Wealthy PotSCHB vs SCHG: The Whole Market or Its Growth Slice, and SCHG Is Half of SCHB Already
SCHB is Schwab's whole-US-market ETF. SCHG is Schwab's large-cap growth ETF, and every stock it owns is already inside SCHB. In the two funds' 31 May 2026 SEC holdings filings, all 192 SCHG holdings were also SCHB holdings, and the overlap was 51.3%. The other 48.6% of SCHB was 2,209 companies SCHG did not hold: Berkshire Hathaway, JPMorgan, Exxon, Walmart, Johnson & Johnson, and every small company. SCHB charges 0.03%, SCHG 0.04%. The real difference is how concentrated each is: SCHB's ten largest holdings were 36% of the fund, SCHG's 60%. SCHG returned 18.66% a year over the ten years to 31 August 2026 against 14.81% for SCHB, but trailed by 2.8 points over the latest year.
Table of Contents
The Short Answer
- Overlap: 51.3%. 99.9% of SCHG's money sat in stocks SCHB also held. Only 51.3% of SCHB's money sat in SCHG stocks. Our calculation from both funds' Form N-PORT filings for 31 May 2026.
- Fees: 0.03% vs 0.04%. $3 against $4 a year on $10,000, or $39 against $51 over ten years in the prospectus examples.
- Holdings: 2,397 vs 189 on Schwab's fund pages as of 1 October 2026.
- Top ten: 36.1% vs 60.1% of the fund. NVIDIA alone was 7.0% of SCHB and 11.0% of SCHG.
- Ten-year return to 31 August 2026: SCHG 18.66% a year, SCHB 14.81% at NAV. Over the latest year SCHB was ahead, 20.14% against 17.33%.
- Yield: 1.02% vs 0.36% (30-day SEC yield, 1 October 2026).
- They are not alternatives in the usual sense. SCHB is a complete US core. SCHG is a deliberate bet on one style inside it. Holding both overweights the same mega-caps.
How Much of SCHB Is Already SCHG
Schwab's prospectuses explain why SCHG sits inside SCHB. SCHB's index "includes the largest 2,500 publicly traded U.S. companies." SCHG's index takes the companies "ranked 1-750 by full market capitalization and that are classified as 'growth' based on a number of factors." Every company SCHG can own is therefore one SCHB can own too, and the filings show it does.
| Portfolios at 31 May 2026 | SCHB | SCHG |
|---|---|---|
| Holdings in the filing | 2,401 | 192 |
| Held by both funds | 192 | 192 |
| Share of the fund in those shared holdings | 51.3% | 99.9% |
| Holdings the other fund did not own | 2,209 (48.6% of SCHB) | 0 |
| Overlap, sum of the smaller weight in each shared stock | 51.3% | |
What SCHB holds that SCHG does not. The largest SCHB positions missing from SCHG on 31 May 2026 were Micron Technology (1.49% of SCHB), Berkshire Hathaway (1.19%), JPMorgan Chase (1.10%), Exxon Mobil (0.83%), Johnson & Johnson (0.74%), Intel (0.74%), Walmart (0.69%), Cisco (0.65%), Caterpillar (0.56%) and Lam Research (0.54%). Behind them are banks, energy, consumer staples and industrials, plus every mid-size and small company in the market. The growth label is the index provider's, reviewed on its own schedule, and companies move in and out of it.
Run the pair yourself, or add your other funds, in the Portfolio Overlap Checker.
SCHB vs SCHG Side by Side
| SCHB | SCHG | |
|---|---|---|
| Full name | Schwab U.S. Broad Market ETF | Schwab U.S. Large-Cap Growth ETF |
| Index | Dow Jones U.S. Broad Stock Market Index | Dow Jones U.S. Large-Cap Growth Total Stock Market Index |
| Index weighting | Float-adjusted market cap | Capped market cap, quarterly capping |
| Expense ratio | 0.03% | 0.04% |
| Prospectus cost on $10,000 over 10 years | $39 | $51 |
| Holdings (1 Oct 2026) | 2,397 | 189 |
| Top-10 weight (31 May 2026) | 36.1% | 60.1% |
| Total net assets (2 Oct 2026) | $44.9 billion | $64.7 billion |
| 30-day SEC yield (1 Oct 2026) | 1.02% | 0.36% |
| Portfolio turnover, fiscal year to 31 Aug 2025 | 3% | 27% |
| 30-day median bid/ask spread | 0.03% | 0.03% |
| 10-year return, NAV, to 31 Aug 2026 | 14.81% | 18.66% |
| Inception | 3 Nov 2009 | 11 Dec 2009 |
| Share split, 10 Oct 2024 | 3-for-1 | 4-for-1 |
The fee gap is one basis point: $10 a year on $100,000. It will not decide this choice.
