Overview
- Schwab’s SCHA has outperformed Vanguard’s broad small‑cap fund VB over the trailing year largely because a roughly 4.6% Sandisk stake boosted returns in the Dow Jones‑linked index fund.
- Vanguard’s mega‑cap growth ETF MGK is highly concentrated in technology with about 72% tech weight and large stakes in Nvidia, Apple and Microsoft, while Vanguard’s small‑cap growth ETF VBK spreads risk across roughly 543 holdings.
- Expense ratios are uniformly low and similar across the funds compared, with MGK and VBK at about 0.05% and both VB and SCHA at about 0.03%, so fees are not the decisive factor in recent gaps.
- Index choice and holdings count drive different exposures: VB’s CRSP benchmark holds about 1,300 names and offers a higher trailing 12‑month yield near 1.2%, while SCHA’s Dow Jones benchmark holds about 1,700 names and is more tech tilted with a near 1.0% yield.
- The practical trade‑off for investors is clear: concentrated, tech‑heavy ETFs can produce stronger short‑term gains but raise single‑stock and sector risk, while broader small‑cap funds offer more diversification and steadier income characteristics.