SCHO vs SPY
Schwab Short-Term US Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, SCHO or SPY?
Short Term Government Bond against Large Cap Blend.
SCHO has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window.
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 | SCHO | SPY |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.09% |
| AUM | $15.1B | $804.7B |
| Dividend Yield | 3.87% | 0.98% |
| Holdings | 97 | 505 |
| YTD Return | +0.50% | +10.96%Best |
| 1Y Return | +1.55% | +15.52%Best |
| 3Y Return (annualized) | +3.97% | +20.73%Best |
| 5Y Return (annualized) | +1.74% | +12.53%Best |
| Volatility (annualized) | 1.4%Best | 14.2% |
| Max Drawdown | -6.3%Best | -34.1% |
| $10,000 over 5 years | $10,901 | $18,044Best |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management |
| Category | Fixed Income | Equity |
| Style | Short Term Government Bond | Large Cap Blend |
| Inception | Aug 5, 2010 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 5, 2010 to Sep 16, 2026 (16.1 years).
SCHO 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SCHO vs SPY Performance
Schwab Short-Term US Treasury ETF (SCHO) 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 SCHO returned +1.55% while SPY returned +15.52%. Year to date, SCHO is up 0.50% versus a gain of 10.96% for SPY.
Over three years, SCHO compounded at +3.97% per year against +20.73% for SPY; over five years the annualized figures are +1.74% and +12.53% respectively. Across the full 16-year window we track, SPY has the edge at +13.03% annualized vs +0.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 1.4% for SCHO. 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 -6.3% for SCHO 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 0.08. They move largely independently of each other.
Fees and Cost Over Time
SCHO 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, SCHO currently yields 3.87% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 1 holding in SCHO and 504 in SPY, totalling 0.3% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1 positions we hold weights for in SCHO and 504 in SPY, against full books of 97 and 505.
You are not choosing between two funds in isolation.
Whichever of SCHO 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, SCHO or SPY?
SCHO has an expense ratio of 0.03% while SPY charges 0.09%. SCHO is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SCHO or SPY?
Over the past year SCHO returned +1.55% vs +15.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), SCHO annualized +0.70% vs +13.03% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHO or SPY?
SPY has been the more volatile fund at 14.2% annualized versus 1.4% for SCHO. Worst drawdown: SCHO -6.3% vs SPY -34.1%.
Should I hold both SCHO and SPY?
SCHO and SPY have a monthly-return correlation of 0.08, 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, SCHO or SPY?
SCHO yields 3.87% while SPY yields 0.98%, so SCHO currently pays the higher dividend yield.
Is SPY better than SCHO?
SCHO has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.