SCHG vs. VOOG: Which Popular Large-Cap Growth ETF Is the Better Buy Right Now?

The Vanguard S&P 500 Growth ETF (NYSEMKT:VOOG) and the Schwab U.S. Large-Cap Growth ETF (NYSEMKT:SCHG) both offer efficient access to large-cap U.S. growth companies, but they track different indexes and show subtle differences in cost, diversification, and recent performance.

This comparison looks at their key similarities and distinctions to help clarify which ETF may appeal more to various investor preferences.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.

SCHG is marginally more affordable on fees with a lower expense ratio, but VOOG delivers a slightly higher dividend yield. Both cost and payout differences are minimal, so investors likely won't notice a significant difference in either of these areas.

Performance & risk comparison

What's inside

SCHG tracks a broad index of large-cap U.S. growth stocks, with technology making up 45% of the portfolio, followed by communication services at 16% and consumer cyclicals at 13%.

The fund holds 198 stocks, with its top three positions -- Nvidia, Apple, and Microsoft -- accounting for a significant share. SCHG has a long track record, with over 16 years of operation, with none of the quirks that sometimes complicate ETF investing.

VOOG holds 140 stocks, offering somewhat less diversification. Its top holdings match SCHG's, but combined, they make up a slightly larger portion of the portfolio.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

VOOG and SCHG both focus on large-cap growth stocks, but with slightly different levels of diversification.

VOOG has marginally fewer holdings than SCHG, but it's also more concentrated in tech stocks. Tech makes up around 49% of the fund, compared to 45% for SCHG. Although the top three holdings are the same for both ETFs, those stocks make up around 32% of VOOG's portfolio and 29% of SCHG's. It's a subtle difference, but it could have an impact on total returns if those specific stocks over- or underperform.

Also, while SCHG is focused on a wide variety of large-cap stocks, VOOG solely contains growth stocks from within the S&P 500. S&P 500 companies are among the largest and strongest in the U.S., which could somewhat limit VOOG's risk.

The two funds also offer slightly different fee structures and dividend yields. VOOG's expense ratio is nearly double SCHG's, at 0.07% compared to 0.04% -- meaning investors will pay either $4 or $7 per year, respectively, for every $10,000 invested. However, VOOG offers a marginally higher dividend yield, which can help claw back some savings from the higher fee.

In summary, VOOG holds slightly fewer stocks and is focused on S&P 500 growth companies, offering a higher yield despite also charging a higher expense ratio. SCHG is somewhat broader, with less of an emphasis on tech, with an advantage on fees.

Glossary

ETF: Exchange-traded fund that holds a basket of securities and trades 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.

Katie Brockman has positions in Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.