Growth ETF SCHG Topped VOO Over Ten Years, but Recent Results Are Much Closer
Over ten years, SCHG returned 460.49% while VOO returned 326.29%, so $100,000 grew to $560,490 versus $426,290. Their five-year results were much closer, with SCHG ahead by only 3.39 percentage points. Switching from VOO to SCHG in a taxable account could trigger capital gains taxes that offset the performance difference.
The comparison covers a decade beginning October 21, 2016, with distributions reinvested. SCHG’s 460.49% total return versus VOO’s 326.29% produced ending balances of $560,490 and $426,290 on a $100,000 starting stake. Over five years, however, SCHG’s 86.44% barely exceeded VOO’s 83.05%, a 3.39-point margin.
Both are passive funds but track different indexes. VOO follows the broad S&P 500, while SCHG follows a large-cap growth index drawn from the 750 largest U.S. companies. That makes SCHG narrower. Recent performance also differs: VOO led SCHG over one year and year-to-date, while monthly returns were nearly identical.
The story may matter most to long-term savers, retirement investors, and taxable-account holders comparing broad and growth-focused ETFs. A switch could create capital-gains costs that reduce net returns, while SCHG’s narrower portfolio may bring sharper swings than VOO. Because many households rely on index funds for retirement, differences in taxes and concentration could affect wealth outcomes over time, though recent performance alone may not predict future results.