Schwab U.S. Large-Cap Growth ETF (ARCA: SCHG)

Ultime notizie per Schwab U.S. Large-Cap Growth ETF (ARCA:SCHG)

Schwab U.S. Large-Cap Growth ETF

Technology

Healthcare

Consumer Cyclical

Communication Services

Financial Services

Industrials

Consumer Defensive

Basic Materials

Energy

Real Estate

Other

Utilities

To pursue its goal, the fund generally invests in stocks that are included in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. The index includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The Dow Jones U.S. Large-Cap Growth Total Stock Market Index includes the components ranked 1-750 by full market capitalization and that are classified as growth based on a number of factors. The index is a float-adjusted market capitalization weighted index. As of August 31, 2023, the index was composed of 241 stocks.

Apple Inc

Microsoft Corp

Nvidia Corp.

Amazon.Com Inc

Meta Platforms, Inc.

Alphabet Inc Cl A

Alphabet Holding Company Inc.

Broadcom, Inc., 8.00%

Tesla Inc Common Stock Usd 0.001

Eli Lilly and Company

Schwab US Large-Cap Growth ETF

The Reddit Trade

Personal Finance

SCHD

SCHG

VXUS

La community online si interroga sull&#39;affidabilità dell&#39;ETF: strategia vincente a lungo termine o rischio di concentrazione eccessiva?

SCHD: un investimento sicuro per 20 anni? Ecco cosa risponde Reddit

<a href="https://www.benzinga.com/markets/25/01/43239447/62-year-old-earning-up-to-120-000-in-dividends-shares-8-stock-picks-i-lived-below-my-means-there-isn">Dividend shares</a> and high-yield funds are among the most popular investment vehicles people choose to rely on for a consistent payout or to grow their money.
One of the most talked about dividend-oriented ETFs is Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), which tracks the Dow Jones U.S. Dividend 100 Index.&nbsp;
SCHD is known for its focus on high-quality, dividend-paying U.S. companies, making it a go-to fund among investors seeking reliable <a href="https://www.benzinga.com/markets/25/01/43005162/dividend-investor-retired-at-39-living-off-dividend-income-shares-his-top-4-stocks-its-absolutely-do">income</a>. But is it a smart move to allocate a considerable portion of your portfolio to SCHD? This question lies at the heart of a recent Reddit post that sparked a lively debate among the board&#8217;s users.
Don't Miss:
<ul>
<li><a href="https://www.benzinga.com/money/are-you-rich">Are you rich?</a> Here&#8217;s what Americans think you need to be considered wealthy.</li>
<li>These five entrepreneurs are worth $223 billion –<a href="https://www.benzinga.com/money/arrived-homes-private-credit-fund"> they all believe in one platform that offers a 7-9% target yield with monthly dividends</a></li>
</ul>
The poster is an investor who has already allocated $100,000 to SCHD, another $100,000 to Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), and has also bought some individual stocks. His end goal is to build a portfolio that generates dependable income in the long run without taking risks.
&#8220;Is it stupid to put in that much into SCHD instead of spreading it, or? I just want a safe place to keep it that is better than a money market account or [high-yield savings account],&#8221; the poster wrote.
He also mentioned he&#8217;s a bit concerned about the long-term performance of SCHD since he&#8217;s planning on investing for 20 more years and is also considering diversifying into other assets like real estate investment trusts or other dividend-focused stocks but isn&#8217;t sure this is necessary.
Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. <a href="https://www.benzinga.com/money/masterworks">See which asset class has outpaced the S&amp;P 500 (1995-2024) – and with near-zero correlation.</a>
The Reddit community offered the poster insights in the comments, so let&#8217;s dive right in.
<h2 class="wp-block-heading">20-Year Investment Plan? Reddit Debates As Investor Pours $100,000 Into SCHD</h2>
SCHD is a Solid Choice for Long-Term Dividend Growth
Many Redditors praised SCHD as a reliable ETF for long-term dividend growth, especially for investors not willing to make risky moves.
&#8220;Putting $100,000 into SCHD and letting it go to work for 20 years–that is the epitome of smart investing,&#8221; a comment reads.
&#8220;Seems like you are seeking low-risk monthly income. SCHD is fine,&#8221; another Reddit user said.
One commenter agreed with the poster&#8217;s approach and shared that he would sleep well at night if he had the same allocation.
&#8220;Not stupid at all. It&#8217;s a fine investment and will pay you to wait during market downturns. Personally, I have about 30% of my portfolio in bond ETFs for diversification, but I could sleep well at night with an allocation like yours too,&#8221; he said.
Another Redditor echoed the above comment but also mentioned that the fund should double the dividends every few years with a dividend reinvestment plan.
&#8220;Yeah, it's a solid place to park $100,000. My portfolio looks really similar, I have no trouble sleeping at night. SCHD dividend growth should allow your dividend to double every 6 to 7 years with DRIP,&#8221; he wrote.
Trending: Can you guess how many Americans successfully retire with $1,000,000 saved?<a href="https://www.benzinga.com/money/1milsaved"> The percentage may shock you</a>.
Consider Diversifying to Mitigate Risk
While most commenters were on board with the poster&#8217;s allocation to SCHD, some Reddit investors suggested he diversify a bit further to mitigate risk.
&#8220;It is not stupid. However, I might suggest you consider 50% in SCHD and 50% in [Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>)],&#8221; a comment reads.
One Reddit user recommended the investor allocate a part of his portfolio to non-U.S. assets to hedge against any rotations of U.S. stocks.
&#8220;I guess the only obvious downside, besides being all in stocks, is that it&#8217;s very U.S.-centric. While U.S. stocks have been the place to be for 20+ years, there are no guarantees that this will continue. I have some money in [Vanguard Total International Stock ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vxus#NYSE">VXUS</a>)] as a hedge against any rotations out of U.S. stocks. Not a lot–maybe 5-7% of my portfolio,&#8221; the user said.
See Also: Dogecoin millionaires are increasing –<a href="https://www.benzinga.com/money/dogecoin-millionaires"> investors with $1M+ in DOGE revealed!</a>
Another Redditor touched on international exposure, implying that such an allocation would enhance his portfolio resilience.
&#8220;I agree you should put the $100,000 and let it sit. You can let that sit and anything you invest outside of that, start to diversify. Someone said SCHG as well. That would be another good goal to set, just to get some international holdings. I would mix an international ETF and some dividend stocks in there. When you're older you could shift into bonds, higher dividend yield stocks, and keep SCHD if the dividend payout is significant enough,&#8221; his comment reads.
&#8220;It&#8217;s not stupid at all. I would suggest diversification in your portfolio though, so don&#8217;t make that 100% of your investment strategy,&#8221; another Redditor wrote.
Read Next:
<ul>
<li>How do billionaires pay less in income tax than you?<a href="https://www.benzinga.com/money/tax-deferring-adv"> Tax deferring is their number one strategy</a>.</li>
<li><a href="https://www.benzinga.com/money/arrived-centennial">Jeff Bezos-Backed Arrived Homes Hits A Big Sale On Charlotte Property – Investors Earning A 34.7% Return</a></li>
</ul>

Stupid 20-Year Investment Plan? Investor Questions $200,000 Dividend Strategy – 'Is It Stupid To Put In That Much Into SCHD?'

