Wealthy PotSCHG vs VOO: Large-Cap Growth vs the Whole S&P 500
SCHG and VOO are both cheap, popular index ETFs, but one is a slice and the other is the whole pie. SCHG holds only large-cap growth stocks; VOO holds the entire S&P 500. Growth has beaten the broad market over the past decade, but that outperformance comes with more concentration and bigger swings. This guide uses figures pulled straight from the funds' own documents.
The Short Answer
- Want one diversified core holding? VOO. The S&P 500 spans all sectors and both growth and value, the standard U.S. large-cap core at a rock-bottom 0.03%.
- Want to tilt toward the market's fastest growers and accept more risk? SCHG. It holds only large-cap growth stocks, has out-returned the S&P 500 over the past decade, and is also very cheap (0.04%), but it's more concentrated and more volatile.
SCHG is a subset of the large-cap market that VOO already contains, so this is a decision about tilt and risk, not two separate universes.
What Each One Owns
- SCHG is the Schwab U.S. Large-Cap Growth ETF. It tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, about 195 holdings screened for growth characteristics, heavily weighted toward technology and other fast-growing mega-caps, and it pays very little in dividends.
- VOO is the Vanguard S&P 500 ETF. It tracks the S&P 500, about 506 large-cap companies across every sector, including both the growth names SCHG holds and the value names it screens out.
Because the S&P 500 is already growth-heavy by weight, SCHG and VOO share their biggest holdings, SCHG just concentrates further into them and drops the value half of the market.
SCHG vs VOO Side by Side
| Feature | SCHG | VOO |
|---|---|---|
| Fund | Schwab U.S. Large-Cap Growth ETF | Vanguard S&P 500 ETF |
| Index tracked | Dow Jones U.S. Large-Cap Growth TSM | S&P 500 |
| Expense ratio | 0.04% | 0.03% |
| What it holds | ~195 large-cap growth stocks | ~506 large-cap stocks (all sectors) |
| SEC 30-day yield | ~0.37% | ~0.98% |
| Tilt | Large-cap growth (tech-heavy) | Broad large-cap (growth + value) |
| 10-year return (avg annual, NAV) | 18.66% | 15.47% |
| Growth of $10,000 over those 10 years (hypothetical) | $55,370 | $42,140 |
| Inception | Dec 11, 2009 | Sep 7, 2010 |
The Return Gap, Explained
SCHG's ~18.7% a year against VOO's ~15.5% over the past decade looks decisive, but read it carefully. The 2010s and 2020s were an exceptional run for large-cap growth, led by a handful of mega-cap technology companies. SCHG concentrates into exactly those names, so it rode the trend harder, and it will fall harder when growth is out of favor. In the 2022 downturn, for instance, growth funds dropped substantially more than the broad S&P 500.
Betting on SCHG over VOO is really a bet that growth keeps beating value. That has been right recently, but there have been long stretches (much of the 2000s) when the opposite was true. Choosing SCHG purely because of its trailing return is the recency-bias trap covered in why time in the market beats timing it.
Which One Fits You
Choose VOO if: you want a single, diversified core that holds the whole S&P 500 across all sectors, and you'd rather not make a growth-vs-value bet. It's the lower-risk, more balanced foundation, and it still owns all the big growth names.
Choose SCHG if: you specifically want a growth tilt, you have a long horizon and the stomach for bigger drawdowns, and you understand you're concentrating into mega-cap tech. Many investors use SCHG as a satellite tilt around a VOO or total-market core rather than as the whole portfolio. For Vanguard's version of the same idea, compare VUG vs VOO.
FAQ
Is SCHG or VOO better?
They serve different roles. VOO is a diversified S&P 500 core; SCHG is a large-cap growth tilt that has out-returned VOO over the past decade but with more concentration and volatility. For a single core holding, VOO; for a deliberate growth tilt, SCHG. Both are very cheap (0.04% vs 0.03%).
Why has SCHG outperformed VOO?
The past decade strongly favored large-cap growth and technology, which SCHG concentrates in and VOO holds only partially. That drove SCHG's higher return, but also means it falls more when growth underperforms. Past performance doesn't predict future results.
Is SCHG riskier than VOO?
Yes. SCHG holds fewer stocks (~195 vs ~506), skips the value half of the market, and concentrates in tech-heavy mega-caps, so it tends to swing more in both directions than the broad S&P 500.
Can I hold both SCHG and VOO?
Yes, and it's a common setup: VOO as the diversified core with SCHG layered on as a growth tilt. Just remember they overlap heavily on the largest growth names, so SCHG mostly amplifies exposure VOO already has.
Related comparisons: VUG vs VOO · VOO vs VOOG · QQQ vs VOO · SCHD vs VOO · All ETF comparisons
Primary sources: expense ratios, indexes, holdings, yields, and returns are from the issuers' official documents for SCHG (Schwab) and VOO (Vanguard). Both 10-year returns as of Jun 30, 2026; SCHG SEC yield as of Sep 10, 2026; VOO SEC yield as of Aug 31, 2026. For background, see the SEC's Investor.gov guide to mutual funds and ETFs.
This article is for educational purposes only and is not investment advice. Investing involves risk, including possible loss of principal, and past performance does not guarantee future results. Growth funds can be more volatile and concentrated than the broad market. Expense ratios, yields, and holdings change over time; confirm current figures on the issuer's site before investing. Consult a qualified financial professional before making investment decisions.
