SCHG ETF

SCHG is a highly successful ETF that follows the Dow Jones U.S. Large-Cap Growth Index and has a good history along with low fees. However, in 2025, it may face challenges such as slower earnings growth in large companies and competition from DeepSeek. Additionally, the top seven stocks in SCHG are experiencing weaker performance after earnings reports, suggesting possible changes in market sentiment.

When people think about investing in the stock market, they usually envision looking into specific companies and purchasing their stocks one by one. With sufficient time and effort, you can create a diverse portfolio that includes several different stocks.

Investors are facing difficult choices for the upcoming year, as the S&P 500 experiences a small decline. Meanwhile, the Nasdaq 100, which is heavily focused on growth and technology, is seeing a more significant drop. At the same time, Treasury yields are rising as prices decrease.

The Schwab U.S. Large-Cap Growth ETF provides a technology-focused investment option with low costs and good chances for long-term returns while managing risk. I had previously recommended this ETF as a buy because of its appealing tech investments and growth potential, particularly with AI expected to boost performance in 2025. Foxconn's recent revenue report indicates that the AI trend is still strong, which should positively impact the Schwab U.S. Large-Cap Growth ETF.

Are you planning to begin your investing journey in 2025? Exchange-traded funds (ETFs) can be an excellent option since they provide a diverse range of top stocks in a single, easy-to-manage investment. Consider these three top ETFs as you start: the Schwab U.S. Large-Cap Growth ETF (SCHG), the Schwab U.S. Dividend Equity ETF (SCHD), and the Invesco QQQ Trust (QQQ), all of which give you access to a variety of strong stocks.

SCHG is a great choice for investors looking for large-cap growth stocks, but there is one important issue to consider.

The SCHG ETF benefits significantly from technology firms, and along with the S&P 500, it has provided good returns for investors. However, forecasts suggest that the risk premium is falling, and there are concerns about prices and profit margins. Additionally, the valuation compared to European counterparts, which was quite similar until 2021, has suddenly risen.

SCHG provides impressive long-term returns, closely following its benchmark, with a 139% cumulative return over five years, which is almost the same as QQQ. The fund is heavily invested in technology, with its largest holdings being Apple, Nvidia, and Microsoft, which account for about 34% of its assets. While Schwab U.S. Large-Cap Growth ETF has lower management fees (0.04%) than QQQ, it also has a lower yield (0.38%), resulting in similar overall returns.

Putting your money into a growth ETF can be a clever way to enhance your investment portfolio without much hassle. A growth ETF consists of a selection of stocks that are likely to provide better-than-average returns, all combined into one investment option.