Turnover is the cost the fee line does not show. A growth index has to sell companies that stop qualifying as growth and buy the ones that start to, and every trade costs something. SCHB turned over 3% of its portfolio in its last fiscal year, SCHG 27%. Schwab's pages show both lower as of 31 August 2026, at 3.03% and 17.04%, but the gap remains large.
Concentration: 36% vs 60% in Ten Stocks
Taking 2,209 companies out of the portfolio pushes the same few giants much higher. Both columns come from the same 31 May 2026 filings, with a company's share classes combined.
| Weight in the fund | SCHB | SCHG |
|---|---|---|
| NVIDIA | 7.02% | 11.01% |
| Apple | 6.26% | 9.83% |
| Alphabet | 5.44% | 8.53% |
| Microsoft | 4.57% | 7.17% |
| Amazon | 3.62% | 5.67% |
| Tesla | 1.68% | 3.91% |
| Ten largest holdings | 36.06% | 60.12% |
| 25 largest | 47.19% | 75.76% |
| 50 largest | 57.14% | 85.83% |
SCHG's index is "capped" for this reason. Since September 2024, S&P Dow Jones Indices has applied a quarterly capping process so the growth index stays within the diversification rules a registered fund must follow. Even so, six of every ten dollars in SCHG were in ten companies.
The prospectuses show what that meant in a bad stretch. SCHG's worst calendar quarter in the period they cover was a 22.27% loss in the second quarter of 2022, when growth stocks sold off. SCHB's worst was a 20.91% loss in the first quarter of 2020. SCHG's best quarter, 27.73% in mid-2020, was also higher than SCHB's 22.04%. More concentration has meant wider swings both ways.
Returns: Growth Led, Then Did Not
| Annualized NAV return, to 31 Aug 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| SCHB | 20.14% | 20.65% | 11.75% | 14.81% |
| SCHG | 17.33% | 23.45% | 13.26% | 18.66% |
| SCHG minus SCHB | -2.81 | +2.80 | +1.51 | +3.85 |
The ten-year column is what makes SCHG popular: large growth stocks beat the whole market by almost four points a year. The one-year column is the counterweight. In the twelve months to 31 August 2026 SCHB was ahead by 2.81 points, which means the companies SCHG leaves out did better than the growth names over that year. Style leadership changes, sometimes for years, and no one has a reliable way to time it.
Taxes have favoured SCHG so far, despite its higher turnover. The prospectuses' after-tax figures for the ten years to 31 December 2024 show SCHG falling from 16.66% a year before taxes to 16.43% after taxes on distributions, a 0.23-point drag. SCHB fell from 12.51% to 12.02%, a 0.49-point drag. SCHG's lower dividend yield means less taxable income each year. This matters only in a taxable account.
| Hypothetical $10,000 held 10 years | Ending value |
|---|---|
| At SCHB's 10-year NAV return (14.81%) | $39,792 |
| At SCHG's 10-year NAV return (18.66%) | $55,341 |
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Which One Fits You
If you want one fund for all your US stocks, SCHB is that fund. It holds growth, value, large and small in proportion to market value, charges 0.03%, and needs no view on which style leads next. Compare it with Vanguard's version in SCHB vs VTI.
If you deliberately want more in the large growth companies and can accept 60% in ten stocks, SCHG does that for one extra basis point. Expect deeper falls in a growth sell-off like 2022. For other growth options see SCHG vs VUG and SCHG vs QQQ.
