SCHB vs SPY

Quick Verdict

SCHB has a lower expense ratio. SCHB delivered stronger 1-year returns. SCHB offers more diversification with 1569 holdings.

Lower Fees: SCHBHigher Returns: SCHBMore Diversified: SCHB

Side-by-Side Comparison

MetricSCHBSPYWinner
Expense Ratio0.03%0.09%
AUM$42.9B$789.1B
Dividend Yield1.04%1.01%
Holdings2,400505
YTD Return+13.65%+13.28%
1Y Return+24.10%+23.94%
3Y Return (annualized)+20.74%+21.07%
5Y Return (annualized)+12.30%+13.27%
Volatility (annualized)14.9%15.3%
Max Drawdown-35.3%-56.5%
Fund FamilyCharles Schwab Asset ManagementState Street Investment Management
CategoryEquityEquity
InceptionNov 3, 2009Jan 22, 1993

SCHB vs SPY Performance

Schwab US Broad Market ETF (SCHB) 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 SCHB returned +24.10% while SPY returned +23.94%. Year to date, SCHB is up 13.65% versus a gain of 13.28% for SPY.

Over three years, SCHB compounded at +20.74% per year against +21.07% for SPY; over five years the annualized figures are +12.30% and +13.27% respectively. Across the full 17-year window we track, SCHB has the edge at +13.06% annualized vs +8.84%. 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 14.9% for SCHB. 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 -35.3% for SCHB 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 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

SCHB 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, SCHB currently yields 1.04% against 1.01% for SPY.

Holdings Overlap

83.6%overlap

SCHB and SPY share 469 holdings out of 1603 unique holdings combined, representing a 83.6% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in SCHBWeight in SPYDifference
NVDA6.72%7.31%0.59%
AAPL5.91%7.09%1.18%
MSFT4.36%4.43%0.07%
AMZNProProPro
GOOGLProProPro
AVGOProProPro
GOOGProProPro
METAProProPro
TSLAProProPro
JPMProProPro
See all 10 holdings SCHB shares with SPY
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Frequently Asked Questions

Which is cheaper, SCHB or SPY?

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

Which performed better, SCHB or SPY?

Over the past year SCHB returned +24.10% vs +23.94% for SPY, so SCHB leads on 1-year performance. Over the longest common window we track (17 years), SCHB annualized +13.06% vs +8.84% for SPY. Past performance does not guarantee future results.

Which is riskier, SCHB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 14.9% for SCHB. Worst drawdown: SCHB -35.3% vs SPY -56.5%.

Should I hold both SCHB and SPY?

SCHB and SPY have a monthly-return correlation of 1.00, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between SCHB and SPY?

SCHB and SPY share 469 common holdings with a 83.6% weight overlap. Combined, they hold 1603 unique securities.

Which pays a higher dividend, SCHB or SPY?

SCHB yields 1.04% while SPY yields 1.01%, so SCHB currently pays the higher dividend yield.

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