SCHD vs SPSB
SCHD vs SPSB
Schwab US Dividend Equity ETF vs State Street SPDR Portfolio Short Term Corporate Bond ETF
Quick Verdict
SPSB has a lower expense ratio. SCHD delivered stronger 1-year returns. SPSB offers more diversification with 460 holdings.
Side-by-Side Comparison
| Metric | SCHD | SPSB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.04% | |
| AUM | $103.7B | $10.5B | |
| Dividend Yield | 3.31% | 4.39% | |
| Holdings | 104 | 1,553 | |
| YTD Return | +24.26% | +1.10% | |
| 1Y Return | +31.38% | +3.25% | |
| 3Y Return (annualized) | +15.08% | +5.14% | |
| 5Y Return (annualized) | +9.72% | +2.78% | |
| Volatility (annualized) | 13.6% | 1.8% | |
| Max Drawdown | -33.4% | -11.8% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Dec 16, 2009 |
SCHD vs SPSB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR Portfolio Short Term Corporate Bond ETF (SPSB) is a ETF from State Street Investment Management. Over the past year SCHD returned +31.38% while SPSB returned +3.25%. Year to date, SCHD is up 24.26% versus a gain of 1.10% for SPSB.
Over three years, SCHD compounded at +15.08% per year against +5.14% for SPSB; over five years the annualized figures are +9.72% and +2.78% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.03%. 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 1.8% for SPSB. 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 -11.8% for SPSB. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SPSB charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.39% for SPSB.
Holdings Overlap
SCHD and SPSB share 1 holdings out of 559 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 SPSB | Difference |
|---|---|---|---|
| GVMXX | 0.04% | 0.23% | 0.19% |
Frequently Asked Questions
Which is cheaper, SCHD or SPSB?
SCHD has an expense ratio of 0.06% while SPSB charges 0.04%. SPSB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SCHD or SPSB?
Over the past year SCHD returned +31.38% vs +3.25% for SPSB, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +1.03% for SPSB. Past performance does not guarantee future results.
Which is riskier, SCHD or SPSB?
SCHD has been the more volatile fund at 13.6% annualized versus 1.8% for SPSB. Worst drawdown: SCHD -33.4% vs SPSB -11.8%.
Should I hold both SCHD and SPSB?
SCHD and SPSB have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SPSB?
SCHD and SPSB share 1 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, SCHD or SPSB?
SCHD yields 3.31% while SPSB yields 4.39%, so SPSB currently pays the higher dividend yield.
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