Schwab U.S. Large-Cap Growth ETF (ARCA: SCHG)

Schwab U.S. Large-Cap Growth ETF (ARCA:SCHG), Quote.Headers.trade-ideas

Schwab U.S. Large-Cap Growth ETF

Technology

Healthcare

Consumer Cyclical

Communication Services

Financial Services

Industrials

Consumer Defensive

Basic Materials

Energy

Real Estate

Other

Utilities

To pursue its goal, the fund generally invests in stocks that are included in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. The index includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index includes the components ranked 1-750 by full market capitalization and that are classified as growth based on a number of factors. The index is a float-adjusted market capitalization weighted index. As of August 31, 2023, the index was composed of 241 stocks.

Apple Inc

Microsoft Corp

Nvidia Corp.

Amazon.Com Inc

Meta Platforms, Inc.

Alphabet Inc Cl A

Alphabet Holding Company Inc.

Broadcom, Inc., 8.00%

Tesla Inc Common Stock Usd 0.001

Eli Lilly and Company

Schwab US Large-Cap Growth ETF

Practicing Authentic Leadership

News

Tech

Media

NVDA

SCHG

Nvidia (NVDA) stock rises as analyst notes 152% growth in last year despite recent decline, making it more attractive to long-term investors.

What&#39;s Going On With Nvidia Stock On Monday?

investor charts ai2

Equities

Large Cap

Sector ETFs

Broad U.S. Equity ETFs

New ETFs

Markets

ETFs

AAPL

IUSG

SPYG

VONG

ETFs focused on growth equity saw double-digit inflows in June 2024, coinciding with tech sector outperformance and record highs for Vanguard Growth ETF.

Tech, AI Drive $12.2B Inflows Into Growth ETFs, Marking Record Outperformance Over Value

King,County,,Washington,,United,States,-,30,January,2022:,Nvidia

Global

FELG

INTC

VOOG

The recent surge in Nvidia&#39;s stock price has led some analysts to caution investors about the company&#39;s future growth prospects. This has prompted them to suggest alternative investments for a more balanced portfolio.

Nvidia&#39;s Soaring Stock Price Prompts Analysts To Suggest A Diversified Portfolio Approach: Tech Giant&#39;s &#39;Dominant Market Share Position Will Be Tested&#39;

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock is trading higher on Monday.
Ken Mahoney, president and CEO of Mahoney Asset Management, told Bloomberg that <a target="_blank" href="https://www.benzinga.com/news/24/08/40282876/whats-going-on-with-nvidia-stock-on-friday" rel="noreferrer noopener">Nvidia&#8217;s valuation has</a> dropped to around 30 times forward earnings after the recent selloff, which could make the stock more appealing to long-term investors.
The analyst said that the key artificial intelligence beneficiary stock has been up 152% in the last 12 months despite losing ~15% in the previous 30 days.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12105211/newplot-9.png" alt="" class="wp-image-490061" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12105211/newplot-9.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12105211/newplot-9-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia&#8217;s success reflects its success in building a &#8220;walled garden&#8221; of developers who build AI systems and other software with its chips, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/tech/ai/ai-nvidia-apple-amd-jensen-huang-software-bb581f5a" rel="noreferrer noopener">reports</a>.&nbsp;
This ecosystem, centered around Nvidia&#8217;s software platform CUDA, has made it nearly impossible for competitors to gain significant ground in the AI market.
Nvidia will likely have more leverage than its rivals as it continues to concentrate on its coding adeptness.
CUDA, launched in 2007, allows Nvidia&#8217;s specialized chips, GPUs, to run non-graphics software, including AI applications.
Jensen Huang, Nvidia&#8217;s CEO, describes this approach as &#8220;full-stack computing,&#8221; where the company provides the chips and the software necessary to build AI systems.
This strategy has solidified Nvidia&#8217;s position as the dominant player in the AI chip market, with an estimated 90% market share expected to continue for the next few years.
The AI chip market is projected to reach $400 billion annually by 2027.
Investors can gain exposure to Nvidia through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>).
Price Action: NVDA shares traded higher by 5.30% at $110.24 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Nvidia Blog

What's Going On With Nvidia Stock On Monday?

