SCHG outperforms VUG over 10 years due to index construction, making it a better choice for new large-cap growth investments.

The article compares two large-cap growth ETFs, SCHG and VUG, highlighting their similarities in holdings and investment approach. Despite these similarities, SCHG has outperformed VUG over a 10-year period, returning 412% compared to VUG's 372%. This difference is attributed to their distinct index construction methodologies, with SCHG's index holding more names and leaning slightly harder on the growth factor. For new investments in large-cap growth, SCHG is recommended. However, for existing VUG holders with significant embedded gains in taxable accounts, the tax implications of switching may outweigh the benefits.