ETF Comparison

SCHG vs VGT: Which Is the Better Pick in 2026?

A head-to-head comparison of Schwab U.S. Large-Cap Growth ETF and Vanguard Information Technology ETF covering yield, cost, risk, and income potential.

Data updated May 20, 2026

Schwab

ETFs16

Total AUM$446.3B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is known for offering low-cost, broadly accessible ETFs designed for individual investors seeking simplicity and affordability. The company's focused lineup of two ETFs targets complementary investment strategies: SCHD emphasizes dividend income for conservative investors, while SCHG pursues growth opportunities for those seeking capital appreciation. Both funds reflect Schwab's commitment to minimizing fees and providing straightforward core portfolio holdings.

See our curated list of related YouTube videos on SCHG.

See all Schwab ETFs

Vanguard

ETFs48

Total AUM$11763.3B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that serve as core portfolio holdings for individual investors. Their fund lineup emphasizes core equity exposure and dividend income strategies, with offerings spanning domestic growth (VGT, VUG), broad market indices (VOO), dividend-focused portfolios (VYM, VIG), and international high dividend yield opportunities (VONG, VYMI). The issuer's seven funds are characterized by expense ratios among the industry's lowest and a focus on long-term, buy-and-hold investors seeking diversified equity exposure.

See our curated list of related YouTube videos on VGT.

See all Vanguard ETFs

Side-by-side snapshot

	SCHG	VGT
Full name	Schwab U.S. Large-Cap Growth ETF	Vanguard Information Technology ETF
Issuer	Schwab	Vanguard
Last Close	$34.19 as of May 20, 2026	$112.13 as of May 20, 2026
Distribution yield	0.36%	0.33%
Expense ratio	0.04%	0.09%
AUM	$55.6B	$146.5B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Large-Cap Growth Total Stock Market Index	Basket (Vanguard Information Technology ETF holdings)
Objective	Capital Appreciation	Seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, including technology software and services, hardware and equipment, and semiconductor manufacturers.
Asset class	Equity	Equity
Inception date	12/11/2009	01/26/2004
Beta	1.17	1.29
Last dividend	$0.04	$0.09
Ex-dividend date	03/25/2026	03/24/2026

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Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Quick verdict

SCHG (Schwab U.S. Large-Cap Growth ETF) and VGT (Vanguard Information Technology ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHG offers the higher yield at 0.36% vs 0.33% for VGT. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHG is cheaper with an expense ratio of 0.04% compared to 0.09%.

They track different benchmarks: SCHG is linked to Dow Jones U.S. Large-Cap Growth Total Stock Market Index while VGT tracks Basket (Vanguard Information Technology ETF holdings), which means their performance drivers differ.

VGT is the larger fund by assets ($146.5B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SCHG would generate roughly $3.00/month, while VGT would produce $2.75/month, at current distribution rates. Both pay quarterly distributions.

SCHG yield0.36%

VGT yield0.33%

Monthly diff on $10K$0.25

Cost & efficiency

Over 10 years on $10,000, SCHG would cost approximately $40 in fees vs $90 for VGT (simplified, not compounded). The $50.00 difference may be offset by yield or performance.

SCHG ER0.04%

VGT ER0.09%

Strategy & risk

SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index with a capital appreciation approach, while VGT tracks Basket (Vanguard Information Technology ETF holdings) using a basket strategy. Beta is 1.17 for SCHG and 1.29 for VGT, indicating SCHG is less volatile relative to the market.

SCHG beta1.17

VGT beta1.29

Fund details

SCHG is managed by Schwab (launched 12/11/2009) with $55.6B in assets. VGT is managed by Vanguard (launched 01/26/2004) with $146.5B in assets.

SCHG AUM$55.6B

VGT AUM$146.5B

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Frequently asked questions

Is SCHG or VGT better for dividend income?

It depends on your goals. SCHG currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SCHG and VGT?

SCHG (Schwab U.S. Large-Cap Growth ETF) tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index with a capital appreciation strategy, while VGT (Vanguard Information Technology ETF) tracks Basket (Vanguard Information Technology ETF holdings) with a basket approach. They are issued by Schwab and Vanguard respectively.

Can I hold both SCHG and VGT?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, SCHG or VGT?

SCHG has an expense ratio of 0.04% while VGT charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SCHG vs VGT generate?

At current rates, $10,000 in SCHG would generate roughly $3.00 per month ($36.00 annually). The same in VGT would produce about $2.75 per month ($33.00 annually).

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SCHG vs VGT — at a glance

Generated April 2026 from current fund data.

Overview

SCHG and VGT are both large, low-cost equity ETFs tracking growth-oriented U.S. stock baskets, but they differ fundamentally in scope and sector focus. SCHG holds the broad Dow Jones U.S. Large-Cap Growth Index across all sectors, while VGT is a pure-play technology fund tracking the MSCI U.S. information technology sector. For investors choosing between them, the decision hinges on whether you want diversified large-cap growth exposure or concentrated bets on software, semiconductors, and tech hardware.

How they differ

The biggest distinction is breadth versus concentration. SCHG captures large-cap growth across the entire market—financials, healthcare, consumer, industrials—whereas VGT holds only technology stocks. That sector focus means VGT has higher beta (1.18 vs. SCHG's 1.16) and a wider 52-week range ($484.86 to $806.99 versus $22.74 to $33.74), reflecting amplified sensitivity to tech cycles.

Second, VGT is substantially larger at $121 billion AUM compared to SCHG's $48 billion, which shouldn't matter much for either (both are extremely liquid), but signals the market's current appetite for tech exposure. Third, expense ratios are nearly identical—SCHG at 0.04% and VGT at 0.09%—though SCHG's lower fee gives a marginal edge on long-term drag. Dividend yields are nearly flat (SCHG 0.39%, VGT 0.38%), so neither is an income play; both are quarterly payers and designed for total-return capture.

Who each is best for

SCHG: Long-term investors seeking broad large-cap growth exposure with minimal overlap to existing holdings; best suited for core portfolio roles where diversification across sectors matters and fee drag should be minimized.

VGT: Growth-focused investors with conviction in technology's structural tailwinds and higher risk tolerance; ideal for portfolio sleeves where sector concentration is intentional and can be sized appropriately within a broader allocation.

Key risks to know

Sector concentration (VGT). Technology represents roughly one-quarter of the S&P 500. Holding 100% of VGT there creates significant drawdown risk if tech underperforms for an extended period; SCHG's diversification cushions against single-sector downturns.

Beta and volatility (VGT). At 1.18 beta, VGT amplifies market moves in both directions. A 20% market decline could mean a 24% loss in VGT versus roughly 23% in SCHG—meaningful over time if you're rebalancing or depending on the portfolio for withdrawals.

Growth style rotation. Both funds emphasize growth-oriented companies, making them sensitive to interest rate moves and inflation expectations. Rising rates tend to hurt high-multiple growth stocks disproportionately; value-oriented investors may find these funds cyclically vulnerable.

Valuation risk. Technology particularly carries elevated valuation multiples relative to historical norms. Earnings disappointment in megacap tech names could compress valuations sharply across VGT's concentrated basket.

Bottom line

If you want diversified large-cap growth with the lowest fees and broadest sector exposure, SCHG is the cleaner choice. If you're building a thematic tech position and can tolerate sector-level volatility, VGT offers deeper concentration at a reasonable cost. Neither is a yield vehicle—both are total-return funds. Past performance doesn't predict future returns, and concentration always cuts both ways.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.