SCHO vs SPY
SCHO vs SPY
Schwab Short-Term US Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHO has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SCHO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $12.8B | $789.1B | |
| Dividend Yield | 3.90% | 1.01% | |
| Holdings | 98 | 505 | |
| YTD Return | +0.66% | +13.79% | |
| 1Y Return | +2.46% | +23.66% | |
| 3Y Return (annualized) | +3.99% | +21.40% | |
| 5Y Return (annualized) | +1.78% | +13.37% | |
| Volatility (annualized) | 1.4% | 15.3% | |
| Max Drawdown | -6.3% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 5, 2010 | Jan 22, 1993 |
SCHO vs SPY Performance
Schwab Short-Term US Treasury ETF (SCHO) 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 SCHO returned +2.46% while SPY returned +23.66%. Year to date, SCHO is up 0.66% versus a gain of 13.79% for SPY.
Over three years, SCHO compounded at +3.99% per year against +21.40% for SPY; over five years the annualized figures are +1.78% and +13.37% respectively. Across the full 16-year window we track, SPY has the edge at +8.85% annualized vs +0.72%. 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 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 -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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.90% against 1.01% for SPY.
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. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHO or SPY?
Over the past year SCHO returned +2.46% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), SCHO annualized +0.72% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 1.4% for SCHO. Worst drawdown: SCHO -6.3% vs SPY -56.5%.
Should I hold both SCHO and SPY?
SCHO and SPY have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHO or SPY?
SCHO yields 3.90% while SPY yields 1.01%, so SCHO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.