SCHP vs SPY
Schwab US TIPs ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHP has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | SCHP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $16.3B | $789.1B | |
| Dividend Yield | 4.00% | 1.01% | |
| Holdings | 49 | 505 | |
| YTD Return | -0.16% | +13.39% | |
| 1Y Return | +0.93% | +22.52% | |
| 3Y Return (annualized) | +3.86% | +21.36% | |
| 5Y Return (annualized) | +0.27% | +13.19% | |
| Volatility (annualized) | 5.0% | 15.3% | |
| Max Drawdown | -14.3% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 5, 2010 | Jan 22, 1993 |
SCHP vs SPY Performance
Schwab US TIPs ETF (SCHP) 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 SCHP returned +0.93% while SPY returned +22.52%. Year to date, SCHP is down 0.16% versus a gain of 13.39% for SPY.
Over three years, SCHP compounded at +3.86% per year against +21.36% for SPY; over five years the annualized figures are +0.27% and +13.19% respectively. Across the full 16-year window we track, SPY has the edge at +8.84% annualized vs +1.66%. 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 5.0% for SCHP. 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 -14.3% for SCHP 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHP 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, SCHP currently yields 4.00% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, SCHP or SPY?
SCHP has an expense ratio of 0.03% while SPY charges 0.09%. SCHP is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHP or SPY?
Over the past year SCHP returned +0.93% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), SCHP annualized +1.66% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHP or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.0% for SCHP. Worst drawdown: SCHP -14.3% vs SPY -56.5%.
Should I hold both SCHP and SPY?
SCHP and SPY have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHP or SPY?
SCHP yields 4.00% while SPY yields 1.01%, so SCHP 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.