How do the expense ratios of CGDV and SCHG compare?

CGDV carries an expense ratio of 0.33%, whereas SCHG has a significantly lower expense ratio of 0.04%. This means SCHG costs 0.29 percentage points less annually. Over time, this fee difference can influence net returns, particularly in scenarios with modest growth. Lower expenses generally retain more capital for compounding, though they do not guarantee superior performance. Investors often assess these costs relative to their time horizon and expected returns.

What type of market exposure do CGDV and SCHG offer?

SCHG is categorised as a Large Growth fund, targeting companies anticipated to grow earnings at above-average rates. Conversely, CGDV is labelled as Large Value, which typically focuses on established firms with strong fundamentals that might be undervalued relative to peers. While both focus on large-cap US stocks, their core strategies differ: one prioritises potential expansion while the other seeks value recovery or steady income characteristics.

How do top holding concentrations differ between the two funds?

Both funds concentrate heavily on technology, but SCHG shows a higher degree of concentration in growth-specific names. SCHG's top holding is NVDA at 10.67%, followed by AAPL at 9.94%. CGDV holds NVDA at 6.56% and MSFT at 7.59%. Notably, CGDV includes industrial names like RTX and GE, whereas SCHG remains purely tech and healthcare-heavy. This indicates SCHG is more aggressive in growth sector weighting compared to CGDV's broader value orientation.

Which investing goal is SCHG typically associated with?

SCHG is commonly associated with capital appreciation through exposure to established US large-cap companies with high growth potential. Due to its low expense ratio and focus on growth sectors, investors often utilise it to capture long-term market trends without heavy income distributions. Its strategy aligns with goals prioritising total return via share price appreciation rather than immediate cash flow, making it suitable for those seeking growth exposure within the US equity market.

How might active management in CGDV affect portfolio composition?

CGDV employs active management, allowing its team to deviate from standard index weights to select holdings they deem attractive. This flexibility enables the fund to incorporate companies like RTX and RCL, which are absent in SCHG's top ten. Active management aims to capture value opportunities that might be overlooked by passive tracking, though it comes with a higher expense ratio to pay for the management team's research and decision-making processes.

How do the dividend yields of CGDV and SCHG compare?

CGDV offers a dividend yield of 1.17%, which is notably higher than SCHG's 0.36%. This reflects CGDV's value orientation, which often favours mature companies with stable cash flows suitable for distribution. SCHG's lower yield is typical of growth funds, where companies usually reinvest earnings for expansion rather than paying them out. Investors focusing on income might prefer the higher yield, while those seeking total return may not prioritise this difference.

How does market concentration in SCHG present potential risks?

SCHG exhibits significant concentration in technology and growth stocks, with its top ten holdings dominating the portfolio. Heavy weights in NVDA, AAPL, and MSFT mean its performance is closely tied to the tech sector's health. If growth valuations contract or the tech sector faces regulatory or economic headwinds, SCHG may experience greater volatility. This passive structure provides no downside protection or sector rotation capability during market shifts away from growth equities.

Is the higher yield of CGDV sufficient for income strategies?

While CGDV yields 1.17%, this figure remains modest compared to dedicated income funds. For investors relying on dividends, this yield might not generate substantial cash flow from a standard portfolio allocation. The yield supports a conservative income angle, but the fund's primary classification as a Large Value ETF suggests capital stability and value recovery are its core aims. Those needing higher distributions may find this yield lower than necessary.

What role do inception dates play in comparing these ETFs?

SCHG has been available since 2009, offering a long history of tracking US large-cap growth. CGDV launched in February 2022, providing a shorter operational record. This difference means SCHG has weathered more market cycles, including various recessions and recoveries. While recent performance for CGDV is accessible, the shorter timeline may limit the ability to assess how its active value strategy performs across diverse, long-term market environments compared to the established passive structure of SCHG.

Does fund size influence liquidity for these ETFs?

