SCHG's Concentrated Holdings Drag Down Large-Cap Growth ETF

The Schwab U.S. Large-Cap Growth ETF (SCHG) is marketed as a diversified large-cap growth fund, but its holdings reveal a narrower bet than expected.

At 9.83%, SCHG's holding in Apple (AAPL) is larger than its positions in Tesla (TSLA), Meta Platforms (META), and Palantir (PLTR) combined, which totals 8.41%.

The fund holds nearly two hundred stocks, but the top three holdings - NVIDIA (NVDA) at 11.01%, Apple at 9.83%, and Microsoft (MSFT) at 7.17% - control close to a third of the portfolio.

This concentration may explain why SCHG trailed the SPDR S&P 500 ETF Trust (SPY) by roughly 3 points and lost to the Invesco QQQ Trust (QQQ) by nearly 7 points year-to-date, despite its own return of 10.12%.