SCHG

The Schwab U.S. Large-Cap Growth ETF (SCHG) is an exchange-traded fund that seeks to track the performance of an index composed of large-cap U.S. growth stocks. The ETF is managed by Charles Schwab Investment Management, Inc. and trades under the ticker SCHG on NYSE Arca.

Classified as a U.S. large-cap growth equity ETF, SCHG aims to reflect, before fees and expenses, the aggregated performance of the stocks included in its benchmark index. 

To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio designed to replicate the composition and weighting of a market index comprised of companies exhibiting sustained growth in revenue and earnings.

SCHG’s benchmark index consists of large-cap U.S. companies selected based on fundamental growth criteria, such as earnings growth, revenue expansion, and valuation metrics, weighted by float-adjusted market capitalization. 

Diversification and sector exposure

SCHG provides broad exposure to the U.S. growth equity market, encompassing large-cap companies across several key sectors, including:

• Information technology.

• Health care.

• Consumer discretionary.

• Communication services.

• Industrials.

This sector diversification enables the ETF to represent those segments that have traditionally driven economic growth and stock price appreciation in the United States.

Structure and costs

Shares of SCHG are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries a low and competitive expense ratio, typical of passively managed ETFs, and does not charge a performance fee. SCHG may make periodic income distributions, derived from dividends paid by the underlying stocks, although its primary focus is on capital appreciation. 

The ETF has a single share class and trades exclusively under the ticker SCHG.

History and evolution of the ETF

The Schwab U.S. Large-Cap Growth ETF was launched in 2011, amid the growing adoption of ETFs as efficient vehicles for accessing specific segments of the U.S. equity market, particularly in growth-oriented strategies.

Since its launch, SCHG has been incorporated into institutional and individual investment strategies seeking exposure to the large-cap growth segment.

Between 2020 and 2024, the ETF reflected market movements characterized by appreciation cycles in technology and growth sectors, shifts in monetary policy, and varying phases of investor preference between growth and value stocks, while maintaining liquidity consistent with its structure as a listed ETF.