<a href="https://www.benzinga.com/markets/25/01/43005162/dividend-investor-retired-at-39-living-off-dividend-income-shares-his-top-4-stocks-its-absolutely-do">Dividend</a> investing has long been a favorite strategy for those seeking a reliable <a href="https://www.benzinga.com/markets/25/02/43679558/how-this-39-year-old-with-no-college-degree-built-passive-income-streams-that-pay-18-000-per-month">passive income</a> stream, especially as they approach <a href="https://www.benzinga.com/personal-finance/25/02/43768114/im-66-still-working-maxing-out-my-401k-and-could-retire-next-year-should-i-stop-saving-for-retirement-and-start-living">retirement</a>. By investing in dividend-paying stocks or ETFs, individuals can generate stable earnings while potentially profiting from capital appreciation.
Compared to growth-focused investments, the yield generated is often lower. Instead, this approach offers more safety and fewer risks and is a favorite of risk-averse investors.
In a recent Reddit post, a user shared his ambitious retirement plan: at 50, the investor has decided to put $3,000 a month into the Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) to accumulate close to $1 million in 10 years.
Don't Miss:
<ul>
<li>Many are using retirement income calculators to check if they&#8217;re on pace —<a href="https://www.benzinga.com/money/how-do-i-calculate-my-retirement-income-adv"> here&#8217;s a breakdown on what&#8217;s behind this formula.</a></li>
<li>Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die."<a href="https://www.benzinga.com/money/warren-buffet-make-money-when-you-sleep"> Here&#8217;s how you can earn passive income with just $100.</a></li>
</ul>
His main objective is to generate $25,000 annually in dividends, which, alongside his $2,000 monthly Social Security benefits, would provide him with a comfortable retirement income of around $4,000 per month, a good sum since he&#8217;s considering retiring to a low cost of living country like Mexico or Southeast Asia.
The investor is focused on SCHD, and despite his confidence in the ETF, he is open to feedback and alternative strategies, as he wants to ensure his plan is realistic.
His post has received a ton of advice and suggestions, so let&#8217;s dive right into that.
Trending: It&#8217;s no wonder Jeff Bezos holds over $250 million in art — <a href="https://www.benzinga.com/money/masterworks">this alternative asset has outpaced the S&amp;P 500 since 1995, delivering an average annual return of 11.4%. Here&#8217;s how everyday investors are getting started.</a>
<h2 class="wp-block-heading">$25,000/Year in Dividends With SCHD? Redditors Weigh In</h2>
Adjust Your Expectations
In an overwhelming majority, the Redditors who commented below the investor&#8217;s post agreed that the expectations he set were too high, so he needs to either adjust these or rethink his strategy.
&#8220;You'll reach half your goal if you're lucky in 10 years. Use a compound interest calculator and run numbers,&#8221; a Redditor wrote.
&#8220;Your calculations are wrong. $3,000/month for 10 years with 7% interest is $516,000," another comment says.
A user underscored the impact of inflation on the investor&#8217;s retirement income, calculating the yearly dividends he would get with his investment.
&#8220;At 10% returns, you will be just shy of $600,000. With a 3.5% yield, you will be looking at about $21,000 per year in dividends. This is not adjusted for inflation. Inflation-adjusted 7% return will get you $500,000. With a 3.5% yield, you will be looking at about $17,500 per year in dividends. It will help if you can increase the contributions for at least the first 5 years and do it for 12 years instead of 10 till you are 62 years of age,&#8221; he said.
See Also: Can you guess how many Americans successfully retire with $1,000,000 saved?<a href="https://www.benzinga.com/money/1milsaved"> The percentage may shock you</a>.
Look Into Alternative Strategies and Diversify
Several users advised the poster to diversify his portfolio beyond SCHD to achieve his aim because while SCHD is a solid choice for dividend income, the fund may not provide the growth needed to reach $1 million in 10 years.
&#8220;If you want income in the shortest period of time you should look for a fund with a higher yield such as [NEOS S&amp;P 500 High Income ETF (CBOE: SPYI)] 11% yield, [NEOS Nasdaq-100 High Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqqi#NASDAQ">QQQI</a>)] 13%, or [Putnam BDC Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pbdc#NYSE">PBDC</a>)] 9%; Keep [Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vti#NYSE">VTI</a>)] and drop SCHD,&#8221; a Reddit user suggested.
This comment recommended the poster use a balanced approach by combining three ETFs.
&#8220;Maybe add a blend like a 3-fund portfolio. 50% SCHD, 25% [Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>)], and 25% [Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>)]. Work on compounding SCHD but get some growth and then convert it into SCHD in retirement,&#8221; the comment reads.
Another user advised the poster to move his money into a higher-yield asset as he approaches retirement.
&#8220;I had to reread your goal. My estimate is you will have around $600,000 in 10 years. Making $21,000 off of that is very easy to do if you move to a higher dividend fund like [JPMorgan Equity Premium Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jepi#NYSE">JEPI</a>)]/[JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jepq#NASDAQ">JEPQ</a>)] or SPYI. My average dividend income of $500,000 is $38,000 minus taxes. So well above what you expect. As you get closer to ten years, start moving into preferred stock or income funds mentioned above,&#8221; the user suggested.
Read Next:
<ul>
<li>Dogecoin millionaires are increasing –<a href="https://www.benzinga.com/money/dogecoin-millionaires"> investors with $1M+ in DOGE revealed!</a></li>
<li>The average American couple has saved this much money for retirement —<a href="http://www.benzinga.com/money/smartasset"> How do you compare</a>?</li>
</ul>

JEPI

JEPQ

PBDC

QQQI

SPYI

50-Year-Old Pours Cash Into SCHD, Plans Early Retirement Overseas – 'I'm Trying To Make About $25,000/Year In Dividends, Is This A Bad Idea?'