Both funds manage substantial assets, which generally supports strong liquidity. SCHG holds $65.9 billion, and CGDV holds $38.3 billion. Large asset bases typically result in tighter bid-ask spreads and greater trading volume, making it easier to buy or sell shares without significant price impact. For investors, this high liquidity means executing orders efficiently is feasible for both funds, reducing the concern over transaction costs during normal market conditions.

CGDV vs SCHG

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare the Capital Group Dividend Value ETF (CGDV) and the Schwab US Large-Cap Growth ETF (SCHG). This page examines their fee structures, top holdings, dividend yields, and how each fund tracks its target market to help you understand their differences. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

CGDV

Metric

SCHG

0.33%

Expense Ratio

0.04%

1.17%

Dividend Yield

0.36%

$38.26B

Net Assets

$65.89B

Holdings

196

Feb 22, 2022

Inception Date

Dec 11, 2009

–

Index Tracked

–

Large Value

Fund Category

Large Growth

SCHG costs about $29.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	CGDV	SCHG
MSFTMicrosoft Corporation	7.59%	7.42%
NVDANVIDIA Corporation	6.56%	10.67%
METAMeta Platforms, Inc.	5.06%	3.01%
AVGOBroadcom Inc.	4.60%	3.30%
GOOGLAlphabet Inc.	3.73%	4.09%

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Investment Analysis

CGDV

Pros

High assets under management suggest strong liquidity and market interest.
Large net assets support potential lower bid-ask spreads during trading.
Active management by Capital Group may offer flexibility beyond index constraints.

Considerations

Moderate expense ratio of 0.33 percent exceeds many index ETFs.
Top holdings are heavily concentrated in technology and growth stocks.
Relative dividend yield of 1.17 percent may not suit income-focused investors.

SCHG

Pros

Expense ratio of 0.04 percent offers cost-effective large-cap growth exposure.
Very large net assets ensure high liquidity for active trading.
Long track record since 2009 provides substantial historical performance data.

Considerations

Low dividend yield of 0.36 percent limits regular income distribution.
Highest ten holdings dominate portfolio with large technology company exposures.
Passive tracking may underperform during value rotation or economic downturns.

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About CGDV and SCHG

CGDV (CGDV)

The Capital Group Dividend Value ETF (CGDV) is a large-cap value fund designed to provide investors with exposure to dividend-paying companies. Launched in February 2022, it holds a concentrated portfolio of 59 positions, focusing on established firms with potential for income and value appreciation. The fund carries an expense ratio of 0.33%, which is moderate for an actively managed ETF strategy. With net assets of USD 38.26 billion, it offers substantial liquidity. Investors should note its current dividend yield of 1.17%, which provides modest income compared to high-yield sectors. As with all value strategies, performance can vary significantly depending on market cycles and economic conditions. It is important to remember that capital values can rise as well as fall, and dividends are not guaranteed. This fund suits those looking for a balanced approach to large-cap value investing within an ETF wrapper, but thorough personal research is always recommended before making any investment decisions.

SCHG (SCHG)

SCHG (Schwab US Large‑Cap Growth ETF) is an exchange‑traded fund that offers investors low‑cost exposure to US large‑capitalisation companies exhibiting growth characteristics. It tracks a large‑cap growth index and typically holds companies with higher expected earnings growth, often leading to heavier weights in technology and other growth‑oriented sectors. As an ETF, SCHG provides intraday liquidity, diversification across dozens to hundreds of stocks and a transparent holdings profile. Costs are generally lower than many active funds, but investors should note that growth‑style funds can be more volatile than broad‑market or value strategies and that past performance is not a guide to future returns. SCHG can serve as a growth sleeve within a broader portfolio but may not suit investors seeking high income or very low volatility. This information is educational and not personalised advice; consider your risk tolerance, investment horizon and the role of style and geographic diversification before investing.

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CGDV vs SCHG

Fund Snapshot