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In response to declining coral populations worldwide, conservation groups are increasingly applying restoration strategies to bolster abundance and diversity, including sexual propagation of corals. Collection and fertilization of coral gametes as well as larval rearing and settlement have been successful. However, post‐settlement stages remain a bottleneck (80–100% mortality), which makes this technique costly to implement at scale. To address this challenge, we compared the survival and colony size of three sexually propagated Caribbean coral species,Diploria labyrinthiformis,Pseudodiploria strigosa, andOrbicella faveolata, reared at three levels of investment: direct outplant to reef, in situ field nursery rearing, and ex situ aquaculture facility rearing. As part of coral sexual propagation work in St. Croix, United States Virgin Islands, recruits were reared for 1 year before being outplanted to reef plots and were monitored annually for three subsequent years. The cost‐effectiveness of each rearing strategy was calculated at each monitoring time point via coral seeding unit yield and cost per seeding unit. Although survival was low at 4 years (0–1.8%), corals reared in the in situ nursery displayed significantly higher survival and therefore lower cost per seeding unit than the other two investment strategies. These results highlight the benefits of an in situ nursery stage to increase long‐term juvenile survival and cost‐effectiveness. The return on investment of corals reared in the in situ nursery suggests that outplanting sexually propagated corals may be a viable restoration strategy; however, the low proportion of corals surviving at 4 years highlights current limitations when outplanting on degraded reefs.