Schwab U.S. Large-Cap Growth ETF offers exposure to the leading large cap companies that are best aligned to benefit from increased demand for AI. SCHG's tech-heavy portfolio, with top holdings like Apple, Microsoft, and NVIDIA, drives its outperformance but also presents concentration risks. Lower interest rates and AI advancements are key growth drivers for SCHG, making it a strong long-term investment despite potential tech sector volatility.
The Schwab U.S. Large-Cap Growth ETF is a compelling opportunity due to its focus on the largest U.S. corporations with intact fundamentals. AI is a global megatrend, expected to reach $1.8 trillion by 2030. U.S. companies like Nvidia, Broadcom, Microsoft, Google, Amazon, and Tesla lead in processors, cloud infrastructure, and real world. The ETF's 50% exposure to the Technology sector and strong performance history make it superior to peers and the S&P 500 Index.
Schwab Asset Management conducted stock splits for 20 ETFs, with October 11th being the first day each ETF is trading at its split-adjusted price.
Over the past three months, the market has broadened, with only Meta Platforms seeing a significant share price increase among the "Magnificent 7" stocks. Investing in the Schwab US Large Cap ETF offers substantial exposure to mega-cap stocks, particularly in the Technology sector, outperforming the S&P 500. SCHG's top holdings, including Apple, Nvidia, and Microsoft, make up roughly 60% of the fund, providing focused exposure to high-growth companies.
The Schwab U.S. Large-Cap Growth ETF (SCHG) was launched on 12/11/2009, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The Schwab U.S. Large-Cap Growth ETF offers strong historical returns and aggressive Mag 7 exposure. With a 48.7% IT sector weighting and a 0.04% expense ratio, SCHG is positioned for significant growth, despite potential tech sector volatility. The Schwab U.S. Large-Cap Growth ETF has outperformed the Vanguard Growth ETF, delivering a 148.7% return over five years.
SCHG is poised for growth due to the Fed cutting rates, which benefits growth stocks by reducing borrowing costs and stimulating economic activity. After the advent of ChatGPT in November of 2022, AI adoption is in the growth phase, with SCHG holdings like Microsoft, Amazon, and Alphabet driving corporate and consumer AI integration. There is also Apple with its iPhones to allow millions to access super smart apps.
Growth investing has thrived due to tech dominance; Schwab U.S. Large-Cap Growth ETF offers broad exposure to this sector with low fees. SCHG's top five holdings—Apple, Microsoft, Nvidia, Amazon, and Meta—comprise 44.5% of assets, posing significant concentration risk. The fund's heavy tech focus can lead to volatility in downturns, making it vulnerable despite its strong performance history.
The SCHG ETF has delivered an impressive 10-year average annual total return of 16.3% and charges an expense fee of only 0.04%. SCHG ETF offers concentrated exposure to the top cash-rich Tech companies that have strong global brands, generate excellent free-cash-flow, and are well positioned to monetize AI. Apple and Microsoft are the top-two holdings and equate to ~23.5% of the entire portfolio. Nvidia, Amazon, and Google equate to another 23.5% of the fund.
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 12/11/2009.
SCHG has tripled over the past decade by investing in the top technology companies. Recent market rotation may present an attractive buying opportunity. Top holdings include Microsoft, Apple, Nvidia, and Amazon, all with strong financial returns and excellent future potential in AI and cloud. SCHG has outperformed peers and S&P 500 with 16.3% average 10-year return, but risks include a relatively high P/E ratio.
With a small investment, you can greatly increase your exposure to today's top growth players. You could benefit from this purchase both now and in the future.