SCMB vs SPY
Schwab Municipal Bond ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, SCMB or SPY?
Municipal Bond against Large Cap Blend.
SCMB has a lower expense ratio. SPY led over 1Y, 3Y 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 | SCMB | SPY |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.09% |
| AUM | $3.0B | $811.2B |
| Dividend Yield | 3.60% | 0.98% |
| Holdings | 7,278 | 1,515 |
| YTD Return | -3.62% | +14.79%Best |
| 1Y Return | -2.73% | +18.62%Best |
| 3Y Return (annualized) | +2.40% | +23.21%Best |
| 5Y Return (annualized) | - | +13.92% |
| Volatility (annualized) | 6.2%Best | 12.8% |
| Max Drawdown | -6.7%Best | -18.8% |
| $10,000 over 4 years | $10,982 | $22,986Best |
| Fund Family | Charles Schwab Investment Mangement | State Street Investment Management |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Oct 11, 2022 | Jan 22, 1993 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Oct 12, 2022 to Oct 12, 2026 (4 years).
SCMB 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 covers the 4 years both funds cover.
SCMB vs SPY Performance
Schwab Municipal Bond ETF (SCMB) is an ETF from Charles Schwab Investment Mangement and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year SCMB returned -2.73% while SPY returned +18.62%. Year to date, SCMB is down 3.62% versus a gain of 14.79% for SPY.
Over three years, SCMB compounded at +2.40% per year against +23.21% for SPY. Across the full 4-year window we track, SPY has the edge at +23.13% annualized vs +2.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 12.8% compared with 6.2% for SCMB. 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 -6.7% for SCMB and -18.8% 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 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCMB 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, SCMB currently yields 3.60% against 0.98% for SPY.
Holdings Overlap
We hold position weights for 30 holdings in SCMB and 504 in SPY, totalling 1.3% and 99.8% 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 30 positions we hold weights for in SCMB and 504 in SPY, against full books of 7,278 and 1,515.
You are not choosing between two funds in isolation.
Whichever of SCMB 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, SCMB or SPY?
SCMB has an expense ratio of 0.03% while SPY charges 0.09%. SCMB is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SCMB or SPY?
Over the past year SCMB returned -2.73% vs +18.62% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (4 years), SCMB annualized +2.37% vs +23.13% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCMB or SPY?
SPY has been the more volatile fund at 12.8% annualized versus 6.2% for SCMB. Worst drawdown: SCMB -6.7% vs SPY -18.8%.
Should I hold both SCMB and SPY?
SCMB and SPY have a monthly-return correlation of 0.66, 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, SCMB or SPY?
SCMB yields 3.60% while SPY yields 0.98%, so SCMB currently pays the higher dividend yield.
Is SPY better than SCMB?
SCMB has a lower expense ratio. SPY led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.