Exchange-traded funds (ETFs) focused on growth equities &#8211; characterized by robust revenue growth, high valuations, and strong potential for innovation – experienced elevated <a href="https://www.benzinga.com/etfs">inflows in June.</a>
This surge in interest towards growth-linked funds coincided with a significant outperformance of growth over value stocks, reflecting increased investor confidence in the tech sector and disruptive innovations like artificial intelligence.
The eight largest growth-linked ETFs by assets under management (AUM) collectively experienced a substantial $12.2 billion in inflows from the beginning of the month through June 24.
Leading the pack, the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) saw the highest monthly inflows among its peers, attracting an impressive $5.68 billion. This remarkable figure is set to mark the Vanguard Growth ETF&#8217;s record monthly inflows, ranking second in June only to the nearly $10 billion attracted by the broader iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Growth ETF</th>
<th>AUM</th>
<th>June Flows (as of June 24)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard Growth ETF </td>
<td>$139.84B</td>
<td>$5.68B</td>
</tr>
<tr>
<td>IShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>)</td>
<td>$97.00B</td>
<td>$0.03B</td>
</tr>
<tr>
<td>IShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</td>
<td>$52.96B</td>
<td>$4.01B</td>
</tr>
<tr>
<td>Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>)</td>
<td>$30.62B</td>
<td>$0.44B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPYG#NYSE">SPYG</a>)</td>
<td>$29.40B</td>
<td>$0.47B</td>
</tr>
<tr>
<td>Vanguard Mega Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGK#NYSE">MGK</a>)</td>
<td>$22.39B</td>
<td>$1.08B</td>
</tr>
<tr>
<td>Vanguard Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VONG#NYSE">VONG</a>)</td>
<td>$20.81B</td>
<td>$0.08B</td>
</tr>
<tr>
<td>IShares Core S&amp;P U.S. Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IUSG#NYSE">IUSG</a>)</td>
<td>$18.94B</td>
<td>$0.15B</td>
</tr>
<tr>
<td>Vanguard Small-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBK#NYSE">VBK</a>)</td>
<td>$17.25B</td>
<td>$0.26B</td>
</tr>
</tbody>
<tfoot>
<tr>
<td>Total</td>
<td></td>
<td>$12.2B</td>
</tr>
</tfoot>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
<h3 class="wp-block-heading">Growth Stocks Surge To Record Highs Against Value</h3>
The Vanguard Growth ETF&#8217;s relative performance against its counterpart, the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), set new record highs in June, surpassing the previous peaks achieved in November 2021, as illustrated in the chart below, <a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1">sourced from Benzinga Pro.</a>
The primary drivers of the growth style&#8217;s outperformance in June were tech giants Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which saw robust rallies of 15% and 8.8%, respectively. 
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="460" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png" alt="" class="wp-image-405212" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-300x135.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-768x345.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1536x690.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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Image generated using artificial intelligence via Midjourney.

