SPY vs SCHD: Head-to-Head Comparison
SPY vs SCHD: SPDR S&P 500 ETF Trust has an expense ratio of 9.45% while Schwab U.S. Dividend Equity ETF charges 0.06%. SPY holds 503 securities vs SCHD's 103. 5-year returns: 15.70% vs 12.10%.
Last updated: April 2026
S&P vs Dividend
Quick Verdict
Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals.
Side-by-Side Comparison
| Metric | SPY | SCHD |
|---|---|---|
| Expense Ratio | 9.45% | 0.06% |
| AUM | $600.0B | $62.0B |
| Dividend Yield | 1.20% | 3.40% |
| Holdings | 503 | 103 |
| 1-Year Return | 26.50% | 12.90% |
| 5-Year Return (Ann.) | 15.70% | 12.10% |
| 10-Year Return (Ann.) | 13.20% | 11.50% |
| Beta | 1.00 | 0.82 |
| P/E Ratio | 25.8 | 16.8 |
SPY 5-year annualized return is 15.70% compared to SCHD's 12.10%. Over 10 years, SPY returned 13.20% vs SCHD's 11.50%.
View data table
| Period | SPY Return | SCHD Return |
|---|---|---|
| YTD | 3.10% | 1.80% |
| 1 Year | 26.50% | 12.90% |
| 3 Year | 11.10% | 7.20% |
| 5 Year | 15.70% | 12.10% |
| 10 Year | 13.20% | 11.50% |
Key Differences Between SPY and SCHD
SPY (SPDR S&P 500 ETF Trust) is a u.s. large-cap blend fund managed by State Street Global Advisors. SPY was the very first ETF listed in the United States and remains the most heavily traded ETF in the world. Like VOO, it tracks the S&P 500 index, but SPY is especially popular among active traders due to its enormous daily trading volume. Beginners should know that SPY and VOO hold the same stocks, but SPY has a slightly higher expense ratio.
SCHD (Schwab U.S. Dividend Equity ETF) is a u.s. large-cap dividend fund managed by Charles Schwab. SCHD focuses on high-quality U.S. companies with strong track records of paying and growing dividends. It uses a rules-based approach to select about 100 stocks that have consistently paid dividends for at least 10 years. Beginners who want both income and growth often find SCHD attractive because it combines a solid dividend yield with quality stock selection at a very low cost.
The most notable differences are in fees (9.45% vs 0.06%), number of holdings (503 vs 103), and 5-year returns (15.70% vs 12.10%).
SPY vs SCHD multi-factor comparison: SPY has a 9.45% expense ratio, 15.70% 5-year return, 503 holdings, 1.00 beta, and 1.20% yield. SCHD has 0.06% expense ratio, 12.10% 5-year return, 103 holdings, 0.82 beta, and 3.40% yield.
View data table
| Metric | SPY | SCHD |
|---|---|---|
| Expense Ratio | 9.45% | 0.06% |
| 5-Year Return | 15.70% | 12.10% |
| Holdings | 503 | 103 |
| Beta | 1.00 | 0.82 |
| Dividend Yield | 1.20% | 3.40% |
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Holdings Overlap Analysis
0%
Holdings Overlap
SPY and SCHD share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
SPY and SCHD share 0% of their top holdings (low overlap). SPY has 503 total holdings and SCHD has 103.
View data table
| Metric | SPY | SCHD |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 503 | 103 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
SPY
Fee cost: $39,143
SCHD
Fee cost: $515
Over 20 years, the fee difference amounts to $38,628 on a $10,000 investment. SCHD saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, SPY (9.45% fee) grows to $7,467 while SCHD (0.06% fee) grows to $46,094. The fee difference costs $38,627.
View data table
| Year | SPY Value | SCHD Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $9,296 | $14,653 |
| 10 | $8,641 | $21,470 |
| 15 | $8,032 | $31,458 |
| 20 | $7,467 | $46,094 |
Which One Should a Beginner Choose?
Choose SPY if: You want active traders who need high liquidity and tight spreads, options traders looking for the deepest options market available, institutional investors executing large block trades. It's managed by State Street Global Advisors with an expense ratio of 9.45%.
Choose SCHD if: You want income-focused investors who want a reliable and growing dividend stream, conservative investors who prefer lower volatility with quality companies, retirees or pre-retirees building a dividend income portfolio. It's managed by Charles Schwab with an expense ratio of 0.06%.
Can You Own Both SPY and SCHD?
Absolutely! With only 0% overlap, SPY and SCHD complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy SPY or SCHD?▾
Both ETFs score equally well for beginners (9/10). Your choice depends on your specific investment goals. However, both are solid options. SPY is best for investors who want active traders who need high liquidity and tight spreads, while SCHD is better suited for income-focused investors who want a reliable and growing dividend stream.
What is the difference between SPY and SCHD?▾
SPY (SPDR S&P 500 ETF Trust) tracks u.s. large-cap blend investments with 503 holdings and a 9.45% expense ratio. SCHD (Schwab U.S. Dividend Equity ETF) focuses on u.s. large-cap dividend with 103 holdings at 0.06%. Their top holdings overlap by 0%.
Can I own both SPY and SCHD?▾
Yes! With only 0% holdings overlap, SPY and SCHD complement each other well. Owning both gives you broader diversification.