Schwab US Large-Cap Growth ETF

SCHG

Market cap $51.8B

The S&P 500 index (^GSPC 0.59%) is a powerhouse, earning total returns of nearly 242% over the last 10 years, as of this writing. While investing in index-tracking funds like an S&P 500 ETF can be a great way to mitigate risk, growth stocks and exchange-traded funds (ETFs) can help supercharge your earnings over time.

Schwab US Large-Cap Growth ETF (SCHG) is upgraded to a buy, reflecting improved economic outlook and reduced political uncertainty. SCHG has outperformed the S&P 500 and Nasdaq-100 over five years, driven by heavy concentration in large-cap tech leaders like NVDA, MSFT, and AAPL. The ETF's strategy of annual reconstitution and sector concentration targets high-performing growth companies, but increases risk due to lack of diversification.

You don't have to pick individual stocks to outperform the stock market. A single ETF can do the trick, and Schwab has a few options to consider.

While Stephen Curry (91.1%) and Steve Nash (90.4%) are synonymous with lifetime NBA free-throw marksmanship, 70s Hall of Famer Rick Barry stands apart – not only because he also played in the ABA and pioneered the concept of the point forward position, but because he notched a lifetime free throw percentage of 89.9% using the underhanded “granny shot” – ridiculed despite its effectiveness most recently displayed in the Netflix sports sitcom Running Point, starring Kate Hudson.

SCHG offers diversified exposure to top U.S. large-cap growth stocks at a rock-bottom 0.04% expense ratio, making it ideal for long-term investors. The fund's historical annual return of 16.5% since 2009 outperforms the S&P 500, and its low fees significantly boost long-term compounding. SCHG's robust index methodology, annual rebalancing, and sector diversification help manage concentration risk and maintain portfolio quality.

Came across $10,000? It is a sum that feels weighty enough to matter yet fragile enough to lose.

Launched on December 11, 2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.

The AI revolution continues to be a massive tailwind for the entire tech sector, as evidenced by strong Q2 results and a notably positive Q3 EPS outlook. Ambitious corporate multi-trillion-dollar investments, incentivized by the Trump administration's policies, are likely to ensure that these tailwinds remain strong for the foreseeable future. November has delivered a 100% win rate for Schwab U.S. Large-Cap Growth ETF over the past ten years. Late October and November also typically coincide with the Q3 earnings season for "Big Tech."

SCHG offers high-growth exposure to leading U.S. tech companies, riding the AI and data center boom for potentially outsized long-term returns. With a 16%+ annualized return since 2009, SCHG is a proven compounding vehicle, ideal for young investors seeking wealth accumulation. AI infrastructure spending is a major catalyst, benefiting SCHG's top holdings like Nvidia, Microsoft, Amazon, and Alphabet.

SCHG is my top pick for long-term compounding and generational wealth, thanks to its tech-heavy portfolio and low 0.04% expense ratio. The ETF's holdings are poised to benefit from explosive growth in AI, humanoid robots, quantum computing, and autonomous vehicles. SCHG has delivered impressive annualized returns over 3, 5, and 10 years, earning a 5-star Morningstar rating.