SCHM vs SPY
Schwab US Mid Cap ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHM has a lower expense ratio. SCHM delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SCHM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $14.6B | $789.1B | |
| Dividend Yield | 1.20% | 1.01% | |
| Holdings | 497 | 505 | |
| YTD Return | +18.72% | +13.39% | |
| 1Y Return | +29.30% | +22.52% | |
| 3Y Return (annualized) | +16.12% | +21.36% | |
| 5Y Return (annualized) | +7.99% | +13.19% | |
| Volatility (annualized) | 17.2% | 15.3% | |
| Max Drawdown | -42.4% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 13, 2011 | Jan 22, 1993 |
SCHM vs SPY Performance
Schwab US Mid Cap ETF (SCHM) 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 SCHM returned +29.30% while SPY returned +22.52%. Year to date, SCHM is up 18.72% versus a gain of 13.39% for SPY.
Over three years, SCHM compounded at +16.12% per year against +21.36% for SPY; over five years the annualized figures are +7.99% and +13.19% respectively. Across the full 16-year window we track, SCHM has the edge at +10.37% annualized vs +8.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHM has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 15.3% 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 -42.4% for SCHM 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHM 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, SCHM currently yields 1.20% against 1.01% for SPY.
Holdings Overlap
SCHM and SPY share 84 holdings out of 913 unique holdings combined, representing a 2.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHM or SPY?
SCHM has an expense ratio of 0.03% while SPY charges 0.09%. SCHM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHM or SPY?
Over the past year SCHM returned +29.30% vs +22.52% for SPY, so SCHM leads on 1-year performance. Over the longest common window we track (16 years), SCHM annualized +10.37% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHM or SPY?
SCHM has been the more volatile fund at 17.2% annualized versus 15.3% for SPY. Worst drawdown: SCHM -42.4% vs SPY -56.5%.
Should I hold both SCHM and SPY?
SCHM and SPY have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between SCHM and SPY?
SCHM and SPY share 84 common holdings with a 2.6% weight overlap. Combined, they hold 913 unique securities.
Which pays a higher dividend, SCHM or SPY?
SCHM yields 1.20% while SPY yields 1.01%, so SCHM currently pays the higher dividend yield.
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