The Vanguard Russell 1000 Growth ETF (VONG 1.40%) and the Schwab U.S. Large-Cap Growth ETF (SCHG 1.53%) are both designed to give investors broad exposure to growth-focused U.S. large-cap stocks.
This comparison highlights their differences in cost, portfolio construction, sector exposure, and historical risk, helping investors decide which fund may better align with their preferences.
Snapshot (cost & size)
| Metric | VONG | SCHG |
|---|---|---|
| Issuer | Vanguard | Schwab |
| Expense ratio | 0.07% | 0.04% |
| 1-yr return (as of Jan. 12, 2026) | 19.84% | 18.77% |
| Dividend yield | 0.45% | 0.36% |
| Beta (5Y monthly) | 1.16 | 1.17 |
| AUM | $45 billion | $53 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
SCHG is slightly more affordable with a lower annual expense ratio, while VONG has an advantage with its higher dividend yield.
Performance & risk comparison
| Metric | VONG | SCHG |
|---|---|---|
| Max drawdown (5 y) | -32.72% | -34.59% |
| Growth of $1,000 over 5 years | $1,980 | $2,049 |
What's inside
SCHG tracks large U.S. growth companies, with a portfolio of 198 holdings. The fund is heavily tilted toward technology (making up 45% of total assets), followed by communication services (16%) and consumer cyclical (13%). Its top positions are Nvidia, Apple, and Microsoft.
VONG, in contrast, spreads its assets across 391 stocks, offering greater diversification. Its largest sector is also technology, but it makes up close to 53% of total assets. VONG’s top holdings mirror those of SCHG, but with slightly higher individual weights. Both funds avoid leverage, currency hedging, or other structural quirks.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
VONG and SCHG have performed similarly over the last 12 months and five years, and with similar betas and max drawdowns, they've also experienced roughly the same levels of volatility.
Where they differ, however, is in their diversification and sector allocations. VONG holds roughly double the number of stocks as SCHG, but it's also more concentrated on the tech sector.
The two funds share the same top three holdings, but those stocks make up around 35% of VONG's portfolio compared to around 29% for SCHG. A greater concentration on a small number of stocks can be both a risk and an asset, depending on how those stocks perform.
If the tech sector -- and specifically, Nvidia, Apple, and Microsoft -- continue to thrive, VONG could have a slight edge on returns. But if they falter, it could hit VONG harder than SCHG.
SCHG also charges a slightly lower expense ratio, at 0.04% compared to VONG's 0.07%. In other words, investors can expect to pay either $4 or $7 per year, respectively, for every $10,000 invested. VONG's higher dividend yield, however, can help claw back some of that cash with greater income potential.
Glossary
ETF (Exchange-traded fund): A fund holding a basket of securities that trades on an exchange like a stock.
Expense ratio: The annual fee a fund charges investors, expressed as a percentage of assets invested.
Dividend yield: Annual dividends paid by a fund or stock divided by its current share price.
Beta: A measure of how volatile an investment is compared with a benchmark index, often the S&P 500.
AUM (Assets under management): The total market value of all assets a fund or manager oversees.
Max drawdown: The largest peak-to-trough decline in an investment’s value over a specific period.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Growth stocks: Companies expected to grow earnings faster than the market, often reinvesting profits instead of paying high dividends.
Large-cap: Companies with relatively large market capitalizations, typically tens or hundreds of billions of dollars.
Sector exposure: The percentage of a fund’s assets invested in specific industries, such as technology or healthcare.
Index-tracking fund: A fund designed to replicate the performance of a specific market index by holding similar securities.
Concentrated portfolio: A fund that holds relatively few positions or has large weights in its top holdings.