<a href="https://www.benzinga.com/trading-ideas/25/02/43827291/exclusive-will-trumps-tariffs-hurt-or-help-stock-market-59-say-this">Tariffs</a>, elevated mortgage rates, and the cost of maintaining a home amid soaring insurance and energy costs have caused pessimism amongst the home builders tasked with adding housing inventory.
The information comes from the National Association of <a href="https://www.benzinga.com/25/01/43246599/bofa-downgrades-dr-horton-and-smith-douglas-citing-cost-pressures-and-weak-roe-outlook">Home Builders</a><a href="https://www.nahb.org/news-and-economics/housing-economics/indices/housing-market-index"> NAHB</a>/Wells Fargo Housing Market Index, which tracks builders&#8217; confidence in single-family homes based on a monthly survey. February marked the lowest confidence level in five months.
<h2 class="wp-block-heading">Tariffs</h2>
According to NAHB,<a href="https://www.nahb.org/advocacy/top-priorities/material-costs/how-tariffs-impact-home-building"> 7%</a> of all goods used in new residential construction originate from a foreign nation. &#8220;With 32% of appliances and 30% of softwood lumber coming from international trade, uncertainty over the scale and scope of tariffs has builders further concerned about costs,&#8221; NAHB Chief Economist Robert Dietz said on its website.
Don't Miss:
<ul>
<li>CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast —<a href="https://www.benzinga.com/money/integris"> here&#8217;s how to invest in their private credit fund that targets 12% annual interest rate.</a></li>
<li>Coinbase&#8217;s latest promo gets you up to $200 in crypto (Seriously!) — <a href="http://coinbase-consumer.sjv.io/m5ALXy">Here's everything you need to know to take advantage of this offer.</a></li>
</ul>
NAHB Chairman Carl Harris<a href="https://www.nahb.org/-/media/NAHB/advocacy/docs/letter-to-president-potential-tariffs-013125.pdf?rev=4f33c6137e9846b1866e4692241d2a1d&amp;hash=C2AEFB98FFB519145B3C4DF50296B2B8"> sent a letter</a> to President Donald Trump urging him to exempt &#8220;critical construction materials&#8221; from his tariff policies.
&#8220;Imposing additional tariffs on these imports will lead to higher material costs, which will ultimately be passed on to home buyers in the form of increased housing prices,&#8221; he said in the letter dated Jan. 31.
<a href="https://www.corelogic.com/intelligence/will-trump-tariffs-harm-home-affordability/#framing-affordability">CoreLogic</a>, a real-estate data company, estimates that the higher costs of building materials could add between $17,000 and $22,000 to the cost of building an averagely priced newly constructed home, which is currently about $422,000.
Trending: Unlock the hidden potential of commercial real estate —<a href="https://equitymultiple.com/benzinga?invite=benzinga&amp;utm_campaign=product-promotion-earn&amp;utm_source=yahooFinance&amp;utm_medium=affiliate&amp;utm_content=unlockboost-yahoo"> This platform allows individuals to invest in commercial real estate offering a 12% target yield with a bonus 1% return boost today!</a>
<h2 class="wp-block-heading">Interest Rates</h2>
Lower interest rates could have made the Trump tariffs easier to digest. However, despite optimism last year for a series of <a href="https://www.benzinga.com/25/01/43319060/first-rate-cut-in-june-if-at-all-in-2025-economist-says-as-federal-reserve-holds-rates-steady">interest rate cuts</a>, stubborn inflation has caused the Fed to keep rates where they are, which is currently just below 7%, too high to move the needle on home buying.&nbsp;
&#8220;It will take people longer to buy homes as they wrestle with affordability,&#8221; Holden Lewis, home and mortgage expert at NerdWallet told<a href="https://www.marketwatch.com/picks/mortgage-rates-will-pull-back-4-pros-predict-where-mortgage-rates-will-go-in-february-2025-5e015a1c"> MarketWatch</a>. &#8220;As homes linger on the market, the inventory of for-sale homes will keep rising. This increase in supply will diminish upward pressure on prices. Home prices will rise this spring, but not as swiftly as they rose in the past.&#8221;
See Also: Commercial real estate has historically outperformed the stock market, and<a href="https://equitymultiple.com/benzinga?invite=benzinga&amp;utm_campaign=product-promotion-earn&amp;utm_source=yahooFinance&amp;utm_medium=affiliate&amp;utm_content=stockmarket-yahoo"> this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!</a>
<h2 class="wp-block-heading">Insurance</h2>
Compounding the effect of tariffs and interest rates is the soaring cost of <a href="https://www.benzinga.com/personal-finance/25/02/43728496/with-insurance-maintenance-costs-and-rising-home-prices-suze-orman-says-its-ok-to-just-rent">homeowners insurance</a>, particularly in disaster-prone states, as most recently seen with the LA wildfires. According to<a href="https://home.treasury.gov/system/files/311/Analyses_of_US_Homeowners_Insurance_Markets_2018-2022_Climate-Related_Risks_and_Other_Factors_0.pdf"> figures</a> released by the US Treasury Department for 2018-2022, insurance premiums have risen sharply across the country, with people living in the greatest climate-driven risks experiencing the steepest rises. Those in the top 20% of riskiest places for such perils paid, on average, 82% more than those in the 20% lowest climate risk zip codes.&nbsp;
This year,<a href="https://www.bankrate.com/insurance/homeowners-insurance/homeowners-insurance-cost/"> Bankrate</a> showed that the national average cost of home insurance is $2,258 per year for a policy with a $300,000 dwelling limit. —amounting to about $188 per month, a<a href="https://www.cnbc.com/select/homeowners-insurance-skyrocketing-how-to-lower-premium/"> marked increase</a> on the preceding two years.
The<a href="https://www.wsj.com/economy/housing/home-insurance-property-tax-vs-mortgage-cost-43ab76ed"> Wall Street Journal</a> calculated that insurance and taxes make up more than half of the monthly mortgage payment for 9% of single-family mortgages, up from less than 4% at the end of 2014. Adding tariffs and increased construction and home prices to the mix makes homeownership more difficult than ever for many Americans.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today.<a href="https://smartasset.com/retirement/find-a-financial-planner?utm_source=benzinga&amp;utm_campaign=ben&amp;utm_content=y2_5MilNestEgg"> SmartAsset&#8217;s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost</a> to decide which one is right for you.
<h2 class="wp-block-heading">Looking For Higher-Yield Opportunities In A Shifting Market?</h2>
The changing interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified <a href="https://www.benzinga.com/money/benzingas-favorite-high-yield-investments">some of the most attractive options for you to consider</a>.&nbsp;
For instance, the <a href="https://www.benzinga.com/go/equitymultiple-yf">Ascent Income Fund</a> from EquityMultiple targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets. With payment priority and flexible liquidity options, the Ascent Income Fund is a cornerstone investment vehicle for income-focused investors. First-time investors with EquityMultiple can now invest in the Ascent Income Fund with a reduced minimum of just $5,000. <a href="https://www.benzinga.com/go/equitymultiple-yf">Benzinga Readers: Earn a 1% return boost on your first EquityMultiple investment when you sign up here (accredited investors only)</a>.
Don't miss out on this opportunity to take advantage of high-yield investments while rates are high. <a href="https://www.benzinga.com/money/benzingas-favorite-high-yield-investments">Check out Benzinga's favorite high-yield offerings.</a>&nbsp;

