges an expense ratio of 0.56%. PWB carries a Zacks ETF Rank #1 (Strong Buy) with a Medium-risk outlook.

SPDR Portfolio SP 500 Growth ETF SPYG

The fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P 500 Growth Index. It charges an expense ratio of 0.04%. SPYG carries a Zacks ETF Rank #1 with a Medium-risk outlook (read: ETFs to Play as Beginning of Biden Era May Prompt Market Rally).

iShares S&P 500 Growth ETF IVW

The fund provides exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market. It charges an expense ratio of 0.18%. IVW carries a Zacks ETF Rank #1 with a Medium-risk outlook.

Schwab U.S. Large-Cap Growth ETF SCHG

The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. It charges an expense ratio of 0.04%. SCHG carries a Zacks ETF Rank #1 with a Medium-risk outlook (read: ETF Strategies to Gain From US Market Optimism).

Vanguard S&P 500 Growth ETF VOOG

The fund seeks to track the performance of the S&P 500 Growth Index. It charges an expense ratio of 0.10%. VOOG carries a Zacks ETF Rank #1 with a Medium-risk outlook.