GET DAILY SIGNALSSCHG vs SPUS: Weighing Low-Cost Large-Cap Growth Against Sharia-Compliant Exposure
Key Takeaways
- SCHG tracks the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, holding roughly 197 large-cap growth stocks at a 0.04% expense ratio.
- SPUS tracks the S&P 500 Sharia Industry Exclusions Index, holding about 220 Sharia-compliant large-cap names at a 0.45% expense ratio.
- Both funds are heavily weighted to information technology, but SPUS applies religious and ethical screens that remove conventional banks, alcohol, tobacco, gambling, and weapons-related businesses.
- SCHG offers broader diversification, lower cost, and slightly less concentration, while SPUS delivers even sharper exposure to mega-cap technology leaders such as NVDA and AAPL.
- For cost-conscious, growth-oriented investors, the structural advantages tilt toward SCHG.
- Tickeron AI Verdict: SCHG — favored for its lower expense ratio, broader diversification, and more balanced growth exposure.
Introduction
When I first examined SCHG and SPUS, they seemed aimed at quite different groups—one a standard large-cap growth vehicle, the other a faith-based, Sharia-compliant approach. In reality their holdings overlap a great deal because both are driven by the same mega-cap technology names that have led U.S. markets lately. This comparison matters now as investors consider pure growth exposure versus values-aligned strategies and need to see how screening rules, concentration levels, and fees alter otherwise similar funds. While they are not direct rivals, both pursue long-term capital appreciation through large-cap U.S. equities, so their differences offer a practical way to evaluate relative positioning. I also checked this using Tickeron’s AI Screener to see how the two line up against peers.
Schwab U.S. Large-Cap Growth ETF (SCHG) Overview
The Schwab U.S. Large-Cap Growth ETF (SCHG) follows the Dow Jones U.S. Large-Cap Growth Total Stock Market Index in a passive manner. It selects large-cap growth names using fundamental criteria and holds about 197 stocks, with the top ten making up just over half the assets. Leading positions include NVDA, AAPL, MSFT, AMZN, GOOGL, AVGO, META, and LLY. Information technology accounts for roughly 46 percent, followed by communication services and consumer discretionary. Its 0.04 percent expense ratio ranks among the lowest in the category.
SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) Overview
The SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) tracks the S&P 500 Sharia Industry Exclusions Index. It starts with screened S&P 500 names and removes companies tied to aerospace and defense, financial exchanges, data processing, conventional banking, alcohol, tobacco, gambling, weapons, and pork-related products. The fund holds around 220 stocks, with the top ten representing about 57 percent of assets. Key holdings include NVDA, AAPL, MSFT, GOOGL, AVGO, MU, and TSLA. Information technology makes up nearly 60 percent, with smaller allocations to health care and energy. The 0.45 percent expense ratio reflects the specialized screening involved.
Industry and Thematic Backdrop
Both ETFs sit within the same broad theme of artificial intelligence, cloud computing, and semiconductor demand that has shaped recent market leadership. Market-cap weighting means a small group of mega-cap technology companies drives most returns. This setup has rewarded holders during strong AI-related spending and earnings, yet it also increases sensitivity to interest-rate shifts because long-duration growth stocks react more to higher discount rates. For SPUS the removal of conventional banks reduces financial-sector exposure, while the addition of certain energy names such as XOM brings in a commodity element not present in SCHG. Both remain closely linked to large-cap technology performance and the overall U.S. growth cycle.
Performance and Positioning Comparison
Over recent cycles both have delivered solid gains tied to their shared technology exposure. SCHG has followed the broader large-cap growth segment with somewhat lower volatility than more concentrated peers, while SPUS has gained from its heavier tilt toward semiconductor and AI leaders such as NVDA. That extra concentration has boosted upside in rallies but also increased drawdown risk in weaker periods. Recent sector rotation favoring technology and communication services has supported both, though SPUS’s higher weighting in those areas has added volatility. In positioning terms, SCHG provides a smoother, lower-cost, and more diversified path to the growth theme, whereas SPUS emphasizes values alignment and concentrated exposure at the expense of cost efficiency. From what I see, the cost and diversification edge favors SCHG for most long-term holders.
Tickeron AI Verdict
Based on structural factors, Tickeron’s AI would likely favor SCHG over SPUS at present. The 0.04 percent expense ratio creates a meaningful cost advantage that compounds over time, and the roughly 197 holdings deliver slightly better diversification than SPUS’s more concentrated book. Although SPUS offers sharper thematic intensity through its heavier technology weighting, that same concentration raises single-stock and sector risk. SCHG’s broader growth exposure, lower fees, and steadier trend profile point to a more favorable risk-adjusted outlook. This view rests on observable characteristics rather than forecasts of future returns.
Using AI Tools in ETF Research
I often turn to Tickeron’s AI Screener when comparing ETFs like these. It lets me quickly filter holdings by technical patterns, fundamentals, momentum, and volatility, which saves considerable time versus manual review and helps spot relative strength or trend consistency across the two funds and their underlying names.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
I’m a trader and independent researcher. My interest lies at the intersection of financial markets, algorithms, and capital management. I develop data-driven tools and strategies and study algorithmic approaches to market analysis. I help turn complex market data into clear insights and practical systems. I believe technology should support, not replace, investment thinking
SCHG's Indicator enters downward trend
The Aroon Indicator for SCHG entered a downward trend on November 03, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 172 similar instances where the Aroon Indicator formed such a pattern. In 152 of the 172 cases the stock moved lower. This puts the odds of a downward move at 88%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SCHG as a result. In 65 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 83%.
The Moving Average Convergence Divergence Histogram (MACD) for SCHG turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 38 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 79%.
SCHG moved below its 50-day moving average on October 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SCHG crossed bearishly below the 50-day moving average on October 26, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 79%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 79%.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SCHG's RSI Indicator exited the oversold zone, 22 of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 85%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +1.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHG advanced for three days, in 312 of 369 cases, the price rose further within the following month. The odds of a continued upward trend are 85%.
SCHG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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