SCYB vs SPY
Schwab High Yield Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCYB has a lower expense ratio. SPY delivered stronger 1-year returns. SCYB offers more diversification with 1,837 holdings.
Side-by-Side Comparison
| Metric | SCYB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $2.8B | $821.1B | |
| Dividend Yield | 6.95% | 1.01% | |
| Holdings | 1,837 | 505 | |
| YTD Return | +2.37% | +12.22% | |
| 1Y Return | +5.44% | +20.83% | |
| 3Y Return (annualized) | +8.46% | +21.70% | |
| 5Y Return (annualized) | - | +12.98% | |
| Volatility (annualized) | 4.4% | 15.3% | |
| Max Drawdown | -4.9% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 11, 2023 | Jan 22, 1993 |
SCYB vs SPY Performance
Schwab High Yield Bond ETF (SCYB) 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 SCYB returned +5.44% while SPY returned +20.83%. Year to date, SCYB is up 2.37% versus a gain of 12.22% for SPY.
Over three years, SCYB compounded at +8.46% per year against +21.70% for SPY. Across the full 3-year window we track, SPY has the edge at +8.79% annualized vs +8.08%. 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 4.4% for SCYB. 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 -4.9% for SCYB 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCYB 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, SCYB currently yields 6.95% against 1.01% for SPY.
Holdings Overlap
SCYB and SPY share 1 holdings out of 611 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCYB | Weight in SPY | Difference |
|---|---|---|---|
| MGM | 0.08% | 0.01% | 0.07% |
Frequently Asked Questions
Which is cheaper, SCYB or SPY?
SCYB has an expense ratio of 0.03% while SPY charges 0.09%. SCYB is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCYB or SPY?
Over the past year SCYB returned +5.44% vs +20.83% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), SCYB annualized +8.08% vs +8.79% for SPY. Past performance does not guarantee future results.
Which is riskier, SCYB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.4% for SCYB. Worst drawdown: SCYB -4.9% vs SPY -56.5%.
Should I hold both SCYB and SPY?
SCYB and SPY have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCYB and SPY?
SCYB and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 611 unique securities.
Which pays a higher dividend, SCYB or SPY?
SCYB yields 6.95% while SPY yields 1.01%, so SCYB currently pays the higher dividend yield.
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