DGRO

SPYD

Tariffs, Mortgage Rates, And High Housing Costs Have Caused Builders To Change Strategy On New Home Construction

On Wednesday, Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)&nbsp;announced the availability of the Brocade G710 24-port 64G switch, a <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/g43002072/broadcom-launches-the-industrys-lowest-latency-and-highest-efficiency-san-switch-for-rack-based-in" rel="noreferrer noopener">top-of-rack SAN switch</a>.
Brocade Gen 7 Fibre Channel combines cyber-resilient and autonomous SAN technology into this cost-effective platform that seamlessly integrates into rack-based storage solutions, the company said.
The Brocade G710 switch extends the 64G SAN portfolio, which includes fixed port switches, modular directors, extension switches, and management software.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">Nvidia and AI Chip Stocks Brace for Impact as Biden Administration Considers New China Export Ban: Report</a>
Purpose-built for small to mid-sized businesses, the Brocade G710 provides low-cost access to Gen 7 Fibre Channel technology.
At 460 ns port-to-port latency at 64G speed, it&#8217;s the industry&#8217;s lowest latency Fibre Channel switch. It is an energy-efficient Fibre Channel switch with a typical power draw of just 65 watts.
According to the company, the G710 is an affordable Gen 7 entry point that starts at just eight ports and can scale up to 24 ports to support growing environments.
The switch can address the most demanding application and storage requirements, supporting up to 64G speed and 1.5 Tb/s total bandwidth.
Designed with a cyber-resilient architecture, the Brocade G710 Switch ensures robust, high-level security for organizations&#8217; critical data and applications.
Broadcom&nbsp;stock surged over 106% in the last 12 months. Goldman Sachs Toshiya Hari noted that Broadcom <a target="_blank" href="https://www.benzinga.com/25/01/42924519/nvidia-amd-broadcom-lead-semiconductor-stock-decline-amid-us-china-ai-chip-export-ban-concerns-amd-downgraded-by-goldman-sachs-and-more" rel="noreferrer noopener">is favorably positioned</a> alongside Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). It is backed by the AI Semiconductor business, with an acceleration in Networking, a recovery in the cyclical parts of its Semiconductor portfolio, revenue growth, and margin expansion in Software.
Needham&#8217;s N. Quinn Bolton <a target="_blank" href="https://www.benzinga.com/25/01/42953261/nvidia-broadcom-and-marvell-positioned-for-growth-as-ai-demand-drives-semiconductor-momentum" rel="noreferrer noopener">projected upside from</a> the unit growth of XPUs, both general-purpose GPUs and hyperscaler custom ASICs.
Investors can gain exposure to Broadcom through Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Actions:&nbsp;AVGO stock is up 1.95% at $228.80 at last check Wednesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" target="_blank" rel="noreferrer noopener">Apple And Nvidia Supplier Taiwan Semiconductor Leads Semiconductor Market with 64% Share</a></li>
</ul>
Photo via Shutterstock

News

Tech

AVGO

NVDA

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Broadcom's Latest SAN Switch Offers Scalable, Energy-Efficient Solution for Growing Storage Demands

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock is trading higher on Monday.
Ken Mahoney, president and CEO of Mahoney Asset Management, told Bloomberg that <a target="_blank" href="https://www.benzinga.com/news/24/08/40282876/whats-going-on-with-nvidia-stock-on-friday" rel="noreferrer noopener">Nvidia&#8217;s valuation has</a> dropped to around 30 times forward earnings after the recent selloff, which could make the stock more appealing to long-term investors.
The analyst said that the key artificial intelligence beneficiary stock has been up 152% in the last 12 months despite losing ~15% in the previous 30 days.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12105211/newplot-9.png" alt="" class="wp-image-490061" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12105211/newplot-9.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/12105211/newplot-9-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia&#8217;s success reflects its success in building a &#8220;walled garden&#8221; of developers who build AI systems and other software with its chips, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/tech/ai/ai-nvidia-apple-amd-jensen-huang-software-bb581f5a" rel="noreferrer noopener">reports</a>.&nbsp;
This ecosystem, centered around Nvidia&#8217;s software platform CUDA, has made it nearly impossible for competitors to gain significant ground in the AI market.
Nvidia will likely have more leverage than its rivals as it continues to concentrate on its coding adeptness.
CUDA, launched in 2007, allows Nvidia&#8217;s specialized chips, GPUs, to run non-graphics software, including AI applications.
Jensen Huang, Nvidia&#8217;s CEO, describes this approach as &#8220;full-stack computing,&#8221; where the company provides the chips and the software necessary to build AI systems.
This strategy has solidified Nvidia&#8217;s position as the dominant player in the AI chip market, with an estimated 90% market share expected to continue for the next few years.
The AI chip market is projected to reach $400 billion annually by 2027.
Investors can gain exposure to Nvidia through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>).
Price Action: NVDA shares traded higher by 5.30% at $110.24 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Nvidia Blog

Media

What's Going On With Nvidia Stock On Monday?

