SCHQ vs SPY
Schwab Long-Term US Treasury ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHQ has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SCHQ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $803M | $821.1B | |
| Dividend Yield | 4.91% | 1.01% | |
| Holdings | 100 | 505 | |
| YTD Return | -1.71% | +13.17% | |
| 1Y Return | +0.84% | +21.53% | |
| 3Y Return (annualized) | +1.50% | +22.06% | |
| 5Y Return (annualized) | -7.00% | +13.35% | |
| Volatility (annualized) | 13.5% | 15.3% | |
| Max Drawdown | -46.7% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 10, 2019 | Jan 22, 1993 |
SCHQ vs SPY Performance
Schwab Long-Term US Treasury ETF (SCHQ) 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 SCHQ returned +0.84% while SPY returned +21.53%. Year to date, SCHQ is down 1.71% versus a gain of 13.17% for SPY.
Over three years, SCHQ compounded at +1.50% per year against +22.06% for SPY; over five years the annualized figures are -7.00% and +13.35% respectively. Across the full 7-year window we track, SPY has the edge at +8.82% annualized vs -4.27%. 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 13.5% for SCHQ. 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 -46.7% for SCHQ 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHQ 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, SCHQ currently yields 4.91% against 1.01% for SPY.
Holdings Overlap
SCHQ and SPY share 0 holdings out of 596 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHQ or SPY?
SCHQ has an expense ratio of 0.03% while SPY charges 0.09%. SCHQ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHQ or SPY?
Over the past year SCHQ returned +0.84% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), SCHQ annualized -4.27% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHQ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.5% for SCHQ. Worst drawdown: SCHQ -46.7% vs SPY -56.5%.
Should I hold both SCHQ and SPY?
SCHQ and SPY have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHQ and SPY?
SCHQ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 596 unique securities.
Which pays a higher dividend, SCHQ or SPY?
SCHQ yields 4.91% while SPY yields 1.01%, so SCHQ currently pays the higher dividend yield.
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