SCHJ vs SPY
SCHJ vs SPY
Schwab 1-5 Year Corporate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHJ has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SCHJ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $848M | $789.1B | |
| Dividend Yield | 4.49% | 1.01% | |
| Holdings | 3,132 | 505 | |
| YTD Return | +0.71% | +13.79% | |
| 1Y Return | +2.91% | +23.66% | |
| 3Y Return (annualized) | +5.16% | +21.40% | |
| 5Y Return (annualized) | +2.26% | +13.37% | |
| Volatility (annualized) | 3.4% | 15.3% | |
| Max Drawdown | -13.6% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 10, 2019 | Jan 22, 1993 |
SCHJ vs SPY Performance
Schwab 1-5 Year Corporate Bond ETF (SCHJ) 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 SCHJ returned +2.91% while SPY returned +23.66%. Year to date, SCHJ is up 0.71% versus a gain of 13.79% for SPY.
Over three years, SCHJ compounded at +5.16% per year against +21.40% for SPY; over five years the annualized figures are +2.26% and +13.37% respectively. Across the full 7-year window we track, SPY has the edge at +8.85% annualized vs +2.06%. 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 3.4% for SCHJ. 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 -13.6% for SCHJ 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHJ 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, SCHJ currently yields 4.49% against 1.01% for SPY.
Holdings Overlap
SCHJ and SPY share 1 holdings out of 522 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 SCHJ | Weight in SPY | Difference |
|---|---|---|---|
| AFL | 0.03% | 0.09% | 0.06% |
Frequently Asked Questions
Which is cheaper, SCHJ or SPY?
SCHJ has an expense ratio of 0.03% while SPY charges 0.09%. SCHJ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHJ or SPY?
Over the past year SCHJ returned +2.91% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), SCHJ annualized +2.06% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHJ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 3.4% for SCHJ. Worst drawdown: SCHJ -13.6% vs SPY -56.5%.
Should I hold both SCHJ and SPY?
SCHJ and SPY have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHJ and SPY?
SCHJ and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 522 unique securities.
Which pays a higher dividend, SCHJ or SPY?
SCHJ yields 4.49% while SPY yields 1.01%, so SCHJ currently pays the higher dividend yield.
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