Exchange-traded funds (ETFs) focused on growth equities &#8211; characterized by robust revenue growth, high valuations, and strong potential for innovation – experienced elevated <a href="https://www.benzinga.com/etfs">inflows in June.</a>
This surge in interest towards growth-linked funds coincided with a significant outperformance of growth over value stocks, reflecting increased investor confidence in the tech sector and disruptive innovations like artificial intelligence.
The eight largest growth-linked ETFs by assets under management (AUM) collectively experienced a substantial $12.2 billion in inflows from the beginning of the month through June 24.
Leading the pack, the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) saw the highest monthly inflows among its peers, attracting an impressive $5.68 billion. This remarkable figure is set to mark the Vanguard Growth ETF&#8217;s record monthly inflows, ranking second in June only to the nearly $10 billion attracted by the broader iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Growth ETF</th>
<th>AUM</th>
<th>June Flows (as of June 24)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard Growth ETF </td>
<td>$139.84B</td>
<td>$5.68B</td>
</tr>
<tr>
<td>IShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>)</td>
<td>$97.00B</td>
<td>$0.03B</td>
</tr>
<tr>
<td>IShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</td>
<td>$52.96B</td>
<td>$4.01B</td>
</tr>
<tr>
<td>Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>)</td>
<td>$30.62B</td>
<td>$0.44B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPYG#NYSE">SPYG</a>)</td>
<td>$29.40B</td>
<td>$0.47B</td>
</tr>
<tr>
<td>Vanguard Mega Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGK#NYSE">MGK</a>)</td>
<td>$22.39B</td>
<td>$1.08B</td>
</tr>
<tr>
<td>Vanguard Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VONG#NYSE">VONG</a>)</td>
<td>$20.81B</td>
<td>$0.08B</td>
</tr>
<tr>
<td>IShares Core S&amp;P U.S. Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IUSG#NYSE">IUSG</a>)</td>
<td>$18.94B</td>
<td>$0.15B</td>
</tr>
<tr>
<td>Vanguard Small-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBK#NYSE">VBK</a>)</td>
<td>$17.25B</td>
<td>$0.26B</td>
</tr>
</tbody>
<tfoot>
<tr>
<td>Total</td>
<td></td>
<td>$12.2B</td>
</tr>
</tfoot>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
<h3 class="wp-block-heading">Growth Stocks Surge To Record Highs Against Value</h3>
The Vanguard Growth ETF&#8217;s relative performance against its counterpart, the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), set new record highs in June, surpassing the previous peaks achieved in November 2021, as illustrated in the chart below, <a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1">sourced from Benzinga Pro.</a>
The primary drivers of the growth style&#8217;s outperformance in June were tech giants Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which saw robust rallies of 15% and 8.8%, respectively. 
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="460" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png" alt="" class="wp-image-405212" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-300x135.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-768x345.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1536x690.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
<ul>
<li> <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39440559/growth-stocks-leave-value-stocks-in-the-dust-4-reasons-for-biggest-monthly-lead-in-">Growth Stocks Leave Value Stocks In The Dust: 4 Reasons For Biggest Monthly Lead In Over A Year</a></li>
</ul>
Image generated using artificial intelligence via Midjourney.

Equities

Large Cap

Sector ETFs

Broad U.S. Equity ETFs

New ETFs

Markets

ETFs

AAPL

IUSG

SPYG

VONG

Tech, AI Drive $12.2B Inflows Into Growth ETFs, Marking Record Outperformance Over Value

The recent surge in NVIDIA Corp&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock price has led some analysts to caution investors about the company&#8217;s future growth prospects. This has prompted them to suggest alternative investments for a more balanced portfolio.
What Happened: The AI-driven boom of Nvidia has been reflected in its recent earnings, which surpassed expectations. This led to the company&#8217;s shares crossing the $1,000 mark for the first time, <a href="https://www.cnbc.com/2024/05/27/overinvested-in-nvidia-here-are-some-alternative-growth-stocks.html">reported</a> CNBC on Sunday.
Despite this, some analysts are concerned about a potential slowdown in growth, particularly in the latter part of the year. Lucas Keh, an analyst at Third Bridge, highlighted the impending shift of AI workloads in the cloud from training to inference, which could challenge Nvidia&#8217;s dominant market position.
"When the majority of AI workloads in the cloud move over from training to inference, Nvidia's dominant market share position will be tested. Most use cases in inference do not require the depth/amount of computing provided by Nvidia's top GPUs," he said.
Nancy Tengler, Chief Investment Officer at Laffer Tengler Investments, also expressed her surprise at the stock&#8217;s performance following the earnings report, suggesting that the market may have already priced in the positive results.
See Also: <a href="https://www.benzinga.com/markets/equities/24/05/39021107/donald-trump-floats-idea-of-bringing-back-adviser-peter-navarro-for-potential-second-term-despit?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Donald Trump Floats Idea Of Bringing Back Adviser Peter Navarro For Potential Second Term Despite Prison Sentence: &#8216;I Would Absolutely Have Peter Back&#8217;</a>
These concerns have led some analysts to suggest diversifying portfolios by considering alternative investments with low correlation to Nvidia. Four exchange-traded funds were identified using FactSet, which have shown a negative or low correlation to Nvidia in the past month. 
These ETFs are Vanguard S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOOG#NYSE">VOOG</a>), Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>), Vanguard Russell 1000 Growth ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VONG#NASDAQ">VONG</a>), and Fidelity Covington Trust Fidelity Enhanced Large Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FELG#NYSE">FELG</a>).
Why It Matters: Nvidia&#8217;s recent performance has been nothing short of remarkable. The company&#8217;s <a href="https://www.benzinga.com/news/earnings/24/05/38982843/nvidia-at-the-center-of-global-sovereign-ai-wave-heres-what-it-means">first-quarter earnings report</a> indicated its pivotal role in the global AI industry, with its technology being at the forefront of the &#8220;Sovereign AI&#8221; wave.
Moreover, the company&#8217;s <a href="https://www.benzinga.com/top-stories/24/05/39011237/exclusive-nvidia-dow-jones-inclusion-a-matter-of-when-will-it-replace-intel">potential inclusion in the Dow Jones Index</a> has been a hot topic, with experts suggesting that it&#8217;s only a matter of time before Nvidia replaces Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>).
Despite these positive indicators, the concerns raised by analysts highlight the need for a diversified investment approach. This is particularly important given the <a href="https://www.benzinga.com/markets/equities/24/05/39002763/wow-elon-musk-reacts-as-nvidias-eye-popping-market-cap-leaves-entire-german-stock-market-gdps-of">staggering market cap of Nvidia</a>, which has even caught the attention of tech mogul Elon Musk. In light of this, the suggestion of alternative growth stocks could provide investors with a more balanced and secure investment strategy.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39014019/nvidia-tech-stocks-propel-nasdaq-100-to-record-high-solar-sector-shines-meme-stock-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nvidia, Tech Stocks Propel Nasdaq 100 To Record High; Solar Sector Shines, Meme Stock Bubble Bursts</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Global

FELG

INTC

VOOG

Nvidia's Soaring Stock Price Prompts Analysts To Suggest A Diversified Portfolio Approach: Tech Giant's 'Dominant Market Share Position Will Be Tested'