Holding both is a weighting decision, not diversification. SCHB already owns every SCHG stock. A 70/30 SCHB/SCHG mix simply raises your weight in NVIDIA, Apple, Alphabet and the rest. If you want that tilt, set the percentage on purpose and rebalance to it.
In a 401(k) or IRA the tax difference does not apply, so choose on the job you want the fund to do. In a taxable account SCHG's lower yield has meant a smaller yearly tax bill in the prospectus figures, though its higher turnover means more trading inside the fund.
Already own one in a taxable account? Selling to switch realizes any gain. Point new contributions at the fund you want more of instead, and check your 2026 tax bracket before selling anything.
Both are ordinary ETFs listed on NYSE Arca, so any brokerage can buy them; check your broker's commission schedule. If you want only the large caps without the growth tilt, see SCHB vs SCHX and SCHG vs SCHX.
Sources & Methodology
- SCHB summary prospectus, 27 February 2026 and SCHG summary prospectus, 27 February 2026: fee tables, cost examples, index descriptions, turnover, best and worst quarters, and after-tax returns to 31 December 2024.
- Schwab Strategic Trust Form N-CSR, year ended 31 August 2025: the October 2024 share splits.
- Prospectus supplement, 23 September 2024: the growth index's quarterly capping.
- SCHB Form N-PORT, 31 May 2026 and SCHG Form N-PORT, 31 May 2026: the holdings behind the overlap and concentration tables.
- Schwab SCHB fund page and Schwab SCHG fund page: net assets, holdings counts, SEC yield, spread, turnover and returns to 31 August 2026.
How the overlap was computed. For each stock held by both funds we took the smaller of its two weights and added them up, the same method the Portfolio Overlap Checker uses on the same N-PORT data. Both filings are dated 31 May 2026, so no date mismatch affects this pair.
What we did not verify. Schwab's annual report prints sector weights as images, so we have not compared sectors numerically; the holdings lists show the difference instead. We did not check why a particular company, such as Micron, sat outside the growth index on 31 May 2026; style classification is the index provider's. Schwab had not yet posted returns to 30 September 2026 when we checked.
This article is for general education and is not investment, tax or legal advice. Past performance does not guarantee future results, and all investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026; fund data changes daily, so confirm current figures with Schwab before acting.
FAQ: SCHB vs SCHG
Is SCHB or SCHG better?
They do different jobs. SCHB is a whole-market core at 0.03%. SCHG is the large-cap growth slice of that market at 0.04%, with 60% of its money in ten stocks. SCHG returned 18.66% a year over the ten years to 31 August 2026 against 14.81% for SCHB, but SCHB was ahead over the latest year.
How much do SCHB and SCHG overlap?
51.3% by weight, using both funds' 31 May 2026 SEC filings. All 192 SCHG holdings were also in SCHB, so 99.9% of SCHG sits inside SCHB, while only 51.3% of SCHB sits inside SCHG.
Should I own both SCHB and SCHG?
Only if you want a deliberate growth overweight. SCHB already holds every SCHG stock, so adding SCHG increases your weight in the same mega-caps rather than adding new companies.
Which is cheaper, SCHB or SCHG?
SCHB, at 0.03% against 0.04%. On $10,000 that is $3 against $4 a year.
Why is SCHG's dividend so much lower?
Growth companies tend to reinvest earnings instead of paying them out, and SCHG excludes many dividend payers SCHB holds, such as JPMorgan, Exxon and Johnson & Johnson. The 30-day SEC yields on 1 October 2026 were 0.36% for SCHG and 1.02% for SCHB.
Is SCHG riskier than SCHB?
It is more concentrated: 60.1% in its top ten against 36.1%. Its worst quarter in the prospectus period was a 22.27% loss in mid-2022, against 20.91% for SCHB in early 2020.
Does SCHB include small-cap stocks?
Yes. Its index covers the largest 2,500 US companies, so it reaches well into mid and small caps. SCHG draws only from the largest 750, and only from the growth side of those.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"SCHB vs SCHG: The Whole Market or Its Growth Slice, and SCHG Is Half of SCHB Already." Wealthy Pot, 2026. https://wealthypot.com/schb-vs-schg/
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