SPGP - SCHG: Comparison Against 4 Leading Large-Cap Growth ETFs
2024-03-22 23:09:23 ET
Summary
- SCHG has a 0.04% expense ratio, $27 billion in AUM, and excellent 3Y, 5Y, and 10Y total returns, making it one of the leading large-cap growth ETFs on the market.
- Low overlap with large-cap value ETFs like SCHD make it a terrific option for investors looking to gain some control over exposure to the growth and value factors.
- SCHG trades at a high P/E, even against category peers like QQQ, IWY, ONEQ, and VONG. This article evaluates all five ETFs, but concludes that SCHG's valuation is justified.
- Still, several of SCHG's constituents are trading near their 52-week high prices, and recent earnings surprise figures suggest recent price action is not warranted. The theme of this analysis is risk management.
- Investors utilizing SCHG to satisfy the growth component of their portfolio should hold. However, I don't recommend overweighting growth at these prices.
Investment Thesis
Over the last ten years, the Schwab U.S. Large-Cap Growth ETF ( SCHG ) was the third-best-performing fund in its category, trailing only the Invesco QQQ ETF ( QQQ ) and the iShares Russell Top 200 Growth ETF ( IWY ). SCHG also ranked #4/37 over the last three calendar years and #4/36 over the previous five, so based on past performance, there's no argument. SCHG has delivered exceptional returns. ...
SCHG: Comparison Against 4 Leading Large-Cap Growth ETFs