SCHA vs SPY
Schwab US Small-Cap ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHA has a lower expense ratio. SCHA delivered stronger 1-year returns. SCHA offers more diversification with 1550 holdings.
Side-by-Side Comparison
| Metric | SCHA | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $22.4B | $789.1B | |
| Dividend Yield | 0.99% | 1.01% | |
| Holdings | 1,734 | 505 | |
| YTD Return | +22.39% | +13.68% | |
| 1Y Return | +34.49% | +21.53% | |
| 3Y Return (annualized) | +18.01% | +21.44% | |
| 5Y Return (annualized) | +7.99% | +13.18% | |
| Volatility (annualized) | 19.3% | 15.3% | |
| Max Drawdown | -43.0% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 3, 2009 | Jan 22, 1993 |
SCHA vs SPY Performance
Schwab US Small-Cap ETF (SCHA) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SCHA returned +34.49% while SPY returned +21.53%. Year to date, SCHA is up 22.39% versus a gain of 13.68% for SPY.
Over three years, SCHA compounded at +18.01% per year against +21.44% for SPY; over five years the annualized figures are +7.99% and +13.18% respectively. Across the full 17-year window we track, SCHA has the edge at +11.44% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHA has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -43.0% for SCHA and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHA charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHA currently yields 0.99% against 1.01% for SPY.
Holdings Overlap
SCHA and SPY share 4 holdings out of 2049 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHA or SPY?
SCHA has an expense ratio of 0.03% while SPY charges 0.09%. SCHA is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHA or SPY?
Over the past year SCHA returned +34.49% vs +21.53% for SPY, so SCHA leads on 1-year performance. Over the longest common window we track (17 years), SCHA annualized +11.44% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHA or SPY?
SCHA has been the more volatile fund at 19.3% annualized versus 15.3% for SPY. Worst drawdown: SCHA -43.0% vs SPY -56.5%.
Should I hold both SCHA and SPY?
SCHA and SPY have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHA and SPY?
SCHA and SPY share 4 common holdings with a 0.5% weight overlap. Combined, they hold 2049 unique securities.
Which pays a higher dividend, SCHA or SPY?
SCHA yields 0.99% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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