Schwab U.S. Large-Cap Growth ETF™ is a passive ETF that replicates its benchmark with a minimal expense ratio of 0.04%. The declines of recent weeks have brought forward P/Es to more acceptable levels (according to my models). And despite strong expectations, SCHG still shows a premium in its price, in my opinion justified by the sector's competitive ROE.
The Schwab U.S. Large-Cap Growth ETF is positioned to benefit from a multi-trillion-dollar AI-driven data center upgrade cycle. SCHG offers a 'set-and-forget' approach for investors seeking exposure to leading U.S. tech companies and the artificial intelligence growth theme. Strong Q3 earnings reports from Magnificent 7 companies could lead to a serious valuation boost for the SCHG.
Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund launched on December 11, 2009.
| ARCA Exchange | US Country |
The foundation of the specified fund's strategy lies in its focus on leveraging the potential of the stock market by investing in stocks included in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. This index is a subset of the Dow Jones U.S. Total Stock Market Index, specifically designed to capture the large-cap growth segment actually accessible to investors in the market. By targeting companies ranked within the top 750 by full market capitalization that are also classified as "growth" according to several criteria, the fund aims to maximize returns for its investors by tapping into the dynamism and potential of these growth-oriented large-cap stocks.
This service is at the core of the fund's offering, focusing on investment in large-cap stocks deemed to exhibit growth characteristics. These stocks are selected from the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. The selection process involves identifying companies ranked 1-750 by full market capitalization that are classified as "growth" based on a myriad of factors, including but not limited to, their earnings growth, revenue growth, and market potential. This careful selection aims to ensure that investors have access to stocks with the potential for significant appreciation.