2022 has been a tumultuous year for stocks. The S&P 500 is still down 17% year to date. Meanwhile, the Nasdaq and the Dow are 14% and 12.5% lower year to date, respectively. Recent strength has led many investors to wonder if the market has found its turning point.
There’s no denying that the market has a history of rebounding and moving higher over the long run. That’s especially true for the stocks that have considerable growth potential. However, factors like regulatory concerns, geopolitical and supply chain issues and possible shifts in tax laws threaten to take the wind out of the sails of any individual stock without much warning.
Along with the potential for supercharged returns from large-cap growth comes the potential for volatility. Investing in a fund fixed on growth can help diversify your portfolio while reducing risk. Choosing the right basket of growth stocks can help maximize your earnings while tapping into a wide array of companies from industries with high growth potential, like information technology and financial services. Today we’ll highlight a top-rated large-cap growth investment for our readers who want to reap the benefits of tickers with high growth potential while cutting back on exposure to the risk involved with individual stocks.
The Schwab US Large-Cap Growth ETF (SCHG) is a low-cost option for those looking to diversify into growth through a basket of large-cap equities. The fund tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market index.
Unlike the technology-focused Invesco QQQ Trust (QQQ), SCHG offers exposure to companies from many growth-oriented sectors. There is, of course, a sector bias toward tech, which makes up about 41% of the portfolio spread among consumer discretionary, communication services, health care, and other sectors. Of the remaining 59% industrials, health care, energy, and consumer goods receive equal weighting.
The fund selects its growth stocks from 750 of the largest companies (by market cap) based on fundamental factors, including projected earnings growth as well as trailing revenue and earnings growth. Since it draws from a larger selection universe, SCHG has a significant mid-cap tilt. The index rebalances quarterly and undergoes an annual reconstitution in September.
Any actively-managed product is ultimately a wager on the portfolio managers who pick the stocks. With a long history of outperforming peers, Cathie Wood, ARK Invest’s founder and chief investment officer, is the curator of ARK’s investment philosophy and the ultimate authority in the firm’s investment decisions.
The Schwab US Large-Cap Growth ETF (SCHG)
- Net Assets 13.07B
- Price / Earnings Ratio 32.88
- Price / Book Ratio 7.66
- YTD Daily Total Return -23.66%
- Yield 0.47%
- Expense Ratio 0.04%
- Number of Holdings 41
- Top Holdings Apple (AAPL), Microsoft (MSFT), Amazon (AMZN)
Should you invest in SCHG right now?
Before you consider buying SCHG, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not SCHG.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