The recent surge in NVIDIA Corp&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock price has led some analysts to caution investors about the company&#8217;s future growth prospects. This has prompted them to suggest alternative investments for a more balanced portfolio.
What Happened: The AI-driven boom of Nvidia has been reflected in its recent earnings, which surpassed expectations. This led to the company&#8217;s shares crossing the $1,000 mark for the first time, <a href="https://www.cnbc.com/2024/05/27/overinvested-in-nvidia-here-are-some-alternative-growth-stocks.html">reported</a> CNBC on Sunday.
Despite this, some analysts are concerned about a potential slowdown in growth, particularly in the latter part of the year. Lucas Keh, an analyst at Third Bridge, highlighted the impending shift of AI workloads in the cloud from training to inference, which could challenge Nvidia&#8217;s dominant market position.
"When the majority of AI workloads in the cloud move over from training to inference, Nvidia's dominant market share position will be tested. Most use cases in inference do not require the depth/amount of computing provided by Nvidia's top GPUs," he said.
Nancy Tengler, Chief Investment Officer at Laffer Tengler Investments, also expressed her surprise at the stock&#8217;s performance following the earnings report, suggesting that the market may have already priced in the positive results.
See Also: <a href="https://www.benzinga.com/markets/equities/24/05/39021107/donald-trump-floats-idea-of-bringing-back-adviser-peter-navarro-for-potential-second-term-despit?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Donald Trump Floats Idea Of Bringing Back Adviser Peter Navarro For Potential Second Term Despite Prison Sentence: &#8216;I Would Absolutely Have Peter Back&#8217;</a>
These concerns have led some analysts to suggest diversifying portfolios by considering alternative investments with low correlation to Nvidia. Four exchange-traded funds were identified using FactSet, which have shown a negative or low correlation to Nvidia in the past month. 
These ETFs are Vanguard S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOOG#NYSE">VOOG</a>), Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>), Vanguard Russell 1000 Growth ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VONG#NASDAQ">VONG</a>), and Fidelity Covington Trust Fidelity Enhanced Large Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FELG#NYSE">FELG</a>).
Why It Matters: Nvidia&#8217;s recent performance has been nothing short of remarkable. The company&#8217;s <a href="https://www.benzinga.com/news/earnings/24/05/38982843/nvidia-at-the-center-of-global-sovereign-ai-wave-heres-what-it-means">first-quarter earnings report</a> indicated its pivotal role in the global AI industry, with its technology being at the forefront of the &#8220;Sovereign AI&#8221; wave.
Moreover, the company&#8217;s <a href="https://www.benzinga.com/top-stories/24/05/39011237/exclusive-nvidia-dow-jones-inclusion-a-matter-of-when-will-it-replace-intel">potential inclusion in the Dow Jones Index</a> has been a hot topic, with experts suggesting that it&#8217;s only a matter of time before Nvidia replaces Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>).
Despite these positive indicators, the concerns raised by analysts highlight the need for a diversified investment approach. This is particularly important given the <a href="https://www.benzinga.com/markets/equities/24/05/39002763/wow-elon-musk-reacts-as-nvidias-eye-popping-market-cap-leaves-entire-german-stock-market-gdps-of">staggering market cap of Nvidia</a>, which has even caught the attention of tech mogul Elon Musk. In light of this, the suggestion of alternative growth stocks could provide investors with a more balanced and secure investment strategy.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39014019/nvidia-tech-stocks-propel-nasdaq-100-to-record-high-solar-sector-shines-meme-stock-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nvidia, Tech Stocks Propel Nasdaq 100 To Record High; Solar Sector Shines, Meme Stock Bubble Bursts</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Nvidia's Soaring Stock Price Prompts Analysts To Suggest A Diversified Portfolio Approach: Tech Giant's 'Dominant Market Share Position Will Be Tested'

In late September, the communication services sector <a href="http://www.benzinga.com/analyst-ratings/analyst-color/18/09/12339312/the-communication-services-sector-is-almost-here">officially became the 11th sector in the S&amp;P 500</a>. The move saw an increased weight in the S&amp;P 500 for the group previously known as telecom, as well as some departures from the consumer discretionary and technology sectors to communication services.
Those moves affect more than just sector exchange traded funds. Some growth and value ETFs are affected by moves used to create the communication services sector.
<h3>What Happened</h3>
Alphabet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), Facebook Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>) and Netflix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>) are among the stocks that left technology and consumer discretionary for communication services, explaining much of the new found communication services heft <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12436587/a-schwab-growth-etf-for-october">in some growth ETFs</a>, including the Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>).
SCHG &ldquo;has 24% of assets in Information Technology, 16% in Consumer Discretionary and 12% in Communications Services; an additional 16% in health care is not impacted by the GICS realignment,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a recent note.
SCHG holds 417 stocks and features Alphabet and Google among its top 10 holdings. The rival SPDR Portfolio S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spyg#NYSE">SPYG</a>) allocates 12.16 percent of its weight to communication services, that ETF&#39;s fourth-largest sector weight.
<h3>Why It&#39;s Important</h3>
Some value ETFs also have new weights to communication services, but to different names from that sector than the likes of Alphabet and Netflix. The iShares S&amp;P 500 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ive#NYSE">IVE</a>) has a new communication services weight.
IVE &ldquo;held more in Communications Services (7%) of assets than in Consumer Discretionary (6%),&rdquo; said Rosenbluth. He notes IVE&#39;s communication services exposure is primarily comprised of AT&amp;T Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>), Verizon Communications Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>), Walt Disney Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) and Comcast Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cmcsa#NASDAQ">CMCSA</a>).
<h3>What&#39;s Next</h3>
The Vanguard Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vtv#NYSE">VTV</a>), a direct competitor to IVE, has a lower communication services weight than its iShares rival but a larger technology allocation.
&ldquo;While the sector weightings of these style-oriented ETFs will shift as the growth/momentum or value criteria is revisited per index rules, there are no sector constraints in building these portfolios. As such, we think investors need to look inside and understand how much exposure they have to the three impacted sectors,&rdquo; said Rosenbluth.
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How Growth And Value ETFs Look After The Debut Of Communication Services

