SCHG vs. VUG: Here's How to Decide on the Right Growth ETF for Your Portfolio

• Both funds complaint the aforesaid debased disbursal ratio and connection astir identical dividend yields.

• VUG has delivered a higher one-year return, portion SCHG showed somewhat little volatility and a shallower drawdown.

• While some funds are heavy tilted toward technology, SCHG is somewhat broader and much diversified.

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The Vanguard Growth ETF (NYSEMKT:VUG) and the Schwab U.S. Large-Cap Growth ETF (NYSEMKT:SCHG) some purpose to supply vulnerability to the maturation conception of large-cap U.S. stocks, tracking somewhat antithetic indexes with dense exertion tilts.

This investigation compares the 2 connected cost, performance, risk, and portfolio constitution to assistance investors determine which whitethorn amended acceptable their needs.

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

Both ETFs are arsenic affordable connected fees, charging a 0.04% disbursal ratio. With astir identical dividend yields arsenic well, neither stands retired successful presumption of outgo oregon payout.

SCHG holds 198 companies, offering vulnerability to U.S. large-cap growth. Its portfolio is comprised of 45% exertion stocks, 16% connection services, and 13% user cyclical, with apical positions successful Nvidia, Apple, and Microsoft.

VUG, by contrast, holds 160 stocks with an adjacent heavier tilt toward exertion astatine 51%, followed by connection services and user cyclical. Its largest holdings reflector SCHG, but each banal makes up a somewhat larger information of the portfolio. Neither money introduces leverage, currency hedging, oregon ESG screens.

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SCHG and VUG some seizure the large-cap maturation conception of the market, but they disagree successful their scope and diversification.

VUG is somewhat narrower successful focus, with less holdings and a stronger tilt toward tech stocks. The 2 funds stock the aforesaid apical 3 stocks, but they marque up 32% of VUG's portfolio compared to 29% for SCHG. While it's a subtle difference, it tin effect successful somewhat antithetic returns if those apical holdings over- oregon underperform going forward.

VUG's heavier tech allocation tin besides pb to greater volatility. It's experienced marginally steeper drawdowns implicit the past 5 years, and its somewhat higher beta besides suggests much important terms fluctuations.