SCHE vs SPY
SCHE vs SPY
Schwab Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHE has a lower expense ratio. SPY delivered stronger 1-year returns. SCHE offers more diversification with 1410 holdings.
Side-by-Side Comparison
| Metric | SCHE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.09% | |
| AUM | $12.5B | $789.1B | |
| Dividend Yield | 2.66% | 1.01% | |
| Holdings | 2,210 | 505 | |
| YTD Return | +9.62% | +13.28% | |
| 1Y Return | +22.98% | +23.94% | |
| 3Y Return (annualized) | +16.80% | +21.07% | |
| 5Y Return (annualized) | +6.38% | +13.27% | |
| Volatility (annualized) | 17.2% | 15.3% | |
| Max Drawdown | -43.1% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2010 | Jan 22, 1993 |
SCHE vs SPY Performance
Schwab Emerging Markets Equity ETF (SCHE) 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 SCHE returned +22.98% while SPY returned +23.94%. Year to date, SCHE is up 9.62% versus a gain of 13.28% for SPY.
Over three years, SCHE compounded at +16.80% per year against +21.07% for SPY; over five years the annualized figures are +6.38% and +13.27% respectively. Across the full 17-year window we track, SPY has the edge at +8.84% annualized vs +3.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHE has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -43.1% for SCHE 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHE charges 0.06% per year while SPY charges 0.09%. On a $10,000 position that is $6 vs $9 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHE currently yields 2.66% against 1.01% for SPY.
Holdings Overlap
SCHE and SPY share 1 holdings out of 1912 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 SCHE | Weight in SPY | Difference |
|---|---|---|---|
| HAL | 0.08% | 0.04% | 0.04% |
Frequently Asked Questions
Which is cheaper, SCHE or SPY?
SCHE has an expense ratio of 0.06% while SPY charges 0.09%. SCHE is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHE or SPY?
Over the past year SCHE returned +22.98% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (17 years), SCHE annualized +3.22% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHE or SPY?
SCHE has been the more volatile fund at 17.2% annualized versus 15.3% for SPY. Worst drawdown: SCHE -43.1% vs SPY -56.5%.
Should I hold both SCHE and SPY?
SCHE and SPY have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHE and SPY?
SCHE and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1912 unique securities.
Which pays a higher dividend, SCHE or SPY?
SCHE yields 2.66% while SPY yields 1.01%, so SCHE currently pays the higher dividend yield.
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