SCHZ vs SPY
SCHZ vs SPY
Schwab US Aggregate Bond ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SCHZ has a lower expense ratio. SPY delivered stronger 1-year returns. SCHZ offers more diversification with 696 holdings.
Side-by-Side Comparison
| Metric | SCHZ | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $10.5B | $789.1B | |
| Dividend Yield | 4.10% | 1.01% | |
| Holdings | 11,809 | 505 | |
| YTD Return | -0.27% | +13.28% | |
| 1Y Return | +1.96% | +23.94% | |
| 3Y Return (annualized) | +3.98% | +21.07% | |
| 5Y Return (annualized) | -0.46% | +13.27% | |
| Volatility (annualized) | 4.5% | 15.3% | |
| Max Drawdown | -19.7% | -56.5% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 14, 2011 | Jan 22, 1993 |
SCHZ vs SPY Performance
Schwab US Aggregate Bond ETF (SCHZ) 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 SCHZ returned +1.96% while SPY returned +23.94%. Year to date, SCHZ is down 0.27% versus a gain of 13.28% for SPY.
Over three years, SCHZ compounded at +3.98% per year against +21.07% for SPY; over five years the annualized figures are -0.46% and +13.27% respectively. Across the full 15-year window we track, SPY has the edge at +8.84% annualized vs +0.56%. 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 4.5% for SCHZ. 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 -19.7% for SCHZ 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHZ 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, SCHZ currently yields 4.10% against 1.01% for SPY.
Holdings Overlap
SCHZ and SPY share 0 holdings out of 1199 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHZ or SPY?
SCHZ has an expense ratio of 0.03% while SPY charges 0.09%. SCHZ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHZ or SPY?
Over the past year SCHZ returned +1.96% vs +23.94% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), SCHZ annualized +0.56% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, SCHZ or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 4.5% for SCHZ. Worst drawdown: SCHZ -19.7% vs SPY -56.5%.
Should I hold both SCHZ and SPY?
SCHZ and SPY have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHZ and SPY?
SCHZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1199 unique securities.
Which pays a higher dividend, SCHZ or SPY?
SCHZ yields 4.10% while SPY yields 1.01%, so SCHZ currently pays the higher dividend yield.
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