In late September, the communication services sector <a href="http://www.benzinga.com/analyst-ratings/analyst-color/18/09/12339312/the-communication-services-sector-is-almost-here">officially became the 11th sector in the S&amp;P 500</a>. The move saw an increased weight in the S&amp;P 500 for the group previously known as telecom, as well as some departures from the consumer discretionary and technology sectors to communication services.
Those moves affect more than just sector exchange traded funds. Some growth and value ETFs are affected by moves used to create the communication services sector.
<h3>What Happened</h3>
Alphabet Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), Facebook Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>) and Netflix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>) are among the stocks that left technology and consumer discretionary for communication services, explaining much of the new found communication services heft <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12436587/a-schwab-growth-etf-for-october">in some growth ETFs</a>, including the Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>).
SCHG &ldquo;has 24% of assets in Information Technology, 16% in Consumer Discretionary and 12% in Communications Services; an additional 16% in health care is not impacted by the GICS realignment,&rdquo; said <a href="https://newpublic.cfraresearch.com/">CFRA Research</a> Director of ETF &amp; Mutual Fund Research Todd Rosenbluth in a recent note.
SCHG holds 417 stocks and features Alphabet and Google among its top 10 holdings. The rival SPDR Portfolio S&amp;P 500 Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spyg#NYSE">SPYG</a>) allocates 12.16 percent of its weight to communication services, that ETF&#39;s fourth-largest sector weight.
<h3>Why It&#39;s Important</h3>
Some value ETFs also have new weights to communication services, but to different names from that sector than the likes of Alphabet and Netflix. The iShares S&amp;P 500 Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ive#NYSE">IVE</a>) has a new communication services weight.
IVE &ldquo;held more in Communications Services (7%) of assets than in Consumer Discretionary (6%),&rdquo; said Rosenbluth. He notes IVE&#39;s communication services exposure is primarily comprised of AT&amp;T Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>), Verizon Communications Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>), Walt Disney Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dis#NYSE">DIS</a>) and Comcast Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cmcsa#NASDAQ">CMCSA</a>).
<h3>What&#39;s Next</h3>
The Vanguard Value ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vtv#NYSE">VTV</a>), a direct competitor to IVE, has a lower communication services weight than its iShares rival but a larger technology allocation.
&ldquo;While the sector weightings of these style-oriented ETFs will shift as the growth/momentum or value criteria is revisited per index rules, there are no sector constraints in building these portfolios. As such, we think investors need to look inside and understand how much exposure they have to the three impacted sectors,&rdquo; said Rosenbluth.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12447461/large-cap-small-cap-divergence-was-wide-in-september">An Alarming Market Divergence</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12447486/it-might-finally-be-time-for-emerging-markets-etfs">Are Emerging Markets Ready For Action?</a>

Long Ideas

Trading Ideas

CMCSA

GOOG

NFLX

How Growth And Value ETFs Look After The Debut Of Communication Services

The arrival of October typically&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12430080/best-sector-etfs-for-october-3-stocks-really-matter">brings good tidings</a> for domestic equities, meaning that kicking off the fourth quarter by considering some of the exchange traded funds that are already performing well this year may be a sound strategy.
With growth stocks soaring again in 2018, the Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schg#NYSE">SCHG</a>) is one broad market domestic equity fund to consider this month. SCHG is <a href="https://newpublic.cfraresearch.com/">CFRA Research&#39;s</a> focus ETF for the month of October.
<h3>What Happened</h3>
The $6.9-billion SCHG, which targets the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, entered October with a year-to-date gain of about 16 percent while flirting with record highs. SCHG hit a 52-week high on Monday. While Q4 is historically kind to stocks, some sectors are better bets than others.
&ldquo;In the last quarter of the year, The S&amp;P 500 averages a 5-percent price return,&rdquo; Todd Rosenbluth, CFRA&#39;s director of ETF and mutual fund research, said in a Monday note.
&ldquo;However, according to CFRA Chief Investment Strategist Sam Stovall, there has been performance disparity within the sectors of the broader market in the fourth quarter. Information technology (up 6.5 percent), consumer discretionary (6.2 percent) and industrials (5.9 percent) were the best performing of the seven sectors to top 5 percent&nbsp;on average.&rdquo;
<h3>Why It&#39;s Important</h3>
SCHG, which holds over 400 stocks, is typical of many growth strategies with its large weights to technology and consumer discretionary stocks. Those sectors combine for over half the ETF&#39;s weight. Familiar growth stocks&nbsp;like&nbsp;Apple Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) and Amazon.com Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>)&nbsp;are among SCHG&#39;s top holdings.
&ldquo;In mid-September, CFRA Equity Analyst Angelo Zino reiterated a Buy recommendation on AAPL following the company&rsquo;s product release announcement, including new iPhones and Apple Watch,&rdquo; said Rosenbluth. &ldquo;Zino explained price points for all devices are higher than CFRA expected and could provide upside to revenues and earnings per share. The stock remains undervalued based on Zino&rsquo;s P/E analysis.&rdquo;
CFRA equity analyst Tuna Amobi has a Buy rating on Amazon.
&ldquo;Amobi expects AMZN to exceed the midpoint of management&#39;s guidance for third quarter 2018 net sales of 23-31 percent and operating income of $1.4 billion to $2.4 billion, amid continued international investments,&rdquo; Rosenbluth said.&nbsp;
<h3>What&#39;s Next</h3>
SCHG has other favorable characteristics.
&ldquo;The ETF has been trading with bullish technical trends, above its 200-day moving average. Meanwhile, more than 300,000 shares change hands on daily basis with a tight penny bid/ask spread. The net expense ratio of 0.04 percent&nbsp;is among the cheapest funds regardless of investment style,&rdquo; according to CFRA.&nbsp;
CFRA has an Overweight rating on SCHG, the highest rating the research firm gives to ETFs.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/10/12430080/best-sector-etfs-for-october-3-stocks-really-matter#/null">Best Sector ETFs For October</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/10/12430079/investigate-this-international-etf">An Intelligent International ETF</a>

