AVUV - SCHG: Growth Isn't Slowing Down Value Isn't Catching Up
2024-05-10 13:20:27 ET
Summary
- The Schwab U.S. Large-Cap Growth ETF seeks to capitalize on the growth and size factors, contributing to its outperformance of the broad market.
- The ETF has capitalized on a paradigm shift away from the value and size factors, which have underperformed since 2008.
- This article discusses SCHG's use of factors, as well as its suitability for investors and its place in a portfolio.
Introduction
The Schwab US Large-Cap Growth ETF ( SCHG ) seeks to capitalize on "factor investing," which is selecting investments based on certain criteria and behavior that the investments present. Specifically, for SCHG, it looks to capitalize on the market cap and value/growth factors by selecting companies (as the name of the fund implies) that are large-cap and exhibit the growth factor. More on that in a later section....
SCHG: Growth Isn't Slowing Down, Value Isn't Catching Up