XLK - Is SCHG A Good ETF And Is It An Attractive Bet Now?
2024-01-26 05:58:30 ET
Summary
- Schwab US Large-Cap Growth ETF is a low-cost ETF that offers coverage to large-cap US-based stocks with growth characteristics.
- We like the ETF's screening mechanism, which has a healthy blend of the past, the present, and the future.
- SCHG has outperformed the popular Vanguard Growth ETF since its debut and has consistently shown better risk-adjusted performance across different time periods.
- However, investors should be cautious about SCHG's prospects as the large-cap growth universe appears overextended and overvalued, particularly the tech sector, which accounts for 48% of SCHG's portfolio.
- The reward-to-risk equation on the standalone charts looks unappealing, with SCHG perched near its channel resistance and on the verge of hitting its upper Bollinger band.
ETF Profile
The Schwab US Large-Cap Growth ETF (SCHG) is a 14-year-old product, with $24bn in AUM, that offers coverage to large-cap US-based stocks, that exhibit growth characteristics. It's fair to say that gaining access to SCHG's 250-odd names won't burn a hole in your pocket, as the expense ratio of this product is compellingly low at just 0.04%. There also appears to be an inherent stability to this portfolio, as represented by a lowly annual turnover rate of just 5%....
Is SCHG A Good ETF And Is It An Attractive Bet Now?