SCHG Owns More Apple Than Tesla, Meta and Palantir Combined. Is That Why Growth Investors Are Falling Behind?
The Schwab U.S. Large-Cap Growth ETF (SCHG) has significant holdings in NVIDIA (11.01%), Apple (9.83%), and Microsoft (7.17%), totaling nearly a third of the fund. SCHG has underperformed the SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) year-to-date, with returns of 10.12%. The fund's concentration in mega-cap stocks and its indexing methodology contribute to this underperformance. Investors seeking broader market exposure may prefer QQQ or SPY.
How this was made
The 30-second read
Why it matters
No new corporate events; the piece serves as a performance and concentration analysis of a growth ETF.
Market read
Provides investors with perspective on why SCHG lagged benchmarks, useful for allocation decisions.
What to watch
Potential upcoming earnings or product launches for the top holdings could shift the fund's performance dynamics.
Background
The article reviews SCHG's holdings, performance versus benchmarks, and compares it to VUG and QQQ.
Ticker impact
Apple accounts for 9.83% of SCHG and rose 21.06% YTD.
Limited direct impact; reinforces bullish view on Apple.
Apple's price move is already known; article only recaps.
NVDA is SCHG's largest holding at 11.01% and rose 22.64% YTD.
No new catalyst; maintains current bullish sentiment.
Article repeats known NVDA gains.
Microsoft holds 7.17% of SCHG and returned 6.15% YTD.
Minor effect on Microsoft price; mainly context.
No new information beyond existing performance data.
Tesla is a 3.91% holding in SCHG and is down 16.31% YTD.
No fresh catalyst; reflects existing downside.
Recap of known price move.
Meta makes up 3.45% of SCHG and is part of the concentration analysis.
No direct impact.
Only contextual mention.
Palantir is capped at 1.25% in SCHG despite 92.83% revenue growth.
No immediate effect on PLTR price.
Article repeats known cap and growth figures.
Market effects
Highlights concentration risk in large‑cap growth ETFs, may prompt investors to consider broader or more focused funds.
U.S. equity investors evaluating growth‑focused ETFs may adjust allocations.
Limited; primarily U.S. ETF and large‑cap tech exposure.
Counterpoint
Investors could view the concentration as an opportunity to overweight the top holdings directly rather than via SCHG.
Key entities
- ETFSCHG
Schwab U.S. Large-Cap Growth ETF
- CompanyApple
Top holding in SCHG
- CompanyNVIDIA
Largest holding in SCHG
