SCHG ETF Holds Near Highs as Growth Stocks Regain Momentum in 2025

Associated Press

6 hours ago

Increased inflows, tech leadership, and low-cost structure keep Schwab's large-cap growth ETF in investor focus
NEW YORK, NY, UNITED STATES, June 26, 2025 / EINPresswire.com / -- The Schwab U.S. Large-Cap Growth ETF ( NYSEARCA: SCHG ) is trading near its 52-week high as large-cap growth stocks benefit from improving market conditions. SCHG stock closed at approximately $28.54 on June 24, 2025, just below its peak of $29.14, supported by gains in technology and consumer-facing sectors.
The ETF has posted a trailing 12-month return of roughly 15%, driven by gains in mega-cap names such as Microsoft, Apple, and NVIDIA. With over $43 billion in assets under management, SCHG is one of the most widely held growth ETFs in the market today.
Performance Strengthens Amid Favorable Economic Shifts
After a volatile first quarter, SCHG has staged a consistent recovery. Macroeconomic data showing declining inflation and a Federal Reserve pause on rate hikes contributed to a renewed bid for growth equities. SCHG rose over 10% during April and May, with technology and communication services sectors leading the advance.
Year-to-date, SCHG is up approximately 2.5%, slightly trailing peers like Vanguard Growth ETF (VUG, ~4.5% YTD) and Invesco QQQ (~5.9% YTD). Still, SCHG's structure and sector exposures have positioned it for steady long-term returns. Over the past year, its performance closely matches the broader growth segment.
Inflow Activity Highlights Growing Demand
SCHG has recorded robust inflows in 2025, totaling approximately $3.6 billion year-to-date through April. Notably, nearly $2 billion was added in April alone, coinciding with increased volatility in equity markets. As of late June, the fund's AUM stands at approximately $43 billion, up from $35 billion a year ago.
These inflows reflect increasing investor confidence in growth sectors and the fund's competitive cost structure. SCHG ranks among the top ETF choices for cost-sensitive investors looking to maintain broad exposure to U.S. growth equities.
Technology Holdings Remain Dominant
SCHG's top holdings are weighted heavily toward mega-cap technology firms. Microsoft, NVIDIA, and Apple account for over 30% of the portfolio. Other leading positions include Amazon, Alphabet, Meta Platforms, Broadcom, and Tesla.
The ETF currently holds around 230 stocks, with its top 10 holdings comprising roughly 57% of total assets. This structure emphasizes the primary drivers of large-cap growth returns while maintaining diversified exposure across growth-linked sectors.
Sector allocations include Information Technology (~45%), Communication Services (~13%), Consumer Discretionary (~13%), and Health Care (~10%). SCHG also has modest allocations to Financials, Industrials, and other areas based on the growth classification of its constituents.
Index-Driven Adjustments Reflect Market Changes
SCHG tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. The fund is rebalanced periodically to reflect changes in earnings growth, revenue forecasts, and market capitalization. Recent additions to the portfolio include names like Palantir Technologies and GE Aerospace, following their emergence as qualifying growth stocks.
In October 2024, SCHG underwent a 4-for-1 share split to enhance accessibility and trading efficiency. The change did not alter the fund's composition or valuation.
Cost Advantage Supports Long-Term Appeal
SCHG charges a 0.04% annual expense ratio, among the lowest in the ETF industry. This makes it a cost-effective vehicle for gaining exposure to the U.S. growth equity space. The fee compares favorably to the category average of approximately 0.37%.
The ETF's portfolio turnover is about 23.8%, consistent with index-based strategies. SCHG has not distributed capital gains in recent years, contributing to its appeal in taxable accounts. Its 12-month dividend yield is around 0.3%, as most holdings reinvest earnings rather than pay large dividends.
The ETF trades with strong liquidity, averaging 8–12 million shares daily. Bid-ask spreads typically remain below 0.04%, enabling efficient entry and exit for both institutional and retail investors.
Comparison with Peers: VUG and QQQ
SCHG compares favorably to its two primary competitors. Vanguard's Growth ETF (VUG) also charges 0.04% and holds a similar mix of top U.S. growth stocks. While VUG includes slightly more holdings (~280–300), SCHG's focused exposure to leading performers has kept performance in line over most periods.
Invesco's QQQ, which tracks the Nasdaq-100, is more concentrated with 100 stocks and a 0.20% fee. QQQ's tech tilt can offer outsized returns during tech rallies but brings greater volatility and less sector diversification. SCHG, by contrast, includes growth-oriented firms across sectors, including health care and select financials.
Overall, SCHG's balance of broad exposure, competitive cost, and high liquidity positions it as a reliable core holding for investors targeting large-cap U.S. growth stocks.
SCHG is available through all major brokerages, including digital platforms such as SoFi Invest, which has integrated the ETF into its portfolio-building tools. Accessibility through such channels has helped SCHG reach a broader base of long-term investors and retirement savers.
With minimal tracking error, tax efficiency, and deep liquidity, SCHG remains suitable for use in diversified portfolios, tax-deferred accounts, and tactical growth strategies.
Future Outlook
Heading into the second half of 2025, the outlook for large-cap growth remains stable. Inflation is trending lower, the rate policy appears neutral, and corporate earnings forecasts are holding. These dynamics support continued allocation to growth-focused equity products.
SCHG's combination of cost efficiency, strong liquidity, and exposure to innovation-led companies positions it to capture long-term gains in the U.S. equity market. As market sentiment continues to favor technology and consumer-linked sectors, SCHG is expected to remain a relevant option in growth allocations.
About SCHG
The Schwab U.S. Large-Cap Growth ETF (SCHG) launched in 2009 and is managed by Schwab Asset Management. It seeks to track the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. With over $43 billion in assets, SCHG is one of the most popular low-cost growth ETFs in the market.
www.schwabassetmanagement.com
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