SCHG ETF is a concentrated mega-cap tech bet, not broad diversification, despite 197 holdings.

The Schwab U.S. Large-Cap Growth ETF (SCHG) appears diversified with 197 stocks but is actually heavily concentrated, with its top 10 holdings—mainly mega-cap tech giants like NVIDIA, Apple, and Microsoft—making up 59% of the portfolio. This concentration means investors face significant single-stock and sector risks, especially as these top names are highly correlated through AI and tech exposure. While SCHG has delivered strong returns, its risk profile differs from a truly diversified fund. It suits investors seeking a deliberate growth tilt in mega-cap tech, ideally paired with a broader core fund for balance.