SCHD vs SPY
Schwab US Dividend Equity ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, SCHD or SPY?
Large Cap Value against Large Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, SPY over 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 41.8%.
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 | SPY |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.09% |
| AUM | $112.1B | $804.7B |
| Dividend Yield | 3.00% | 0.98% |
| Holdings | 103 | 505 |
| YTD Return | +24.23%Best | +12.22% |
| 1Y Return | +27.90%Best | +16.97% |
| 3Y Return (annualized) | +15.55% | +21.16%Best |
| 5Y Return (annualized) | +9.97% | +13.00%Best |
| Volatility (annualized) | 13.6%Best | 13.9% |
| Max Drawdown | -33.4%Best | -34.1% |
| $10,000 over 5 years | $16,083 | $18,424Best |
| Top 10 Weight | 41.8% | 37.8%Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Oct 20, 2011 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 17, 2026 (14.9 years).
SCHD vs SPY 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 14.9 years both funds cover.
SCHD vs SPY Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year SCHD returned +27.90% while SPY returned +16.97%. Year to date, SCHD is up 24.23% versus a gain of 12.22% for SPY.
Over three years, SCHD compounded at +15.55% per year against +21.16% for SPY; over five years the annualized figures are +9.97% and +13.00% respectively. Across the full 15-year window we track, SPY has the edge at +13.66% annualized vs +11.30%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 13.6% for SCHD. 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 -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while SPY charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 0.98% for SPY.
Holdings Overlap
92.0% of SCHD's money is in holdings SPY also owns. 7.9% of SPY's money is in holdings SCHD also owns.
Most of SCHD is already inside SPY. Owning both mostly buys the same companies twice.
45 positions in common, counted across the 100 positions we hold weights for in SCHD and 504 in SPY, against full books of 103 and 505.
What only one of them owns
Our book lists 452 positions for SPY that do not appear in our book for SCHD (91.5% of the fund), and 54 for SCHD that do not appear in SPY (7.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in SPY | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 4.77% | 0.56% | 4.21% |
| AMGNAmgen Inc. | 4.70% | 0.36% | 4.34% |
| ABTAbbott Laboratories | 4.69% | 0.29% | 4.40% |
| KOCoca Cola Co. | 4.17% | 0.52% | 3.65% |
| CVXChevron Corp | 4.02% | 0.60% | 3.42% |
| UNHUnitedhealth Group Incorporated | 3.82% | 0.55% | 3.27% |
| HDHome Depot Inc/The | 3.88% | 0.48% | 3.40% |
| PGProcter & Gamble Company | 3.83% | 0.52% | 3.31% |
| VZVerizon Communic | 3.97% | 0.32% | 3.65% |
| COPConocophillips Common Stock USD 0.01 | 3.94% | 0.25% | 3.69% |
92.0% of SCHD is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SPY?
SCHD has an expense ratio of 0.06% while SPY charges 0.09%. SCHD is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SCHD or SPY?
Over the past year SCHD returned +27.90% vs +16.97% for SPY, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.30% vs +13.66% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SPY?
SPY has been the more volatile fund at 13.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SPY -34.1%.
Should I hold both SCHD and SPY?
SCHD and SPY have a monthly-return correlation of 0.85, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SCHD and SPY?
92.0% of SCHD's money is in holdings SPY also owns. 7.9% of SPY's is in holdings SCHD also owns. They hold 45 positions in common, counted across the 100 positions we hold weights for in SCHD and 504 in SPY.
Which pays a higher dividend, SCHD or SPY?
SCHD yields 3.00% while SPY yields 0.98%, so SCHD currently pays the higher dividend yield.
Is SPY better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, SPY over 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.