Schwab US Large-Cap Growth ETF

SCHG

Market cap $50.4B

Schwab US Large-Cap Growth ETF remains rated Hold as earnings upgrade momentum decelerates across top holdings. Recent quarterly results confirm a cooling trend in earnings revisions, with positive but slowing upgrades, especially among mega caps. Market regime favors dispersion and consolidation over broad-based rerating, making selective earnings acceleration critical for outperformance.

SCHG: Recent Economic Data Shows Why This Is A Well-Positioned Fund

The Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) isn't designed to generate meaningful dividend income.

The Schwab U.S. Large-Cap Growth ETF™ stands to benefit from surging AI-driven semiconductor demand and robust technology sector momentum.

Growth ETFs are built for above-average returns, helping beat the market over time. As tech stocks continue to surge, growth funds could be on the verge of lucrative returns.

SCHG carries a slightly lower expense ratio but also a marginally lower dividend yield than VOOG. VOOG posted a higher one-year total return, while SCHG has delivered marginally stronger five-year cumulative growth.

Both funds charge the same low expense ratio and offer nearly identical dividend yields. VUG has delivered a higher one-year return, while SCHG showed slightly lower volatility and a shallower drawdown.

Schwab U.S. Large-Cap Growth ETF remains a compelling long-term buy, driven by AI adoption and a proven track record of outperformance. SCHG offers a low-cost structure (0.04% expense ratio) and heavy technology exposure, with NVIDIA as its top holding and 48% portfolio allocation to the sector. The ETF has outperformed the S&P 500 and peers like MGK over multiple timeframes, though it lags QQQ over ten years.

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.