Wealthy PotSCHG vs VUG: Two Large-Cap Growth ETFs, Two Definitions of Growth
SCHG and VUG are the two go-to low-cost ETFs for large U.S. growth companies, and they own many of the same stocks. But they are built on different indexes, which define "growth" differently and hold different numbers of companies. There is also news many comparisons have missed: VUG's expense ratio is now 0.03%, cheaper than SCHG's 0.04%, after Vanguard's 2026 fee cuts. And VUG has a new name: Vanguard now calls it the Vanguard Morningstar Growth ETF.
The Short Answer
- Same style: both hold large U.S. companies classed as growth stocks.
- Different index house: SCHG follows a Dow Jones index, VUG a Morningstar index.
- Different breadth: SCHG held 190 stocks, VUG 147.
- VUG is now cheaper: 0.03% against 0.04%, a $1 a year difference on $10,000.
SCHG vs VUG Side by Side
| Feature | SCHG | VUG |
|---|---|---|
| Full name | Schwab U.S. Large-Cap Growth ETF | Vanguard Morningstar Growth ETF |
| Index | Dow Jones U.S. Large-Cap Growth Total Stock Market Index | Morningstar US Large Cap Growth Index |
| Expense ratio | 0.04% | 0.03% |
| Number of holdings | 190 | 147 |
| Recent share split | 4-for-1, October 2024 | 6-for-1, April 2026 |
What Counts as Growth
There is no single definition of a growth stock. Each index provider scores companies on measures such as expected and historical earnings growth, sales growth and valuation, then sorts the large-cap universe into growth and value. Dow Jones and Morningstar use different formulas and different cut-offs, so the two funds agree on the obvious names and disagree at the margins.
That is where the holdings gap comes from. SCHG's index keeps more companies in its growth bucket, so SCHG holds about 40 more stocks than VUG. In market-value-weighted funds the largest growth companies dominate both, so the day-to-day behaviour is similar; the differences show up in the smaller positions and in how each index handles stocks near the growth/value line.
The Fee Flip
Vanguard recently cut expense ratios on 84 share classes across 53 funds, and VUG was one of them. It now charges 0.03% to SCHG's 0.04%, which makes the older "SCHG is the cheap one" advice out of date. On a $50,000 position that is $5 a year. It is a reason to prefer VUG if you are starting fresh, but it is almost never worth selling SCHG in a taxable account to capture, because realizing a gain would cost far more than a basis point.
Growth Funds Are Concentrated
Whichever you choose, know what you are buying. A large-cap growth fund holds a fraction of the stock market, and because it weights by market value, a handful of the biggest technology and communication companies make up a large share of it. That concentration drives both funds' strong years and their sharp drawdowns. If your core holding is already an S&P 500 or total-market fund, adding either one increases your bet on those same giants. See VUG vs VOO for how a growth fund compares with the whole S&P 500.
Which One Fits You
- Choose VUG if you want the lower fee and a slightly more concentrated list of growth companies.
- Choose SCHG if you prefer a somewhat broader growth basket or already build your portfolio with Schwab funds.
- Keep what you have if you already own one in a taxable account. The fee gap is too small to justify realizing gains.
- Do not hold both. They overlap heavily, so owning both doubles the same bet.
FAQ
Is SCHG or VUG cheaper?
VUG. Its expense ratio is 0.03% after Vanguard's 2026 fee cuts; SCHG's is 0.04%.
Why does SCHG hold more stocks than VUG?
Its Dow Jones index classifies more large companies as growth. SCHG held 190 stocks and VUG 147 at the latest counts.
Did VUG change its name?
Yes. Vanguard now lists it as the Vanguard Morningstar Growth ETF, tracking the Morningstar US Large Cap Growth Index. The ticker is still VUG.
Are SCHG and VUG the same?
No, but they are close. Both hold large U.S. growth stocks with heavy overlap; their indexes draw the growth line differently.
Should I switch from SCHG to VUG for the lower fee?
In a retirement account the switch costs nothing in tax. In a taxable account, selling SCHG at a gain would usually cost more than the one-basis-point saving.
This article is for general information and is not investment advice. Fund figures were taken from Schwab's and Vanguard's published fund pages on 2026-09-23 and can change; confirm current figures before you invest.