AMZN

A Schwab Growth ETF For October

A common criticism of sell-side equity analysts is that some on Wall Street wax bullish when stocks in their coverage universe are trading near new highs and turn bearish when those stocks make new lows. Said another way, some analysts&#39; forecasts are not always predictive or profitable for investors.
Of course, there are exceptions as some analysts really do &ldquo;get it.&rdquo; That sentiment extends to ratings of mutual funds and exchange traded funds. Sure, there are some highly rated funds that are not deserving of those ranking and there are other funds with lofty ratings that deliver for investors.
<h3>Paying Attention Pays Off</h3>
Investors that paid close attention to <a href="https://www.cfraresearch.com/">CFRA Research&#39;s ETF ratings</a> last year could have done well by focusing on the firm&#39;s Overweight ETFs while missing some potential disappointments by ignoring the lowest rated ETF&#39;s in CFRA&#39;s coverage universe.
Related Link: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/01/8920554/these-growth-etfs-are-popular-with-investors">These Growth ETFs Are Popular With Investors</a>
&ldquo;Whether it was the addition of $284 billion of new money for ETFs; various surveys of self-directed investors, advisors and institutional investors indicating they have increasingly used and plan to consider ETFs; and the ongoing expansion of new products from established and new entrants, it is easy to conclude last year was an excellent year for the ETF industry. Add to that list, CFRA&rsquo;s top ranked equity ETFs outperformed the S&amp;P 500 benchmark in 2016 by 399 basis points, while bottom ranked ETFs lagged by 559 basis points,&rdquo; said CFRA in a note out Monday.
<h3>SCHG In Focus</h3>
The Schwab U S Large Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>) is an example of one of CFRA&#39;s Overweight ETF&#39;s that is soaring. SCHG,<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/01/8920554/these-growth-etfs-are-popular-with-investors"> which saw 2016 inflows of $484 million</a>, is higher by nearly 6 percent year-to-date and hit a new high Monday.
SCHG is one of the cheapest growth ETFs on the market with an annual fee of just 0.04 percent, or $4 on a $10,000 investment. The Schwab growth ETF returned 6.8 percent last year.
The iShares Core S&amp;P Total U.S. Stock Market ETF (NYSE: <a class="ticker" href="/stock/itot#NYSE">ITOT</a>) is another example of a low fee ETF that garners an Overweight rating from CFRA. That ETF is higher by almost four percent to start 2017. ITOT rose 12.6 percent last year, nudging the 12 percent returned by the S&amp;P 500.
ITOT is one of the least expensive equity ETFs on the market today with an annual fee of just 0.03 percent. The ETF holds nearly 3,700 stocks.
&ldquo;In 2016, the <a href="https://www.benzinga.com/topic/etf">Overweight ranked ETFs</a> had 15.95 percent total return, exceeding the 11.96 percent for the S&amp;P 500 index. Meanwhile, the Underweight ranked ETFs gained only 6.37 percent. On a three-year and five-year total return basis, Overweight ranked ETFs outperformed the benchmark by 217 and 289 basis points, respectively, while Underweight ranked ETFs lagged by 1,109 and 996 basis points,&rdquo; added CFRA.

Analyst Color

Analyst Ratings

ITOT

Ratings Matter For Some ETFs

Last year, the value factor snapped its skid against its growth counterpart in significant fashion, but some growth exchange-traded funds were still able to accumulate new assets.
&ldquo;Large-cap growth mutual funds had $56 billion of net outflows in 2016 with four portfolios shedding $3 billion more in assets according to Thomson Reuters Lipper. Meanwhile, even as adoption of lower-cost ETFs has increased, large-cap growth ETFs gathered just $1.3 billion in new money, according to Factset,&rdquo; said <a href="https://www.cfraresearch.com/">CFRA Research</a> in a note out Wednesday.
While many growth ETFs languished in their asset-gathering efforts investors sent billions of new dollars into value funds, some growth ETFs remain popular with investors. That includes a pair of low-cost options.
<h3>Popularity, At Not A Huge Cost</h3>
The Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>), which tracks the CRSP US Large Cap Growth Index, saw 2016 inflows of $1.4 billion, according to CFRA. VUG gained just 6.3 percent last year, barely more than half the returns offered by the S&amp;P 500. VUG also significantly trailed its value counterpart, the Vanguard Value ETF (NYSE: <a class="ticker" href="/stock/vtv#NYSE">VTV</a>), which surged more <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/01/8861480/a-value-etf-looks-for-big-things-in-2017">than 17 percent last year</a>.
VUG is typical of many growth ETFs, as it sports substantial weights to the technology and consumer discretionary sectors. Those sectors combine for over 45 percent of VUG&#39;s weight. Top 10 holdings in the Vanguard ETF include venerable growth names such as Amazon.com, Inc. (NASDAQ: <a class="ticker" href="/stock/amzn#NASDAQ">AMZN</a>) and Google parent Alphabet Inc. (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) (NASDAQ: <a class="ticker" href="/stock/googl#NASDAQ">GOOGL</a>).
VUG holds 323 stocks, and its 0.08 percent annual fee makes it less expensive than 93 percent of competing funds.
<h3>Another Option</h3>
Investors allocated $484 million to the Schwab U S Large Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>) last year. With 429 holdings, SCHG has deeper bench than its Vanguard rival. SCHG tracks the Dow Jones U.S. Large Cap Growth Total Stock Market Index.
SCHG allocates over 47 percent of its combined weight to technology and consumer discretionary stocks. Amazon and Alphabet are also found among this ETF&#39;s top 10 holdings, and SCHG features an almost 17 percent weight to healthcare stocks.
SCHG is one of the cheapest growth ETFs on the market with an annual fee of just 0.04 percent, or $4 on a $10,000 investment. The Schwab growth ETF returned 6.8 percent last year.
CFRA has Overweight ratings on both SCHG and VUG. That is the firm&#39;s highest fund rating.

GOOGL

These Growth ETFs Are Popular With Investors

Investors searching for core growth exchange-traded funds have a plethora of choices at their disposal with small variations in fees, index construction and liquidity.

	Often times a large menu of options can lead to indecision when selecting a stalwart mix of stocks to participate in the market. Nevertheless, several ETFs quickly stand out from the group for their low cost, diversification and flexibility.

	The Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>) is the cheapest overall option with an expense ratio of 0.07 percent. This means that SCHG will only charge $7 for every $10,000 invested each year.

	This ETF contains nearly 400 large-cap stocks that have been identified as exhibiting high growth potential. Top holdings include well-known names such as Apple Inc. and Amazon.com Inc. In addition, SCHG has over $2.1 billion in total assets.
Related Link: <a href="http://www.benzinga.com/news/15/06/5619637/greeces-final-proposal-draws-criticism-from-syriza">Greece's Final Proposal Draws Criticism From Syriza</a>
<div id="preview-wrapper">
<div id="file-preview">
		<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload%40imceInline.load#" title=""><img alt="schg.png" height="284" src="https://www.benzinga.com/files/u79448/schg.png" width="460" /></a></div>
</div>

	Over the last year, SCHG has gained 14 percent compared to 9.81 percent in the broad benchmark SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>). The outsized exposure to technology, consumer discretionary, and health care names has been a tailwind for performance over this time frame.

	Another alternative for growth investors is the iShares Core U.S. Growth ETF (NYSE: IUSG). This ETF takes more of a total market approach by incorporating large-, mid- and small-cap holdings in its highly diversified portfolio.

	IUSG has nearly $700 million in assets dedicated to 1,870 stocks in a market cap weighted structure. In addition, this fund has a minuscule expense ratio of just 0.09 percent, which makes it suitable for even the most cost conscious investor.

	Lastly, the Vanguard Growth ETF (NYSE: <a class="ticker" href="/stock/vug#NYSE">VUG</a>) provides exposure to a deep pool of 360 large company stocks that is based on the CRSP US Large Cap Growth Index. Vanguard has always been known for its cost effective funds and VUG doesn&rsquo;t disappoint with a similar expense ratio of 0.09 percent.

