Schwab U.S. Large-Cap Growth ETF [SCHG] Stock Forecast

Amina, the most incredible woman I've ever met, just sold her real estate business for $20 million after taxes. She's 47 and looking to become a professional philanthropist. She wants to harness the power of dividend stocks to create a perpetual charitable portfolio to donate millions each year and eventually billions to save lives. Here's how I created a high-yield dividend growth portfolio for her, capable of 15% annual returns for this real-life black panther-like superhero.

Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Schwab U.S. Large-Cap Growth ETF (SCHG), a passively managed exchange traded fund launched on 12/11/2009.

Wall Street logged the third consecutive week of gains, with November becoming the strongest month of the year. With this surge, many ETFs have hit new 52-week high lately or are near their one-year peak.

Stock prices and returns are in part determined by net cash on the balance sheet and future expectations of free cash flow. Dividends are not a driver of valuation and actually decrease the value of a company because cash is paid out to investors. Over the past decade, dividend-paying stocks have underperformed compared to "growth" stocks with strong free cash flow generation and balance sheets.

Schwab U.S. Large-Cap Growth ETF has consistently outperformed the S&P 500 and broader indexes since its inception in 2009. Recent big-cap tech earnings have been solid, and the decline in core inflation after the drop in oil prices is important. The ETF has minimal exposure to sectors that tend to outperform during inflationary periods, but it should outperform if inflation rates continue to moderate.

Apple's weight in the ETF may be a hindrance to its performance. SCHG has an estimated EPS growth of 15% in the YE24-25 period. The valuation of the ETF is a headwind, with a high P/E ratio of 23x and a PEG ratio of 1.8.

Schwab U.S. Large-Cap Growth ETF is a low-price investment option for investors that seek exposure to large U.S. companies, especially in the tech sector. The ETF has achieved double-digit returns since its inception in 2009 and offers a concentrated portfolio of top technology companies. Investors can benefit from the growing AI theme through the ETF's holdings, such as Nvidia, Google, and Microsoft.

Launched on 12/11/2009, the Schwab U.S. Large-Cap Growth ETF (SCHG) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.

I'm considering a shift from growth to value stocks amid recent growth stock outperformance due to declining inflation and expected Fed rate actions. The Schwab U.S. Large-Cap Growth ETF stands out as a top growth investment option, offering diversification and cost efficiency, especially for those seeking technology exposure. Concerns of overvaluation and potential headwinds for growth stocks like rising inflation and interest rates prompt me to monitor SCHG and consider deploying cash strategically for a more balanced portfolio.

Investing in mutual funds and ETFs allows individuals to benefit from growth areas without the need to actively manage individual equities. The Schwab U.S. Large-Cap Growth ETF is a low-cost ETF that provides a diversified approach to investing in tech-heavy companies. SCHG has outperformed the market, with a proven track record of generating double-digit returns and may continue to outpace traditional index funds in a multi-year bull cycle.

Schwab U.S. Large-Cap Growth ETF is a US stock and trading under the symbol SCHG

Schwab U.S. Large-Cap Growth ETF stock price is $79.65 today.

Yes, Schwab U.S. Large-Cap Growth ETF is a publicly traded company.