What are the expense ratios of SCHG and VUG, and why do they matter?

SCHG has an expense ratio of 0.04%, while VUG’s is 0.03%. This 0.01 percentage point difference is minimal but can affect long-term returns due to compounding. Over decades, even small fee reductions allow more of an investment's growth to remain untouched. Both funds are low-cost options for large growth exposure, making fees a secondary consideration compared to structural and strategic differences.

How do expense ratios influence ETF net returns over time?

Expense ratios are annual fees deducted from an ETF’s assets. While SCHG charges 0.04% and VUG 0.03%, the immediate impact on net returns is slight. However, these fees compound over years. Investors comparing these funds should note that such minor differences are negligible next to market fluctuations or portfolio composition changes, especially given both are among the lowest-cost growth ETFs available.

Which fund tracks the S&P 500 Growth Index, and how does it differ from the other?

Neither SCHG nor VUG specifies the index tracked, so direct comparison is limited. Both focus on US large-cap growth stocks, with shared top holdings like NVDA, AAPL and MSFT. Their strategies likely mirror similar market segments, but without confirmed benchmark details, investors must rely on holdings, expense ratios, and net assets to infer exposure and structural similarities.

How similar are the top holdings in SCHG and VUG?

SCHG and VUG share eight of their top 10 holdings: NVDA, AAPL, MSFT, AMZN, GOOGL, AVGO, GOOG and META. Both also include LLY. The primary difference is in weighting and the tenth holding: SCHG includes AMD at 2.76%, whereas VUG includes TSLA at 2.79%. This high degree of overlap suggests nearly identical market exposure despite fund structure differences.

What do the top 10 concentration levels imply about each fund’s risk profile?

SCHG’s top 10 holdings constitute a moderate share of its portfolio, allowing diversified growth exposure. VUG’s top 10 positions, including NVDA at 13.62% and AAPL at 12.49%, indicate slightly higher concentration. This may amplify the impact of performance from mega-cap tech firms. Both funds are inherently volatile due to growth orientation, but VUG’s higher weighting in leading stocks could intensify sector sensitivity.

What does dividend yield tell investors about SCHG and VUG?

SCHG has a dividend yield of 0.36%, while VUG offers 0.37%. These yields are low, consistent with growth-focused ETFs that reinvest earnings rather than distribute dividends. The 0.01% difference is negligible for income-focused evaluation. Both funds are better assessed on capital appreciation potential and portfolio structure than on regular payouts.

How does net asset size affect liquidity and trading for SCHG and VUG?

VUG has $232.1 billion in net assets, compared to SCHG’s $65.9 billion. Both are highly liquid, with tight bid-ask spreads typical of major ETFs. VUG’s larger size may support institutional trading but could also reduce portfolio agility. SCHG’s smaller scale might allow quicker adjustments if holdings change, though both remain efficient for retail investors.

Why does SCHG have a newer inception date than VUG?

SCHG launched on December 11, 2009, during a period of growing ETF adoption for active-style index investing. VUG has existed since January 26, 2004, giving it a longer track record and established investor base. SCHG’s later start reflects Schwab’s expansion into the ETF market but does not imply lower quality or performance, as both funds track the same broad market segment.

Should investors choose VUG over SCHG based solely on expense ratio?

No. While VUG has a 0.01% lower expense ratio, this difference is minimal and unlikely to affect returns significantly over time. Other factors such as dividend yield (0.37% vs. 0.36%), fund size, inception history, and top holdings structure must be weighed. Since both funds are large and track the same growth segment, fee alone is an insufficient basis for decision-making.

What structural differences exist between SCHG and VUG?

Both are passive ETFs tracking US large-cap growth. VUG is larger with $232.1 billion in assets and has been available since 2004, while SCHG launched in 2009 with $65.9 billion. VUG has a marginally higher expense ratio advantage at 0.03% and includes TSLA in its top 10, whereas SCHG includes AMD. These structural differences may influence rebalancing frequency and tax efficiency, though both remain similar in objective.

