SCHG vs. VOOG: A Deep Dive Into Two of the Best Large Cap Growth Funds for Today's Investors

Performance First: The Numbers That Matter

When evaluating the best large cap growth funds, recent returns tell an important story. The Vanguard S&P 500 Growth ETF (VOOG) and Schwab U.S. Large-Cap Growth ETF (SCHG) both delivered solid one-year performance, but with notable differences. As of mid-January 2026, VOOG surged 20.88% over the trailing 12 months, while SCHG posted 15.90%. However, over a longer five-year horizon, SCHG edges ahead slightly—a $1,000 investment in SCHG would have grown to $2,046, compared to $1,965 for VOOG.

Neither fund is immune to downturns. SCHG experienced a steeper maximum drawdown of -34.59% over five years, while VOOG saw -32.74%, suggesting somewhat different risk profiles despite their similar mandates.

Under the Hood: What These Best Large Cap Growth Funds Actually Hold

VOOG’s concentrated approach: The Vanguard fund holds just 140 stocks, with a pronounced focus on mega-cap tech names. Technology accounts for roughly 49% of the portfolio, with communication services and consumer cyclicals rounding out the major sectors. The big three—Nvidia, Apple, and Microsoft—comprise about 32% of the fund’s total value, making it a fairly concentrated bet on these tech giants.

SCHG’s broader diversification: By contrast, Schwab’s offering holds 198 stocks and demonstrates a somewhat wider net. Tech still dominates at 45%, but the portfolio is spread more evenly. Those same top three holdings represent only 29% of SCHG’s assets, offering investors slightly better diversification cushion. With over 16 years of operational history, SCHG has proven to be a steady large-cap growth vehicle.

The distinction matters: if Nvidia, Apple, and Microsoft hit headwinds, VOOG’s concentrated position could amplify downside risk. SCHG’s broader holdings provide more breathing room.

The Cost & Yield Equation

Fee structures differ in subtle but meaningful ways. SCHG charges an expense ratio of just 0.04%, making it the more economical choice—on a $10,000 investment, you’d pay $4 annually. VOOG costs nearly double at 0.07%, or $7 per $10,000 invested.

Dividend yields partially offset these differences. VOOG delivers 0.49% in annual yield, while SCHG offers 0.36%. While the yield gap isn’t enormous, VOOG’s higher payout can recoup some of the extra fee expense over time.

Investment Implications: Which Best Large Cap Growth Fund Fits Your Goals?

Choose VOOG if: You’re comfortable with concentrated exposure to mega-cap tech and want to capitalize on recent strength in that segment. The higher dividend yield may appeal to income-focused investors willing to pay slightly higher fees. VOOG’s S&P 500 growth-only methodology ensures you’re getting established, well-capitalized companies—a risk-mitigation factor in itself.

Choose SCHG if: You prefer broader diversification, lower fees, and a long-term track record. The slightly stronger five-year performance and wider stock selection make SCHG the choice for investors seeking balance between growth exposure and downside protection. The cost advantage compounds significantly over decades of investing.

Both funds represent efficient, low-cost access to large-cap U.S. growth companies—a foundation for many portfolios. The choice ultimately depends on whether you prioritize fee minimization and diversification (SCHG) or don’t mind concentration in exchange for recent outperformance and higher yields (VOOG).

Key Terms Explained

• Expense Ratio: Annual operating costs expressed as a percentage of assets
• Dividend Yield: Annual distributions relative to current share price
• Beta: Volatility measure compared to the S&P 500 benchmark
• Large-Cap Growth: Established companies with market caps in the tens or hundreds of billions, trading at valuations reflecting growth expectations
• Drawdown: Maximum peak-to-trough decline during a specific period
• Diversification: Spreading capital across many holdings to reduce single-stock risk