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Schwab US Large-Cap Growth ETF holds strong quality but faces short-term risks from energy prices and earnings slowdowns.

Analyst Insights
27 Mar 2026
Seeking Alpha
View Source
Neutral
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The Schwab US Large-Cap Growth ETF (SCHG), with $49 billion in assets and a low 0.04% expense ratio, offers exposure to high-quality large-cap growth stocks. Despite strong long-term performance, SCHG faces short-term challenges including rising energy costs linked to the Iran conflict and a notable slowdown in earnings surprises among its top holdings in late 2025. While Wall Street analysts remain optimistic with a projected 23.36% EPS growth, recent trends suggest caution. The ETF currently holds a "hold" rating due to its quality features, but continued weak earnings surprises could prompt a downgrade to "sell."

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