SPY vs SWTSX

Quick Verdict

SWTSX has a lower expense ratio. SPY delivered stronger 1-year returns. SWTSX offers more diversification with 2963 holdings.

Lower Fees: SWTSXHigher Returns: SPYMore Diversified: SWTSX

Side-by-Side Comparison

MetricSPYSWTSXWinner
Expense Ratio0.09%0.03%
AUM$789.1B$43.8B
Dividend Yield1.01%0.99%
Holdings5052,987
YTD Return+13.79%+13.38%
1Y Return+23.66%-82.60%
3Y Return (annualized)+21.40%-37.50%
5Y Return (annualized)+13.37%-25.04%
Volatility (annualized)15.3%41.7%
Max Drawdown-56.5%-86.0%
Fund FamilyState Street Investment ManagementCharles Schwab Asset Management
CategoryEquityEquity
InceptionJan 22, 1993Jun 1, 1999

SPY vs SWTSX Performance

State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and Schwab Total Stock Market Index Fund (SWTSX) is a mutual fund from Charles Schwab Asset Management. Over the past year SPY returned +23.66% while SWTSX returned -82.60%. Year to date, SPY is up 13.79% versus a gain of 13.38% for SWTSX.

Over three years, SPY compounded at +21.40% per year against -37.50% for SWTSX; over five years the annualized figures are +13.37% and -25.04% respectively. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs -25.04%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SWTSX has been the more volatile fund, with annualized monthly volatility of 41.7% 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 -86.0% for SWTSX. 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 SWTSX charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.99% for SWTSX.

Holdings Overlap

82.2%overlap

SPY and SWTSX share 490 holdings out of 2976 unique holdings combined, representing a 82.2% weight overlap.

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

Top Shared Holdings

StockWeight in SPYWeight in SWTSXDifference
NVDA7.31%6.91%0.40%
AAPL7.09%5.70%1.39%
MSFT4.43%4.76%0.33%
AMZNProProPro
GOOGProProPro
AVGOProProPro
METAProProPro
TSLAProProPro
BRK.BProProPro
LLYProProPro
See all 10 holdings SPY shares with SWTSX
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Frequently Asked Questions

Which is cheaper, SPY or SWTSX?

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

Which performed better, SPY or SWTSX?

Over the past year SPY returned +23.66% vs -82.60% for SWTSX, so SPY leads on 1-year performance. Over the longest common window we track (5 years), SPY annualized +8.85% vs -25.04% for SWTSX. Past performance does not guarantee future results.

Which is riskier, SPY or SWTSX?

SWTSX has been the more volatile fund at 41.7% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs SWTSX -86.0%.

Should I hold both SPY and SWTSX?

SPY and SWTSX 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 SWTSX?

SPY and SWTSX share 490 common holdings with a 82.2% weight overlap. Combined, they hold 2976 unique securities.

Which pays a higher dividend, SPY or SWTSX?

SPY yields 1.01% while SWTSX yields 0.99%, so SPY currently pays the higher dividend yield.

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