The Schwab U.S. Large-Cap Growth ETF and iShares MSCI USA Quality GARP ETF offer distinct risk/reward profiles amid the current AI-driven market. GARP outperforms SCHG short-term due to heavier exposure to memory and semiconductor names benefiting from AI infrastructure buildout. SCHG provides broader mega-cap tech exposure at lower cost, potentially outperforming long-term as AI spending matures and market dynamics shift.
SCHG is my preferred Buy for new core-growth allocations, offering broader exposure and a lower cost than QQQM. SCHG trades at a slight valuation discount to QQQM and employs growth screening across a wider universe, but is more concentrated in its top holdings. QQQM remains a buy for those seeking pure Nasdaq-100 exposure; recent outperformance is driven by AI and semiconductor rallies, not the new IPO rule.
If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Schwab U.S. Large-Cap Growth ETF (SCHG), a passively managed exchange traded fund launched on December 11, 2009.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 1.42M | $37.19M | $50.94M | $13.75M | 36.98% |
Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 27,946 | $684,845.57 | $982,022.44 | $297,176.87 | 43.39% |
Curtis Ellergodt Rothschild Investment LLC | 577 | $16,863.83 | $20,720.07 | $3,856.24 | 22.87% |
Tom McDonald Richards, MERRILL & PETERSON Inc. | 3,968 | $126,618.67 | $140,864 | $14,245.33 | 11.25% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 3.63M | $122.77M | $130.28M | $7.51M | 6.12% |
| 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.