The arrival of October typically&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12430080/best-sector-etfs-for-october-3-stocks-really-matter">brings good tidings</a> for domestic equities, meaning that kicking off the fourth quarter by considering some of the exchange traded funds that are already performing well this year may be a sound strategy.
With growth stocks soaring again in 2018, the Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>) is one broad market domestic equity fund to consider this month. SCHG is <a href="https://newpublic.cfraresearch.com/">CFRA Research&#39;s</a> focus ETF for the month of October.
<h3>What Happened</h3>
The $6.9-billion SCHG, which targets the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, entered October with a year-to-date gain of about 16 percent while flirting with record highs. SCHG hit a 52-week high on Monday. While Q4 is historically kind to stocks, some sectors are better bets than others.
&ldquo;In the last quarter of the year, The S&amp;P 500 averages a 5-percent price return,&rdquo; Todd Rosenbluth, CFRA&#39;s director of ETF and mutual fund research, said in a Monday note.
&ldquo;However, according to CFRA Chief Investment Strategist Sam Stovall, there has been performance disparity within the sectors of the broader market in the fourth quarter. Information technology (up 6.5 percent), consumer discretionary (6.2 percent) and industrials (5.9 percent) were the best performing of the seven sectors to top 5 percent&nbsp;on average.&rdquo;
<h3>Why It&#39;s Important</h3>
SCHG, which holds over 400 stocks, is typical of many growth strategies with its large weights to technology and consumer discretionary stocks. Those sectors combine for over half the ETF&#39;s weight. Familiar growth stocks&nbsp;like&nbsp;Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and Amazon.com Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>)&nbsp;are among SCHG&#39;s top holdings.
&ldquo;In mid-September, CFRA Equity Analyst Angelo Zino reiterated a Buy recommendation on AAPL following the company&rsquo;s product release announcement, including new iPhones and Apple Watch,&rdquo; said Rosenbluth. &ldquo;Zino explained price points for all devices are higher than CFRA expected and could provide upside to revenues and earnings per share. The stock remains undervalued based on Zino&rsquo;s P/E analysis.&rdquo;
CFRA equity analyst Tuna Amobi has a Buy rating on Amazon.
&ldquo;Amobi expects AMZN to exceed the midpoint of management&#39;s guidance for third quarter 2018 net sales of 23-31 percent and operating income of $1.4 billion to $2.4 billion, amid continued international investments,&rdquo; Rosenbluth said.&nbsp;
<h3>What&#39;s Next</h3>
SCHG has other favorable characteristics.
&ldquo;The ETF has been trading with bullish technical trends, above its 200-day moving average. Meanwhile, more than 300,000 shares change hands on daily basis with a tight penny bid/ask spread. The net expense ratio of 0.04 percent&nbsp;is among the cheapest funds regardless of investment style,&rdquo; according to CFRA.&nbsp;
CFRA has an Overweight rating on SCHG, the highest rating the research firm gives to ETFs.
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AMZN

