Three growth ETFs from Vanguard, Schwab, and State Street all chase the same megacap names yet deliver different outcomes depending on which index rulebook they follow, and picking the wrong one for your goals could quietly cost you more than…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Investors continue to turn to growth funds as a way to drive outsized returns. Three leaders in this category include the Vanguard Growth ETF (NYSEARCA:VUG), the SPDR Portfolio S&P 500 Growth ETF (NYSEARCA:SPYG), and the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG).
All three are passive large-cap growth funds from State Street, Schwab, and Vanguard, and all three lean hard on the same handful of megacaps. They follow different indexes with different rules, and those rules decide what you own. Choosing by fee alone or by last year’s return could both lead you wrong.
SPYG: Last Year’s Leader, Built Only From S&P 500 Members
SPYG tracks the S&P 500 Growth Index, which starts with S&P 500 companies only. S&P scores each member on growth and value characteristics, then puts it to the growth index, the value index, or splits its market value between both. Holdings are weighted by float-adjusted market cap.
That split rule produces surprises. Berkshire Hathaway holds about 3% of the fund and JPMorgan Chase about 2%, per its June 30 portfolio filing, names that few investors would traditionally call growth stocks.
NVIDIA sits on top at almost 14%, while Apple accounts for only about 6%.
At mid-year, the fund had about $53 billion in net assets. According to the State Street fact sheet, the current expense ratio sits at 0.04%. Over five years, SPYG gained about 98% on an adjusted basis. Over ten years, the gain was about 420%.
SCHG: The Widest Net and the Strongest Decade
SCHG follows the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, which draws from a broader universe than the S&P 500 Growth and typically holds more names. It is also the largest of the three, with roughly $61 billion in net assets as of May 31.
Its top end looks closer to VUG than to SPYG. NVIDIA was about 11% of assets, Apple 10%, Microsoft 7%, and Amazon 6%. Below that, it spreads into payment networks such as Visa and Mastercard, health care names like Eli Lilly, and power infrastructure companies including GE Vernova and Vertiv.
SCHG’s one-year return trailed both rivals. Over longer periods, it leads: about 455% over ten years, the best of the group, and about 96% over five years. SCHG also maintains an expense ratio of 0.04%.
VUG: A 0.03% Fee Paired With the Heaviest Megacap Tilt
VUG tracks the CRSP US Large Cap Growth Index. CRSP ranks large U.S. companies on a blend of historical and forward-looking growth measures, then weights the qualifiers by market cap. It maintains the lowest fee among the trio.
The trade-off is concentration. As of June 5, NVIDIA made up 13% of the fund, Apple 12%, Alphabet 10%, and Microsoft 9%. With four companies each carrying roughly a tenth of the portfolio, a rough quarter from any one of them moves your entire position.
VUG returned 14.32% over the one-year window, about 89% over five years and about 421% over ten.
Why Index Rules Split the Returns
All three funds automatically copy an index, so the performance gap traces back to what each rulebook put in the portfolio. Index construction alone drives the gap.
Apple is the clearest example. It accounts for about 12% in VUG and 10% in SCHG, against about 6% in SPYG. Whatever Apple did over the past year landed harder on VUG and SCHG shareholders.
SPYG filled that room with chipmakers and chip-equipment suppliers. Micron held about 4% at mid-year, and Applied Materials, Lam Research, and KLA each carried between 1% and 2%. It also held a larger NVIDIA holding than either peer in the latest filings. Over this particular one-year window, that semiconductor-heavy mix came out ahead.
One Strong Year Flips Over a Decade
| Fund | 1 Year (9/29/25 to 9/30/26) | 5 Years (10/1/21 to 9/30/26) | 10 Years (9/30/16 to 9/30/26) |
|---|---|---|---|
| SPYG | 20% | 98% | 420% |
| VUG | 14.32% | 89% | 421% |
| SCHG | 14.30% | 96% | 455% |
SPYG led over one year and five years. Over ten, it finished last, a hair behind VUG, while SCHG came out on top. The one-year ranking failed to hold, and that is the most useful takeaway for anyone shopping these funds.
Even the one-year number is thin. Start the period one day later, on September 30, 2025, and SPYG’s adjusted price gain reads about 18%. Trailing returns are snapshots of one specific window, and they change daily.
Where a Few Basis Points Turn Into Real Money
Against a one-year return gap measured in whole percentage points, a fee gap of a few hundredths of a percent looks irrelevant. Over one year, it is.
Fees behave differently over decades. They come out every year, in good markets and bad, and each dollar taken also stops compounding for every year that follows. Across a multi-decade retirement account, that drag stacks up quietly. Future returns are unknowable, while the fee is printed on the fact sheet the day you buy. It is the one variable you control.
Matching Each Fund to Your Goals
VUG suits the cost-focused, buy-and-hold investor who accepts that four megacaps drive much of the outcome. SCHG fits investors seeking the widest selection universe and the best ten-year record of the three. SPYG’s construction appeals to investors who like S&P 500 membership as a screen and want lower Apple exposure with heavier chip exposure, as long as they understand last year’s lead says nothing about next year.
Contact [email protected] for any questions or corrections.