SCHI vs SPY
Schwab 5-10 Year Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHI has a lower expense ratio. SPY delivered stronger 1-year returns. SCHI offers more diversification with 2,329 holdings.
Side-by-Side Comparison
| Metric | SCHI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $11.5B | $821.1B | |
| Dividend Yield | 5.12% | 1.01% | |
| Holdings | 2,329 | 505 | |
| YTD Return | +0.00% | +13.47% | |
| 1Y Return | +2.31% | +20.57% | |
| 3Y Return (annualized) | +6.14% | +21.83% | |
| 5Y Return (annualized) | +0.77% | +12.88% | |
| Volatility (annualized) | 7.6% | 15.3% | |
| Max Drawdown | -20.7% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 10, 2019 | Jan 22, 1993 |
SCHI vs SPY Performance
Schwab 5-10 Year Corporate Bond ETF (SCHI) is a ETF from Charles Schwab Asset Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year SCHI returned +2.31% while SPY returned +20.57%. Year to date, SCHI is up 0.00% versus a gain of 13.47% for SPY.
Over three years, SCHI compounded at +6.14% per year against +21.83% for SPY; over five years the annualized figures are +0.77% and +12.88% respectively. Across the full 7-year window we track, SPY has the edge at +8.83% annualized vs +1.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.6% for SCHI. 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 -20.7% for SCHI and -56.5% for SPY. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHI charges 0.03% per year while SPY charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHI currently yields 5.12% against 1.01% for SPY.
Holdings Overlap
SCHI and SPY share 3 holdings out of 640 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHI or SPY?
SCHI has an expense ratio of 0.03% while SPY charges 0.09%. SCHI is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHI or SPY?
Over the past year SCHI returned +2.31% vs +20.57% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), SCHI annualized +1.56% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.6% for SCHI. Worst drawdown: SCHI -20.7% vs SPY -56.5%.
Should I hold both SCHI and SPY?
SCHI and SPY have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHI and SPY?
SCHI and SPY share 3 common holdings with a 0.2% weight overlap. Combined, they hold 640 unique securities.
Which pays a higher dividend, SCHI or SPY?
SCHI yields 5.12% while SPY yields 1.01%, so SCHI currently pays the higher dividend yield.
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