A Schwab Growth ETF For October

A common criticism of sell-side equity analysts is that some on Wall Street wax bullish when stocks in their coverage universe are trading near new highs and turn bearish when those stocks make new lows. Said another way, some analysts&#39; forecasts are not always predictive or profitable for investors.
Of course, there are exceptions as some analysts really do &ldquo;get it.&rdquo; That sentiment extends to ratings of mutual funds and exchange traded funds. Sure, there are some highly rated funds that are not deserving of those ranking and there are other funds with lofty ratings that deliver for investors.
<h3>Paying Attention Pays Off</h3>
Investors that paid close attention to <a href="https://www.cfraresearch.com/">CFRA Research&#39;s ETF ratings</a> last year could have done well by focusing on the firm&#39;s Overweight ETFs while missing some potential disappointments by ignoring the lowest rated ETF&#39;s in CFRA&#39;s coverage universe.
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/01/8920554/these-growth-etfs-are-popular-with-investors">These Growth ETFs Are Popular With Investors</a>
&ldquo;Whether it was the addition of $284 billion of new money for ETFs; various surveys of self-directed investors, advisors and institutional investors indicating they have increasingly used and plan to consider ETFs; and the ongoing expansion of new products from established and new entrants, it is easy to conclude last year was an excellent year for the ETF industry. Add to that list, CFRA&rsquo;s top ranked equity ETFs outperformed the S&amp;P 500 benchmark in 2016 by 399 basis points, while bottom ranked ETFs lagged by 559 basis points,&rdquo; said CFRA in a note out Monday.
<h3>SCHG In Focus</h3>
The Schwab U S Large Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>) is an example of one of CFRA&#39;s Overweight ETF&#39;s that is soaring. SCHG,<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/01/8920554/these-growth-etfs-are-popular-with-investors"> which saw 2016 inflows of $484 million</a>, is higher by nearly 6 percent year-to-date and hit a new high Monday.
SCHG is one of the cheapest growth ETFs on the market with an annual fee of just 0.04 percent, or $4 on a $10,000 investment. The Schwab growth ETF returned 6.8 percent last year.
The iShares Core S&amp;P Total U.S. Stock Market ETF (NYSE: <a class="ticker" href="/stock/itot#NYSE">ITOT</a>) is another example of a low fee ETF that garners an Overweight rating from CFRA. That ETF is higher by almost four percent to start 2017. ITOT rose 12.6 percent last year, nudging the 12 percent returned by the S&amp;P 500.
ITOT is one of the least expensive equity ETFs on the market today with an annual fee of just 0.03 percent. The ETF holds nearly 3,700 stocks.
&ldquo;In 2016, the <a href="https://www.benzinga.com/topic/etf">Overweight ranked ETFs</a> had 15.95 percent total return, exceeding the 11.96 percent for the S&amp;P 500 index. Meanwhile, the Underweight ranked ETFs gained only 6.37 percent. On a three-year and five-year total return basis, Overweight ranked ETFs outperformed the benchmark by 217 and 289 basis points, respectively, while Underweight ranked ETFs lagged by 1,109 and 996 basis points,&rdquo; added CFRA.

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ITOT

Ratings Matter For Some ETFs

Last year, the value factor snapped its skid against its growth counterpart in significant fashion, but some growth exchange-traded funds were still able to accumulate new assets.
&ldquo;Large-cap growth mutual funds had $56 billion of net outflows in 2016 with four portfolios shedding $3 billion more in assets according to Thomson Reuters Lipper. Meanwhile, even as adoption of lower-cost ETFs has increased, large-cap growth ETFs gathered just $1.3 billion in new money, according to Factset,&rdquo; said <a href="https://www.cfraresearch.com/">CFRA Research</a> in a note out Wednesday.
While many growth ETFs languished in their asset-gathering efforts investors sent billions of new dollars into value funds, some growth ETFs remain popular with investors. That includes a pair of low-cost options.
<h3>Popularity, At Not A Huge Cost</h3>
The Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>), which tracks the CRSP US Large Cap Growth Index, saw 2016 inflows of $1.4 billion, according to CFRA. VUG gained just 6.3 percent last year, barely more than half the returns offered by the S&amp;P 500. VUG also significantly trailed its value counterpart, the Vanguard Value ETF (NYSE: <a class="ticker" href="/stock/vtv#NYSE">VTV</a>), which surged more <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/01/8861480/a-value-etf-looks-for-big-things-in-2017">than 17 percent last year</a>.
VUG is typical of many growth ETFs, as it sports substantial weights to the technology and consumer discretionary sectors. Those sectors combine for over 45 percent of VUG&#39;s weight. Top 10 holdings in the Vanguard ETF include venerable growth names such as Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and Google parent Alphabet Inc. (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="/stock/googl#NASDAQ">GOOGL</a>).
VUG holds 323 stocks, and its 0.08 percent annual fee makes it less expensive than 93 percent of competing funds.
<h3>Another Option</h3>
Investors allocated $484 million to the Schwab U S Large Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>) last year. With 429 holdings, SCHG has deeper bench than its Vanguard rival. SCHG tracks the Dow Jones U.S. Large Cap Growth Total Stock Market Index.
SCHG allocates over 47 percent of its combined weight to technology and consumer discretionary stocks. Amazon and Alphabet are also found among this ETF&#39;s top 10 holdings, and SCHG features an almost 17 percent weight to healthcare stocks.
SCHG is one of the cheapest growth ETFs on the market with an annual fee of just 0.04 percent, or $4 on a $10,000 investment. The Schwab growth ETF returned 6.8 percent last year.
CFRA has Overweight ratings on both SCHG and VUG. That is the firm&#39;s highest fund rating.

