SCHD vs SPHY
Schwab US Dividend Equity ETF vs State Street SPDR Portfolio High Yield Bond ETF
Which is better, SCHD or SPHY?
Large Cap Value against High Yield Bond.
SPHY has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SPHY |
|---|---|---|
| Expense Ratio | 0.06% | 0.05%Best |
| AUM | $112.1B | $11.9B |
| Dividend Yield | 3.00% | 7.19% |
| Holdings | 103 | 1,925 |
| YTD Return | +25.07%Best | +1.77% |
| 1Y Return | +27.61%Best | +3.45% |
| 3Y Return (annualized) | +15.74%Best | +8.09% |
| 5Y Return (annualized) | +9.89%Best | +3.89% |
| Volatility (annualized) | 16.4% | 8.5%Best |
| Max Drawdown | -33.4% | -22.4%Best |
| $10,000 over 5 years | $16,025Best | $12,102 |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | High Yield Bond |
| Inception | Oct 20, 2011 | Jun 18, 2012 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 23, 2019 to Sep 11, 2026 (7 years).
SCHD vs SPHY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7 years both funds cover.
SCHD vs SPHY Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR Portfolio High Yield Bond ETF (SPHY) is an ETF from State Street Investment Management. Over the past year SCHD returned +27.61% while SPHY returned +3.45%. Year to date, SCHD is up 25.07% versus a gain of 1.77% for SPHY.
Over three years, SCHD compounded at +15.74% per year against +8.09% for SPHY; over five years the annualized figures are +9.89% and +3.89% respectively. Across the full 7-year window we track, SCHD has the edge at +12.39% annualized vs +3.61%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 8.5% for SPHY. 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 -33.4% for SCHD and -22.4% for SPHY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SPHY charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 7.19% for SPHY.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 5 in SPHY, totalling 100.0% and 1.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 5 in SPHY, against full books of 103 and 1,925.
You are not choosing between two funds in isolation.
Whichever of SCHD and SPHY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SPHY?
SCHD has an expense ratio of 0.06% while SPHY charges 0.05%. SPHY is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, SCHD or SPHY?
Over the past year SCHD returned +27.61% vs +3.45% for SPHY, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +12.39% vs +3.61% for SPHY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SPHY?
SCHD has been the more volatile fund at 16.4% annualized versus 8.5% for SPHY. Worst drawdown: SCHD -33.4% vs SPHY -22.4%.
Should I hold both SCHD and SPHY?
SCHD and SPHY have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or SPHY?
SCHD yields 3.00% while SPHY yields 7.19%, so SPHY currently pays the higher dividend yield.
Is SPHY better than SCHD?
SPHY has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.