VOO vs SCHX: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VOO and SCHX

VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.

SCHX (Schwab U.S. Large-Cap ETF) is a u.s. large-cap blend fund managed by Schwab. SCHX tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, holding about 750 of America's biggest companies at a rock-bottom cost. It provides broad large-cap exposure similar to an S&P 500 fund but with a slightly wider net. Beginners who want simple, diversified ownership of America's largest corporations often start with SCHX.

The most notable differences are in fees (0.03% vs 0.03%), number of holdings (503 vs 750), and 5-year returns (15.80% vs 15.50%).

Holdings Overlap Analysis

VOO and SCHX share 100% of their top holdings. This means they are very similar funds — owning both would result in significant duplication in your portfolio. For most beginners, choosing one is sufficient.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

Which One Should a Beginner Choose?

Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.

Choose SCHX if: You want schwab brokerage customers seeking a zero-commission large-cap core holding, cost-conscious investors who want the cheapest u.s. large-cap exposure, beginners looking for a simple one-fund approach to large-cap u.s. stocks. It's managed by Schwab with an expense ratio of 0.03%.

Can You Own Both VOO and SCHX?

With 100% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.

Frequently Asked Questions