Both are very solid funds. I'd have no issues with investors owning either. The runup in big tech has helped bothed indexes, but SCHG even more as it takes a more concentrated approach and also primarily focuses on growth elements of a company, which have done very well in the last couple of bull markets we've been going through.
As an investor myself, I would personally lean towards SCHG just because of the growth element of the fund. It does take out a lot of the slower growing companies in the S&P 500 and primarily focuses on the higher quality ones within the index. However, I would expect SCHG to be a bit more volatile as it does have larger concentration in the big tech options in the United States. If they stumble in terms of earnings, you will be more exposed to this. However, if they continue to put up strong performances like they are, there is a good possibility SCHG could continue to outperform the S&P 500.
If I had to choose one today, I'd choose SCHG. But if you want broader exposure and potentially lower volatility, VOO is never a bad option.
Posted by Anonymous