SCHE vs SPY
Schwab Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, SCHE or SPY?
SPY has been ahead.
SCHE has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SCHE is less concentrated, with 29.8% of the fund in its ten largest positions against 37.8%.
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 | SCHE | SPY |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.09% |
| AUM | $13.1B | $804.7B |
| Dividend Yield | 2.64% | 0.98% |
| Holdings | 2,210 | 505 |
| YTD Return | +8.91% | +12.22%Best |
| 1Y Return | +12.40% | +15.43%Best |
| 3Y Return (annualized) | +18.83% | +22.71%Best |
| 5Y Return (annualized) | +6.74% | +13.64%Best |
| Volatility (annualized) | 17.1% | 14.4%Best |
| Max Drawdown | -43.1% | -34.1%Best |
| $10,000 over 5 years | $13,856 | $18,952Best |
| Top 10 Weight | 29.8%Best | 37.8% |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 14, 2010 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jan 14, 2010 to Sep 30, 2026 (16.7 years).
SCHE 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 16.7 years both funds cover.
SCHE vs SPY Performance
Schwab Emerging Markets Equity ETF (SCHE) 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 SCHE returned +12.40% while SPY returned +15.43%. Year to date, SCHE is up 8.91% versus a gain of 12.22% for SPY.
Over three years, SCHE compounded at +18.83% per year against +22.71% for SPY; over five years the annualized figures are +6.74% and +13.64% respectively. Across the full 17-year window we track, SPY has the edge at +12.49% annualized vs +3.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHE has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.4% for SPY. 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 -43.1% for SCHE 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHE 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, SCHE currently yields 2.64% against 0.98% for SPY.
Holdings Overlap
0.1% of SCHE's money is in holdings SPY also owns. 0.1% of SPY's money is in holdings SCHE also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 2,133 positions we hold weights for in SCHE and 504 in SPY, against full books of 2,210 and 505.
What only one of them owns
Our book lists 496 positions for SPY that do not appear in our book for SCHE (99.3% of the fund), and 27 for SCHE that do not appear in SPY (2.8%).
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 SCHE | Weight in SPY | Difference |
|---|---|---|---|
| HALHalliburton Co. | 0.09% | 0.05% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of SCHE and SPY 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, SCHE or SPY?
SCHE has an expense ratio of 0.06% while SPY charges 0.09%. SCHE is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SCHE or SPY?
Over the past year SCHE returned +12.40% vs +15.43% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SCHE annualized +3.15% vs +12.49% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHE or SPY?
SCHE has been the more volatile fund at 17.1% annualized versus 14.4% for SPY. Worst drawdown: SCHE -43.1% vs SPY -34.1%.
Should I hold both SCHE and SPY?
SCHE and SPY have a monthly-return correlation of 0.70, 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, SCHE or SPY?
SCHE yields 2.64% while SPY yields 0.98%, so SCHE currently pays the higher dividend yield.
Is SPY better than SCHE?
SCHE has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SCHE is less concentrated, with 29.8% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.