GOOGL

These Growth ETFs Are Popular With Investors

Investors searching for core growth exchange-traded funds have a plethora of choices at their disposal with small variations in fees, index construction and liquidity.

	Often times a large menu of options can lead to indecision when selecting a stalwart mix of stocks to participate in the market. Nevertheless, several ETFs quickly stand out from the group for their low cost, diversification and flexibility.

	The Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>) is the cheapest overall option with an expense ratio of 0.07 percent. This means that SCHG will only charge $7 for every $10,000 invested each year.

	This ETF contains nearly 400 large-cap stocks that have been identified as exhibiting high growth potential. Top holdings include well-known names such as Apple Inc. and Amazon.com Inc. In addition, SCHG has over $2.1 billion in total assets.
Related Link: <a href="http://www.benzinga.com/news/15/06/5619637/greeces-final-proposal-draws-criticism-from-syriza">Greece's Final Proposal Draws Criticism From Syriza</a>
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	Over the last year, SCHG has gained 14 percent compared to 9.81 percent in the broad benchmark SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>). The outsized exposure to technology, consumer discretionary, and health care names has been a tailwind for performance over this time frame.

	Another alternative for growth investors is the iShares Core U.S. Growth ETF (NYSE: IUSG). This ETF takes more of a total market approach by incorporating large-, mid- and small-cap holdings in its highly diversified portfolio.

	IUSG has nearly $700 million in assets dedicated to 1,870 stocks in a market cap weighted structure. In addition, this fund has a minuscule expense ratio of just 0.09 percent, which makes it suitable for even the most cost conscious investor.

	Lastly, the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>) provides exposure to a deep pool of 360 large company stocks that is based on the CRSP US Large Cap Growth Index. Vanguard has always been known for its cost effective funds and VUG doesn&rsquo;t disappoint with a similar expense ratio of 0.09 percent.

	This ETF has accumulated over $19.1 billion in total assets and has a slightly different index construction methodology than typical Dow Jones or Russell Investment brands. The top 10 holdings of this market cap weighted ETF represent 25 percent of the total asset allocation and include outsized positions in Apple and Google Inc.

	Disclosure: At the time this article was published, clients of FMD Capital Management owned shares of VUG.

3 Core ETFs For Growth Investors

Discount broker Charles Schwab (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>), sponsor to some of the least expensive ETFs on the market, is making some of those funds even cheaper. In a filing with the <a href="http://www.sec.gov/Archives/edgar/data/1454889/000119312512398527/d403516d497.htm">Securities and Exchange Commission</a>, Schwab outlined fee cuts a wide array of its ETFs.

Among the Schwab funds with lower expense ratios will be two of the firm's most popular products. The Schwab U.S. Broad Market ETF (NYSE: <a class="ticker" href="/stock/schb#NYSE">SCHB</a>) will see its fee reduced to 0.04 percent per year from 0.06 percent. The annual expense ratio on the Schwab U.S. Large-Cap ETF (NYSE: <a class="ticker" href="/stock/schx#NYSE">SCHX</a>) goes to 0.04 percent from 0.08 percent. SCHB has $1.1 billion in assets under management while <a href="https://www.schwabetfs.com/summary.asp?symbol=SCHX">SCHX had $887.5 million in AUM at the end of August</a>.

The Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>), Schwab U.S. Large-Cap Value ETF (NYSE: <a class="ticker" href="/stock/schv#NYSE">SCHV</a>). Schwab U.S. REIT ETF (NYSE: <a class="ticker" href="/stock/schh#NYSE">SCHH</a>) and the Schwab U.S. Mid-Cap ETF (NYSE: <a class="ticker" href="/stock/schm#NYSE">SCHM</a>) will see annual fees reduced to 0.07 percent from 0.13 percent.

