SCHG ETF

Investing in growth exchange-traded funds (ETFs) can be a great way to increase your wealth, and it requires less time and effort compared to purchasing individual stocks.

This ETF has almost outperformed the S&P 500 by two times since 2009. Discover how investing $200 each month could grow to $1.3 million.

The Schwab U.S. Large-Cap Growth ETF gives investors access to major large-cap companies that are likely to gain from the rising demand for AI. With a focus on technology, its top investments include Apple, Microsoft, and NVIDIA, which contribute to its strong performance but also create some risks due to concentration. Lower interest rates and developments in AI are important factors for SCHG's growth, making it a solid long-term investment even with possible fluctuations in the tech sector.

The Schwab U.S. Large-Cap Growth ETF is an attractive option because it targets major U.S. companies with solid fundamentals. Artificial intelligence is a significant global trend projected to grow to $1.8 trillion by 2030, with U.S. firms like Nvidia, Broadcom, Microsoft, Google, Amazon, and Tesla at the forefront. With 50% of its investments in the Technology sector and a strong track record, this ETF outperforms both its competitors and the S&P 500 Index.

Schwab Asset Management conducted stock splits for 20 ETFs, with October 11th being the first day each ETF is trading at its split-adjusted price.

The Schwab U.S. Large-Cap Growth ETF offers strong historical returns and aggressive Mag 7 exposure. With a 48.7% IT sector weighting and a 0.04% expense ratio, SCHG is positioned for significant growth, despite potential tech sector volatility. The Schwab U.S. Large-Cap Growth ETF has outperformed the Vanguard Growth ETF, delivering a 148.7% return over five years.

SCHG is poised for growth due to the Fed cutting rates, which benefits growth stocks by reducing borrowing costs and stimulating economic activity. After the advent of ChatGPT in November of 2022, AI adoption is in the growth phase, with SCHG holdings like Microsoft, Amazon, and Alphabet driving corporate and consumer AI integration. There is also Apple with its iPhones to allow millions to access super smart apps.

Growth investing has thrived due to tech dominance; Schwab U.S. Large-Cap Growth ETF offers broad exposure to this sector with low fees. SCHG's top five holdings—Apple, Microsoft, Nvidia, Amazon, and Meta—comprise 44.5% of assets, posing significant concentration risk. The fund's heavy tech focus can lead to volatility in downturns, making it vulnerable despite its strong performance history.

The SCHG ETF has delivered an impressive 10-year average annual total return of 16.3% and charges an expense fee of only 0.04%. SCHG ETF offers concentrated exposure to the top cash-rich Tech companies that have strong global brands, generate excellent free-cash-flow, and are well positioned to monetize AI. Apple and Microsoft are the top-two holdings and equate to ~23.5% of the entire portfolio. Nvidia, Amazon, and Google equate to another 23.5% of the fund.