SPY vs SWPPX
State Street SPDR S&P 500 ETF Trust vs Schwab S&P 500 Index Fund
Quick Verdict
SWPPX has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | SWPPX | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.02% | |
| AUM | $821.1B | $150.5B | |
| Dividend Yield | 1.01% | 1.01% | |
| Holdings | 505 | 503 | |
| YTD Return | +13.47% | +12.75% | |
| 1Y Return | +20.57% | +18.76% | |
| 3Y Return (annualized) | +21.83% | -33.93% | |
| 5Y Return (annualized) | +12.88% | -22.33% | |
| Volatility (annualized) | 15.3% | 40.5% | |
| Max Drawdown | -56.5% | -83.7% | |
| Fund Family | State Street Investment Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 22, 1993 | May 19, 1997 |
SPY vs SWPPX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Schwab S&P 500 Index Fund (SWPPX) is a mutual fund from Charles Schwab Asset Management. Over the past year SPY returned +20.57% while SWPPX returned +18.76%. Year to date, SPY is up 13.47% versus a gain of 12.75% for SWPPX.
Over three years, SPY compounded at +21.83% per year against -33.93% for SWPPX; over five years the annualized figures are +12.88% and -22.33% respectively. Across the full 5-year window we track, SPY has the edge at +8.83% annualized vs -22.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWPPX has been the more volatile fund, with annualized monthly volatility of 40.5% compared with 15.3% for SPY. 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 -56.5% for SPY and -83.7% for SWPPX. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while SWPPX charges 0.02%. On a $10,000 position that is $9 vs $2 annually, a gap of $7 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 1.01% for SWPPX.
Holdings Overlap
SPY and SWPPX share 487 holdings out of 518 unique holdings combined, representing a 90.1% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, SPY or SWPPX?
SPY has an expense ratio of 0.09% while SWPPX charges 0.02%. SWPPX is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, SPY or SWPPX?
Over the past year SPY returned +20.57% vs +18.76% for SWPPX, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.83% vs -22.33% for SWPPX. Past performance does not guarantee future results.
Which is riskier, SPY or SWPPX?
SWPPX has been the more volatile fund at 40.5% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs SWPPX -83.7%.
Should I hold both SPY and SWPPX?
SPY and SWPPX have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and SWPPX?
SPY and SWPPX share 487 common holdings with a 90.1% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, SPY or SWPPX?
SPY yields 1.01% while SWPPX yields 1.01%, so SPY currently pays the higher dividend yield.
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