SCHR vs SPY

Quick Verdict

SCHR has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SCHRHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricSCHRSPYWinner
Expense Ratio0.03%0.09%
AUM$13.3B$789.1B
Dividend Yield3.90%1.01%
Holdings101505
YTD Return-0.72%+13.68%
1Y Return+1.37%+21.53%
3Y Return (annualized)+3.92%+21.44%
5Y Return (annualized)-0.12%+13.18%
Volatility (annualized)4.2%15.3%
Max Drawdown-16.6%-56.5%
Fund FamilyCharles Schwab Asset ManagementState Street Investment Management
CategoryFixed IncomeEquity
InceptionAug 5, 2010Jan 22, 1993

SCHR vs SPY Performance

Schwab Intermediate-Term US Treasury ETF (SCHR) 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 SCHR returned +1.37% while SPY returned +21.53%. Year to date, SCHR is down 0.72% versus a gain of 13.68% for SPY.

Over three years, SCHR compounded at +3.92% per year against +21.44% for SPY; over five years the annualized figures are -0.12% and +13.18% respectively. Across the full 16-year window we track, SPY has the edge at +8.85% annualized vs +0.83%. 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 4.2% for SCHR. 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 -16.6% for SCHR 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHR 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, SCHR currently yields 3.90% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, SCHR or SPY?

SCHR has an expense ratio of 0.03% while SPY charges 0.09%. SCHR is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, SCHR or SPY?

Over the past year SCHR returned +1.37% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), SCHR annualized +0.83% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, SCHR or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 4.2% for SCHR. Worst drawdown: SCHR -16.6% vs SPY -56.5%.

Should I hold both SCHR and SPY?

SCHR and SPY have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHR or SPY?

SCHR yields 3.90% while SPY yields 1.01%, so SCHR currently pays the higher dividend yield.

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