The Schwab U.S. Small-Cap ETF (NYSE: <a class="ticker" href="/stock/scha#NYSE">SCHA</a>) goes down three basis points to 0.1 percent from 0.13 percent. In the dividend space, Schwab slashed the expense ratio on the Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>) to 0.07 percent from 0.17 percent.

Schwab also reduced expenses on several of its international funds, including the Schwab International Equity ETF (NYSE: <a class="ticker" href="/stock/schf#NYSE">SCHF</a>), which is going to 0.09 percent from 0.13 percent. The Schwab International Small-Cap Equity ETF (NYSE: <a class="ticker" href="/stock/schc#NYSE">SCHC</a>) will now have an expense ratio of 0.2 percent down from 0.35 percent.

Interestingly, the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) has lost the title of cheapest emerging markets ETF. That honor now goes to the Schwab Emerging Markets Equity ETF (NYSE: <a class="ticker" href="/stock/sche#NYSE">SCHE</a>), which will now charge 0.15 percent compared with 0.25 percent in the past.

Fees on the Schwab U.S. TIPS ETF (NYSE: <a class="ticker" href="/stock/schp#NYSE">SCHP</a>) were cut in half to 0.07 percent from 0.14 percent. The Schwab Short-Term U.S. Treasury ETF (NYSE: <a class="ticker" href="/stock/scho#NYSE">SCHO</a>) goes to 0.08 percent from 0.12 percent while the Schwab Intermediate-Term U.S. Treasury ETF (NYSE: <a class="ticker" href="/stock/schr#NYSE">SCHR</a>) will now charge 0.1 percent compared with 0.12 percent in the past.

The Schwab U.S. Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/schz#NYSE">SCHZ</a>) also cut its fees in half to 0.05 percent from 0.1 percent while the Schwab U.S. REIT ETF (NYSE: <a class="ticker" href="/stock/schh#NYSE">SCHH</a>) will now charge 0.07 percent, down from 0.13 percent. 

All that on top of the fact that Schwab offers all of its ETFs on a commission-free basis to its clients.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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SCHA

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SCHZ

Schwab ETF Fees Hit Rock Bottom

With Europe still in flux to put things mildly and rampant speculation that emerging markets growth will slow more than most investors would like to see, perhaps the U.S. equity market is starting to look good by comparison. If that's the case, S&amp;P Capital IQ has an ETF recommendation worth noting.

The research issued an “overweight” rating on the Schwab Large-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>), saying “We view SCHG as predominantly composed of large-cap U.S. stocks with strong growth characteristics, and we view its underlying holdings as relatively attractive.”

SCHG made its debut in December 2009 and now is home to 422 stocks and a paltry expense ratio of 0.13%. The ETF has $288.5 million in assets under management, according to Schwab's Web site. That expense ratio puts SCHG in the 95th percentile of the U.S. ETF universe, according to S&amp;P.

“With growing concerns over economic malaise in the Eurozone and questions over the extent to which economic growth may be decelerating in China, focusing on the U.S. market may be seen as somewhat of a relatively safer haven these days. In addition, questions over the solvency of financial institutions, especially in Europe, also suggest to us a preference for large-cap names over small-cap ones,” S&amp;P analyst Stewart Glickman said in the note.

Four sectors – technology, consumer discretionary, industrials and health care get double-digit weights in SCHG with enegy not far behind at 9.8%. That said, tech names dominate this fund's weight with an allocation of 30.1%. Apple (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>) Berkshire Hathaway (NYSE: BRK.B), Cisco (Nasdaq: <a class="ticker" href="/stock/csco#Nasdaq">CSCO</a>), Google (Nasdaq: <a class="ticker" href="/stock/goog#Nasdaq">GOOG</a>) and Microsoft (Nasdaq: <a class="ticker" href="/stock/msft#Nasdaq">MSFT</a>) are the ETF's top-five holdings.

While SCHG has jumped from $25.50 to almost $30 in just the past month, if the ETF can crack resistance at $30 a move to $33 could be in the offing.

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Schwab U.S. Large-Cap Growth ETF

Overview

Schwab U.S. Large-Cap Growth ETF (ARCA:SCHG), Quote.Headers.trade-ideas