SCHG - SCHG: A Fund Facing Headwinds Should Continue To Underperform Broader Nasdaq Index

2024-07-17 01:06:27 ET

Summary

• Schwab U.S. Large-Cap Growth ETF has outperformed due to tech sector holdings but has consistently underperformed the Nasdaq over the last decade.
• The fund is now overvalued, with core big-cap tech holdings likely trading at unsustainable valuations, leading to a sell recommendation.
• Signs of a consumer spending slowdown and high valuations of big tech stocks indicate the potential underperformance of SCHG moving forward.

Correctly analyzing markets and sectors is just one part of investing. While having insight into an industry or the broader macroeconomy as a whole is obviously important, deciding when and how to take a position is also equally relevant....

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