SCHD vs SPHY
SCHD vs SPHY
Schwab US Dividend Equity ETF vs State Street SPDR Portfolio High Yield Bond ETF
Quick Verdict
SPHY has a lower expense ratio. SCHD delivered stronger 1-year returns. SPHY offers more diversification with 351 holdings.
Side-by-Side Comparison
| Metric | SCHD | SPHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $103.7B | $11.6B | |
| Dividend Yield | 3.31% | 7.24% | |
| Holdings | 104 | 1,942 | |
| YTD Return | +24.26% | +1.80% | |
| 1Y Return | +31.38% | +5.12% | |
| 3Y Return (annualized) | +15.08% | +8.12% | |
| 5Y Return (annualized) | +9.72% | +4.15% | |
| Volatility (annualized) | 13.6% | 8.6% | |
| Max Drawdown | -33.4% | -22.4% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jun 18, 2012 |
SCHD vs SPHY Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR Portfolio High Yield Bond ETF (SPHY) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.38% while SPHY returned +5.12%. Year to date, SCHD is up 24.26% versus a gain of 1.80% for SPHY.
Over three years, SCHD compounded at +15.08% per year against +8.12% for SPHY; over five years the annualized figures are +9.72% and +4.15% respectively. Across the full 7-year window we track, SCHD has the edge at +11.39% annualized vs +3.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 3.31% against 7.24% for SPHY.
Holdings Overlap
SCHD and SPHY share 1 holdings out of 450 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SPHY | Difference |
|---|---|---|---|
| GVMXX | 0.04% | 0.93% | 0.89% |
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. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or SPHY?
Over the past year SCHD returned +31.38% vs +5.12% for SPHY, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +11.39% vs +3.66% for SPHY. Past performance does not guarantee future results.
Which is riskier, SCHD or SPHY?
SCHD has been the more volatile fund at 13.6% annualized versus 8.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SPHY?
SCHD and SPHY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 450 unique securities.
Which pays a higher dividend, SCHD or SPHY?
SCHD yields 3.31% while SPHY yields 7.24%, so SPHY currently pays the higher dividend yield.
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