SCHB vs SPY
Schwab US Broad Market ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHB has a lower expense ratio. SPY delivered stronger 1-year returns. SCHB offers more diversification with 2,411 holdings.
Side-by-Side Comparison
| Metric | SCHB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $45.2B | $821.1B | |
| Dividend Yield | 1.04% | 1.01% | |
| Holdings | 2,411 | 505 | |
| YTD Return | +13.49% | +13.21% | |
| 1Y Return | +19.73% | +19.87% | |
| 3Y Return (annualized) | +20.95% | +21.16% | |
| 5Y Return (annualized) | +11.80% | +12.74% | |
| Volatility (annualized) | 14.9% | 15.3% | |
| Max Drawdown | -35.3% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 3, 2009 | Jan 22, 1993 |
SCHB vs SPY Performance
Schwab US Broad Market ETF (SCHB) 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 SCHB returned +19.73% while SPY returned +19.87%. Year to date, SCHB is up 13.49% versus a gain of 13.21% for SPY.
Over three years, SCHB compounded at +20.95% per year against +21.16% for SPY; over five years the annualized figures are +11.80% and +12.74% respectively. Across the full 17-year window we track, SCHB has the edge at +13.00% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.9% for SCHB. 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 -35.3% for SCHB 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 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHB 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, SCHB currently yields 1.04% against 1.01% for SPY.
Holdings Overlap
SCHB and SPY share 495 holdings out of 2355 unique holdings combined, representing a 88.5% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SCHB or SPY?
SCHB has an expense ratio of 0.03% while SPY charges 0.09%. SCHB is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHB or SPY?
Over the past year SCHB returned +19.73% vs +19.87% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SCHB annualized +13.00% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.9% for SCHB. Worst drawdown: SCHB -35.3% vs SPY -56.5%.
Should I hold both SCHB and SPY?
SCHB and SPY have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SCHB and SPY?
SCHB and SPY share 495 common holdings with a 88.5% weight overlap. Combined, they hold 2355 unique securities.
Which pays a higher dividend, SCHB or SPY?
SCHB yields 1.04% while SPY yields 1.01%, so SCHB currently pays the higher dividend yield.
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