Growth’s Glimmer: SCHG & VOOG Examined

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The discerning investor, adrift in a sea of exchange-traded funds, often finds oneself contemplating the subtle distinctions between vessels seemingly cut from the same cloth. Today, we turn our loupe toward two such contenders: the Vanguard S&P 500 Growth ETF (VOOG +0.07%) and the Schwab U.S. Large-Cap Growth ETF (SCHG 0.25%). Both, you see, offer access to the alluring world of large-cap American growth equities, yet their paths diverge with a delicacy that demands closer inspection. It’s a matter of nuance, a whisper of difference in the algorithms that define their holdings, a decimal point separating their expense ratios. A trifling matter, some might say. But to the truly attentive observer, such details are the very constellations by which we navigate the market’s capricious currents.

Let us, then, dissect these instruments, not with the bluntness of a statistician, but with the precision of a lepidopterist pinning a rare specimen. We shall observe their attributes, note their peculiarities, and attempt to discern which, if either, holds a greater appeal for the investor of refined sensibilities.

A Snapshot of Fiscal Form

Metric VOOG SCHG
Issuer Vanguard Schwab
Expense ratio 0.07% 0.04%
1-yr return (as of Jan. 17, 2026) 20.88% 15.90%
Dividend yield 0.49% 0.36%
Beta (5Y monthly) 1.08 1.17
AUM $22 billion $53 billion

The Schwab offering, SCHG, presents a marginally more economical proposition, its expense ratio a shade lower. VOOG, however, yields a slightly more generous dividend, a fleeting kiss of income. These differences, while quantifiable, are hardly seismic. To fixate upon them would be akin to arguing over the precise shade of grey in a dove’s wing. They are, in the grand scheme, negligible.

Performance & Risk: A Dance with Volatility

Metric VOOG SCHG
Max drawdown (5 y) -32.74% -34.59%
Growth of $1,000 over 5 years $1,965 $2,046

Observe the dance of risk and reward. Over the past five years, SCHG has demonstrated a slightly superior capacity for growth, transforming a modest $1,000 investment into $2,046, while VOOG yielded $1,965. The margin is slim, a whisper in the market’s roar. Both funds, however, have proven resilient in the face of adversity, weathering market storms with a degree of composure that would impress even the most stoic of investors. The maximum drawdown, a measure of the steepest decline, is remarkably similar, suggesting a comparable level of volatility.

Anatomy of a Portfolio: What Lies Within

SCHG casts its net wide, embracing a broad spectrum of large-cap growth stocks. Technology dominates, accounting for 45% of the portfolio, followed by communication services (16%) and consumer cyclicals (13%). It holds 198 stocks, a substantial collection, with Nvidia, Apple, and Microsoft anchoring its foundations. SCHG boasts a seasoned pedigree, having navigated the market’s currents for over sixteen years, free from the eccentricities that sometimes plague newer ETFs.

VOOG, in contrast, presents a more curated selection, holding 140 stocks. While its top holdings mirror those of SCHG, they constitute a slightly larger proportion of the portfolio. This concentration, while potentially amplifying gains, also introduces a degree of risk. It is a delicate balancing act, a matter of weighting probabilities and accepting the inherent uncertainties of the market.

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Implications for the Discerning Investor

VOOG and SCHG, both focused on large-cap growth equities, offer subtle variations in diversification. VOOG, with its more concentrated holdings, exhibits a slight bias toward technology, while SCHG embraces a broader range of sectors. This difference, though nuanced, could have a discernible impact on total returns, particularly if those specific stocks either soar or stumble.

Moreover, VOOG’s exclusive focus on growth stocks within the S&P 500 introduces a degree of inherent stability. S&P 500 companies, after all, represent the largest and most established entities in the American economy, offering a degree of resilience that may not be present in smaller, more volatile stocks.

The two funds also diverge in their fee structures and dividend yields. VOOG’s expense ratio, while slightly higher (0.07% versus 0.04% for SCHG), is hardly prohibitive. For every $10,000 invested, the difference amounts to a mere $3 per year. VOOG’s marginally higher dividend yield, however, can help offset this additional cost.

An exchange-traded fund, a basket of securities traded on stock exchanges like a stock.

Expense ratio:

Annual fund operating costs, expressed as a percentage of the fund’s average assets.

Dividend yield:

Annual dividends paid by a fund or stock divided by its current share price.

Total return:

Investment performance including price changes plus all dividends and distributions, assuming they are reinvested.

Beta:

Measure of an investment’s volatility compared with the overall market, typically the S&P 500 index.

AUM:

Assets under management; the total market value of all assets in a fund.

Max drawdown:

The largest peak-to-trough decline in an investment’s value over a specific period.

Growth stocks:

Companies expected to grow earnings or revenue faster than the overall market, often reinvesting profits instead of paying dividends.

Large-cap:

Companies with relatively large market capitalizations, typically tens or hundreds of billions of dollars.

Index:

A rules-based basket of securities used to track or benchmark a specific segment of the market.

Diversification:

Spreading investments across many securities or sectors to reduce the impact of any single holding.

Sector:

A group of companies operating in the same broad industry category, such as technology or healthcare.

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2026-01-18 13:04