What SCHG actually is

SCHG follows an index of large US growth companies from the Dow Jones U.S. Total Stock Market family.

What is inside

Mega-cap technology and consumer companies lead the fund, along with health care and communication businesses. A handful of names make up a big share.

Distributions

SCHG pays a small quarterly dividend. Growth companies tend to reinvest, so the fund suits investors who want growth rather than income.

What to keep in mind

  • Concentration. A few giants drive returns.
  • Valuation risk. Growth stocks can fall sharply.
  • Low income. Not for those who need dividends.

Quick take

SCHG is a low-cost growth fund with modest income. Compare it with VUG and QQQ.