SCHG vs VUG

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

Compare SCHG (Schwab US Large-Cap Growth ETF) and VUG (Vanguard US Growth ETF). This page examines their expense ratios of 0.04% and 0.03%, net assets, dividend yields, and top holdings like NVDA and AAPL. See how each fund tracks the large growth market and their structural differences. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHG

Metric

VUG

0.04%

Expense Ratio

0.03%

0.36%

Dividend Yield

0.37%

$65.89B

Net Assets

$232.11B

196

Holdings

151

Dec 11, 2009

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Growth

Fund Category

Large Growth

VUG costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	SCHG	VUG
NVDANVIDIA Corporation	10.67%	13.62%
AAPLApple Inc.	9.94%	12.49%
MSFTMicrosoft Corporation	7.42%	10.12%
AMZNAmazon.com, Inc.	4.93%	4.76%
GOOGLAlphabet Inc.	4.09%	5.34%
AVGOBroadcom Inc.	3.30%	4.10%
GOOGAlphabet Inc.	3.26%	4.21%
METAMeta Platforms, Inc.	3.01%	3.39%
LLYEli Lilly and Company	2.94%	2.64%

Discover More Comparisons

SCHG vs VOO

Compare SCHG and VOO: 0.04% vs 0.03% expense ratio, large-cap growth vs the S&P 500, 196 vs 516 holdings, and a 0.37% vs 1.04% dividend yield.

SCHG vs SCHX

SCHG vs SCHX compared: large-cap growth at 0.04% or the full large-cap market at 0.03%. See fees, holdings overlap, yields and fund size side by side.

SCHG vs SPMO

Compare SCHG and SPMO. Review expense ratios, dividend yields, and shared holdings like NVDA. Understand differences between growth and momentum strategies.

Investment Analysis

SCHG

Pros

A lower expense ratio of 0.04% reduces investor costs.
The fund is relatively new, offering up-to-date portfolio composition.
Moderate asset concentration in top ten holdings allows for potential higher upside.

Considerations

The inception date is older, indicating a longer track record.
Net assets of $65.9 billion are smaller, which might mean less liquidity.
The dividend yield of 0.36% is slightly lower compared to VUG.

VUG

Pros

A higher dividend yield of 0.37% provides better income.
The fund has a much longer history, established in January 2004.
The top ten holdings have a higher concentration, offering potential for stronger market leadership.

Considerations

The expense ratio of 0.03% is lower, but the fund may not be as cost-effective.
The net assets of $232.1 billion could make the fund less flexible to adjust its portfolio.
There is no specific information available on the index tracked, which could make tracking the fund's performance harder to evaluate.

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

Related Market Insights

Capital Returns: The Shareholder Yield Play

Explore Capital Returns, a Neme focused on companies rewarding shareholders via buybacks & dividends. Invest in robust firms like Schwab with Nemo's thematic baskets.

Aimee Silverwood | Financial Analyst

25 July 2025

Read Insight

About SCHG and VUG

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.

VUG (VUG)

This exchange-traded fund aims to track the performance of large-capitalisation U.S. companies classified as growth stocks. It generally holds shares of businesses expected to expand faster than the broader market, often focusing on sectors like information technology and consumer discretionary. The fund maintains a low expense ratio, which helps preserve investor returns over time. While growth stocks can offer significant capital appreciation during favourable economic conditions, they may also experience higher volatility and sharper declines when market sentiment shifts or interest rates rise. With over 150 holdings, the fund provides diversified exposure to leading U.S. growth firms. Investors should note that past performance is not indicative of future results, and values can go down as well as up. The fund pays a modest dividend yield, but its primary objective remains capital growth rather than income generation. It is suitable for those seeking long-term exposure to the growth segment of the U.S. equity market.

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

Published: 25 July 2025

Explore Basket

Which Baskets Do They Appear In?

Capital Returns: The Shareholder Yield Play

Published: 25 July 2025

Explore Basket

Buy SCHG or VUG in Nemo

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

SCHG vs VUG

Fund Snapshot