	This ETF has accumulated over $19.1 billion in total assets and has a slightly different index construction methodology than typical Dow Jones or Russell Investment brands. The top 10 holdings of this market cap weighted ETF represent 25 percent of the total asset allocation and include outsized positions in Apple and Google Inc.

	Disclosure: At the time this article was published, clients of FMD Capital Management owned shares of VUG.

3 Core ETFs For Growth Investors

Discount broker Charles Schwab (NYSE: <a class="ticker" href="/stock/schw#NYSE">SCHW</a>), sponsor to some of the least expensive ETFs on the market, is making some of those funds even cheaper. In a filing with the <a href="http://www.sec.gov/Archives/edgar/data/1454889/000119312512398527/d403516d497.htm">Securities and Exchange Commission</a>, Schwab outlined fee cuts a wide array of its ETFs.

Among the Schwab funds with lower expense ratios will be two of the firm's most popular products. The Schwab U.S. Broad Market ETF (NYSE: <a class="ticker" href="/stock/schb#NYSE">SCHB</a>) will see its fee reduced to 0.04 percent per year from 0.06 percent. The annual expense ratio on the Schwab U.S. Large-Cap ETF (NYSE: <a class="ticker" href="/stock/schx#NYSE">SCHX</a>) goes to 0.04 percent from 0.08 percent. SCHB has $1.1 billion in assets under management while <a href="https://www.schwabetfs.com/summary.asp?symbol=SCHX">SCHX had $887.5 million in AUM at the end of August</a>.

The Schwab U.S. Large-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>), Schwab U.S. Large-Cap Value ETF (NYSE: <a class="ticker" href="/stock/schv#NYSE">SCHV</a>). Schwab U.S. REIT ETF (NYSE: <a class="ticker" href="/stock/schh#NYSE">SCHH</a>) and the Schwab U.S. Mid-Cap ETF (NYSE: <a class="ticker" href="/stock/schm#NYSE">SCHM</a>) will see annual fees reduced to 0.07 percent from 0.13 percent.

The Schwab U.S. Small-Cap ETF (NYSE: <a class="ticker" href="/stock/scha#NYSE">SCHA</a>) goes down three basis points to 0.1 percent from 0.13 percent. In the dividend space, Schwab slashed the expense ratio on the Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>) to 0.07 percent from 0.17 percent.

Schwab also reduced expenses on several of its international funds, including the Schwab International Equity ETF (NYSE: <a class="ticker" href="/stock/schf#NYSE">SCHF</a>), which is going to 0.09 percent from 0.13 percent. The Schwab International Small-Cap Equity ETF (NYSE: <a class="ticker" href="/stock/schc#NYSE">SCHC</a>) will now have an expense ratio of 0.2 percent down from 0.35 percent.

Interestingly, the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) has lost the title of cheapest emerging markets ETF. That honor now goes to the Schwab Emerging Markets Equity ETF (NYSE: <a class="ticker" href="/stock/sche#NYSE">SCHE</a>), which will now charge 0.15 percent compared with 0.25 percent in the past.

Fees on the Schwab U.S. TIPS ETF (NYSE: <a class="ticker" href="/stock/schp#NYSE">SCHP</a>) were cut in half to 0.07 percent from 0.14 percent. The Schwab Short-Term U.S. Treasury ETF (NYSE: <a class="ticker" href="/stock/scho#NYSE">SCHO</a>) goes to 0.08 percent from 0.12 percent while the Schwab Intermediate-Term U.S. Treasury ETF (NYSE: <a class="ticker" href="/stock/schr#NYSE">SCHR</a>) will now charge 0.1 percent compared with 0.12 percent in the past.

The Schwab U.S. Aggregate Bond ETF (NYSE: <a class="ticker" href="/stock/schz#NYSE">SCHZ</a>) also cut its fees in half to 0.05 percent from 0.1 percent while the Schwab U.S. REIT ETF (NYSE: <a class="ticker" href="/stock/schh#NYSE">SCHH</a>) will now charge 0.07 percent, down from 0.13 percent. 

All that on top of the fact that Schwab offers all of its ETFs on a commission-free basis to its clients.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Emerging Market ETFs

Pre-Market Outlook

Intraday Update

SCHA

SCHB

SCHC

SCHE

SCHF

SCHH

SCHM

SCHO

SCHP

SCHR

SCHV

SCHW

SCHX

SCHZ

Schwab ETF Fees Hit Rock Bottom

With Europe still in flux to put things mildly and rampant speculation that emerging markets growth will slow more than most investors would like to see, perhaps the U.S. equity market is starting to look good by comparison. If that's the case, S&amp;P Capital IQ has an ETF recommendation worth noting.

The research issued an “overweight” rating on the Schwab Large-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/schg#NYSE">SCHG</a>), saying “We view SCHG as predominantly composed of large-cap U.S. stocks with strong growth characteristics, and we view its underlying holdings as relatively attractive.”

SCHG made its debut in December 2009 and now is home to 422 stocks and a paltry expense ratio of 0.13%. The ETF has $288.5 million in assets under management, according to Schwab's Web site. That expense ratio puts SCHG in the 95th percentile of the U.S. ETF universe, according to S&amp;P.

“With growing concerns over economic malaise in the Eurozone and questions over the extent to which economic growth may be decelerating in China, focusing on the U.S. market may be seen as somewhat of a relatively safer haven these days. In addition, questions over the solvency of financial institutions, especially in Europe, also suggest to us a preference for large-cap names over small-cap ones,” S&amp;P analyst Stewart Glickman said in the note.

Four sectors – technology, consumer discretionary, industrials and health care get double-digit weights in SCHG with enegy not far behind at 9.8%. That said, tech names dominate this fund's weight with an allocation of 30.1%. Apple (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>) Berkshire Hathaway (NYSE: BRK.B), Cisco (Nasdaq: <a class="ticker" href="/stock/csco#Nasdaq">CSCO</a>), Google (Nasdaq: <a class="ticker" href="/stock/goog#Nasdaq">GOOG</a>) and Microsoft (Nasdaq: <a class="ticker" href="/stock/msft#Nasdaq">MSFT</a>) are the ETF's top-five holdings.

While SCHG has jumped from $25.50 to almost $30 in just the past month, if the ETF can crack resistance at $30 a move to $33 could be in the offing.

Comments

Schwab U.S. Large-Cap Growth ETF

Notizie

Ultime notizie per Schwab U.S. Large-Cap Growth ETF (ARCA:SCHG)

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO