SCHG: Still Overvalued Despite Recent Drops

  • Schwab U.S. Large-Cap Growth ETF is currently overvalued, with a high P/E ratio compared to historical data, indicating potential further declines. The ETF's heavy weighting towards large-cap tech names exposes it to significant risks from trade wars, AI investment reductions, and Federal Reserve uncertainties. Given the macroeconomic risks and high valuation, it is prudent to hold off on investing in SCHG until positive shifts in these risk factors occur.