Title: Schwab U.S. Large-Cap Growth ETF: The Best of Both Worlds in Growth Stocks
Growth stocks have been the darlings of the market for quite some time now, with investors drawn to companies expected to outperform the U.S. stock market due to their potential for high earnings growth. While many associate growth stocks with smaller companies on the brink of a breakthrough, the reality is that growth potential is not tied to size. Large-cap companies, with market caps over $10 billion, can also exhibit rapid growth.
For investors seeking a combination of growth potential and stability, the Schwab U.S. Large-Cap Growth ETF (NYSEMKT: SCHG) is an excellent option. This ETF is led by some of the world’s top companies, with its top 10 holdings accounting for over 56% of the fund. These companies, including tech giants like Alphabet, have shown impressive performance over the past decade.
Since its inception in December 2009, the Schwab U.S. Large-Cap Growth ETF has consistently outperformed the S&P 500, averaging around 14.8% annual returns compared to the latter’s 11.3%. This ETF has the potential to be a lucrative addition to investors’ portfolios, with $6,000 annual investments averaging 12% returns potentially resulting in over $430,000 in 20 years.
One of the key advantages of the Schwab U.S. Large-Cap Growth ETF is its low expense ratio of just 0.04%, making it one of the most cost-effective ETFs in the market. This means investors can keep more of their returns, as illustrated by the significant difference in fees paid over 20 years compared to ETFs with higher expense ratios.
While the Motley Fool Stock Advisor team may not have included Schwab Strategic Trust – Schwab U.S. Large-Cap Growth ETF in their list of top stocks, the ETF’s track record of market-beating returns and low fees make it a compelling choice for investors looking for the best of both worlds in growth stocks.
