What is the difference between growth and value ETFs?

Growth ETFs typically invest in companies expected to grow earnings faster than the average market, often prioritising capital appreciation over dividends. Value ETFs focus on companies perceived as undervalued relative to their fundamentals, often seeking to profit from the gap between market price and intrinsic value. These strategies represent different approaches to the stock market, each with distinct risk and return profiles depending on economic conditions and investor expectations.

What does an expense ratio mean for ETF investors?

The expense ratio represents the annual fee charged by the fund to cover operational costs, such as management and administration. It is deducted directly from the fund's assets, thereby reducing the net return to shareholders. Even small differences in expense ratios can compound significantly over long periods, affecting total investment growth. Investors should consider these costs alongside performance history and fund structure when evaluating ETFs for their portfolios.

How do ETF dividend yields work?

Dividend yield indicates the annualised income generated by an ETF relative to its current price. Unlike stock dividends, ETFs may accumulate dividends from underlying holdings before distributing them to shareholders, usually on a quarterly basis. A higher yield often correlates with more mature companies focused on returning cash, while lower yields may suggest reinvestment into growth opportunities. Yields can fluctuate based on market conditions and corporate payout policies.

How do the expense ratios of SCHG and SCHV compare?

Both SCHG and SCHV share an identical low expense ratio of 0.04%. This means their cost structures are equivalent regarding annual fees relative to assets. Since there is no difference in percentage points, the fee impact over time would theoretically be the same for both funds, assuming all other factors remain equal. The primary differentiator becomes the underlying investment strategy rather than cost efficiency.

How do the top holdings differ between these two funds?

SCHG holds major technology and growth companies, with Nvidia at 10.67% and Apple at 9.94%. In contrast, SCHV focuses on large-cap value stocks like Micron Technology at 3.52% and JPMorgan Chase at 2.99%. Notably, there are no shared top ten holdings between the two funds. This distinct separation confirms that each ETF provides unique exposure to different segments of the large-cap US market.

Which fund offers a higher dividend yield?

SCHV provides a higher dividend yield of 1.79% compared to SCHG's 0.36%. This reflects the nature of value stocks, which often belong to established companies with stable cash flows and regular distributions. Growth-oriented stocks, as seen in SCHG, typically reinvest earnings rather than paying dividends. Investors seeking income might prefer the characteristics of SCHV, while those prioritising capital appreciation may look to SCHG.

What are the concentration risks in SCHG?

SCHG exhibits significant concentration in its top holdings, with Nvidia alone comprising 10.67% and the top two positions exceeding 20% of the fund. This level of concentration means performance is heavily influenced by the success of a few large technology firms. If these specific companies underperform, the fund's overall returns could suffer disproportionately compared to a more broadly diversified index fund.

What are the limitations of SCHV's top holdings?

SCHV's top holdings are more evenly distributed, with the largest position at just 3.52%. While this offers better diversification within the top ten, it may limit the upside potential from any single winning stock. This structure reflects a broader basket of value stocks rather than relying on a few key performers. Investors seeking high-impact growth from specific companies may find this approach less potent than concentrated portfolios.

How do liquidity levels compare between the funds?

SCHG has significantly higher net assets of $65.9 billion compared to SCHV's $16.9 billion. Greater net assets often correlate with higher trading volumes and tighter bid-ask spreads, enhancing liquidity for participants. While SCHV remains a large fund, its smaller size relative to SCHG might imply less intense trading activity at certain times, potentially affecting execution ease for very large institutional orders.

Are sector weights available for these ETFs?

Detailed sector weightings are not available in the provided data for either SCHG or SCHV. Without this information, it is difficult to assess diversification across industries or identify potential concentration risks in sectors like technology, finance, or energy. Investors relying on sector allocation strategies should seek additional data sources to fully understand how these funds distribute their assets across the economic landscape.

How might an investor combine these funds?

Some investors choose to hold both growth and value ETFs to capture different phases of market cycles. By allocating to both SCHG and SCHV, an investor maintains exposure to high-growth tech leaders and established value companies simultaneously. This strategy does not eliminate risk but may provide balance, as the two styles often perform differently depending on economic conditions and investor sentiment towards various stock types.

What should beginners check before investing?

Beginners should verify the fund's inception date, expense ratio, and top holdings to understand its history and cost structure. Checking the dividend yield helps align the investment with income needs or growth goals. Reviewing net assets provides insight into liquidity and fund stability. These factors, combined with an understanding of the underlying index strategy, form a solid foundation for making informed decisions about adding these ETFs to a portfolio.

SCHG vs SCHV

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

Compare Schwab US Large-Cap Growth ETF (SCHG) and Schwab US Large-Cap Value ETF (SCHV). Review fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHG

Metric

SCHV

0.04%

Expense Ratio

0.04%

0.36%

Dividend Yield

1.79%

$65.89B

Net Assets

$16.91B

196

Holdings

559

Dec 11, 2009

Inception Date

Dec 11, 2009

–

Index Tracked

–

Large Growth

Fund Category

Large Value

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHG

Pros

funds offer a competitive expense ratio of 0.04%, ensuring minimal impact on long-term net returns for investors.
the fund's substantial net assets of $65.9 billion provide deep liquidity and robust market trading volumes for participants.
investors gain exposure to leading technology companies, including NVDA at 10.67% and AAPL at 9.94%, driving potential growth.

Considerations

the dividend yield of 0.36% provides limited income, making it less suitable for those seeking regular cash payouts.
top holdings exhibit significant concentration, with the largest position at 10.67% and the top two exceeding 20%.
sector weights are not available in the provided data, hindering a comprehensive assessment of diversification across industries.

SCHV

Pros

the fund maintains a low expense ratio of 0.04%, supporting cost-efficient access to the US large-cap value segment.
a dividend yield of 1.79% offers attractive income potential compared to growth-oriented funds, catering to income-focused investors.
holdings include established value leaders like MU at 3.52% and JPM at 2.99%, providing exposure to undervalued sectors.

Considerations

net assets of $16.9 billion are smaller than the growth counterpart, potentially implying less intense trading activity at times.
top holdings show diversification but lack significant weightings, with the largest position at 3.52%, which may limit impact of winners.
sector weights are not available, preventing analysis of industry diversification or concentration in areas like finance or energy.

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About SCHG and SCHV

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.

SCHV (SCHV)

SCHV (Schwab US Large‑Cap Value ETF) is an exchange‑traded fund that seeks to track the Dow Jones U.S. Large‑Cap Value Total Stock Market Index, providing diversified exposure to large‑capitalisation U.S. companies classified as value stocks. Managed by Charles Schwab, the ETF is designed for passive, cost‑efficient investing and typically offers regular income through dividends. It can serve as a way to tilt a portfolio toward value characteristics—such as lower valuation multiples or higher dividend yields—rather than growth. Investors should note that ETFs are pooled instruments (so a single market‑cap figure for the ETF itself is not applicable in the same way as for a company), and performance depends on the underlying index and market conditions. Value styles can underperform growth for extended periods and returns are not guaranteed. This summary is educational only and not personalised financial advice; suitability depends on individual objectives and risk tolerance.

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SCHG vs SCHV

Fund Snapshot