Schwab US Large-Cap Growth ETF

SCHG

Market cap $52.8B

Investors looking to gain exposure to growth stocks often turn to exchange-traded funds (ETFs) for diversification, cost efficiency, and ease of trading. Among the most popular options are Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) and Schwab U.S. Large-Cap Growth ETF (NYSE: SCHG).

SCHG charges a slightly lower expense ratio than VONG and manages a larger asset base. VONG's portfolio holds roughly twice as many stocks while also leaning more heavily into the technology sector.

SCHG costs less to own than MGK, with a lower expense ratio. MGK has outperformed over the past year, but both funds show similar long-term risk and drawdown profiles.

For $100, investors can grab a few shares of this growth index ETF. It sports a long track record of beating its rivals.

SCHG is a BUY, offering superior long-term returns driven by leading big-tech holdings, strong free cash flow generation, and a low expense fee of only 0.04%. SCHG's 10-year average annual return is 17.9%, with significant outperformance versus the S&P500 and DJIA. Top holdings like NVDA, GOOG, and Broadcom provide technological advantages, robust balance sheets, and benefit from a weaker U.S. dollar.

This article continues my coverage of SCHG, Schwab's $54B large-cap growth ETF with a low 0.04% expense ratio and an excellent long-term track record. SCHG's balanced approach—blending historical and expected growth—supports resiliency, but elevated P/E ratios warrant caution amid optimistic earnings expectations. This caution isn't applicable only to SCHG. As I'll demonstrate, other low-cost passive ETFs like VUG, SPYG, and QQQ are also vulnerable, while GARP and CGGR look like solid complements.

Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Schwab U.S. Large-Cap Growth ETF (SCHG), a passively managed exchange traded fund launched on December 11, 2009.

The Schwab U.S. Large-Cap Growth ETF (SCHG) combines a smart strategy with ultra-low fees. Growth stocks need further earnings momentum, lower rates, and improved breadth to continue their rally.

The ETFs featured here invest in many of the top growth stocks in the world. Many of these top growth stocks come from the tech sector, which means these ETFs also tend to be more volatile.

The Vanguard Growth ETF has been a significant market beater. The Invesco QQQ Trust is heavily tech focused and can sometimes be volatile, but returns have been impressive.