VUGvs SCHG

Quick verdict

Vanguard Growth ETF (VUG) and Schwab U.S. Large-Cap Growth ETF (SCHG) are often compared by investors building a core portfolio. Their holdings overlap by roughly 24.3% (moderate overlap), sharing 7 of their top positions. neither clearly is cheaper at 0.04% vs 0.04%, VUG pays more income, and SCHG has the stronger recent track record. The two are evenly matched; with this much overlap, holding both adds cost without much extra diversification.

Holdings overlap

VUG and SCHG overlap by about 24.3% across their largest holdings, which is moderate. There is meaningful shared exposure but also genuine differences, so pairing them is defensible if you want a tilt.

2-year relative performance

At-a-glance comparison

Cost

neither clearly is the lower-cost fund. VUG charges an expense ratio of 0.04% versus 0.04% for SCHG. On a $10,000 position that is about $4 vs $4 per year — small, but it compounds over decades.

Income & yield

VUG yields 0.5% and SCHG yields 0.4%, so VUG is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Large-Cap Growth vs US Large-Cap Growth.

Performance

Over five years VUG has returned 14.3% annualised against 17.6% for SCHG; on a three-year basis it is 0.7% vs 15.6%. SCHG leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

VUG holds about 116 positions (US Large-Cap Growth, Vanguard); SCHG holds about 497 (US Large-Cap Growth, Schwab). SCHG is the more diversified by raw holding count, and AUM is 419.9B vs 206.5B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose VUG. For the most income, VUG. For growth exposure, SCHG. Given 24.3% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: VUG
• Most income: VUG
• Growth exposure: SCHG

Frequently asked questions

How much do VUG and SCHG overlap?

Their largest holdings overlap by approximately 24.3% (moderate), sharing 7 top positions. There is room for both to add diversification.

Which is cheaper, VUG or SCHG?

neither clearly is cheaper, with an expense ratio of 0.04% versus 0.04%.

Which has the higher dividend yield?

VUG yields 0.5% and SCHG yields 0.4%, so VUG pays more income.

Should I own both VUG and SCHG?

With 24.3% overlap, owning both can be reasonable if you want to combine their different exposures.