SPY vs SCHB: Large-Cap Index vs the Whole US Market
SPY owns the 503 largest US companies. SCHB owns roughly 2,500 across large, mid, and small caps, and charges one-third the fee. The decision is scope and cost.
SPY and SCHB are both US stock index ETFs, but they cover different slices of the market at very different costs. SPY (SPDR S&P 500 ETF) tracks the S&P 500, the 503 largest US companies, and charges 0.0945%. It is the most-traded fund in the world, which matters for active traders and large options strategies. SCHB (Schwab US Broad Market ETF) tracks roughly 2,500 US stocks across large, mid, and small caps, and charges 0.03%, about one-third of SPY. For a long-term buy-and-hold investor, SCHB gives broader diversification at a lower cost, and its total-market scope behaves very close to the S&P 500 over time because large caps dominate both. SPY makes sense if you trade frequently or need deep intraday liquidity. For everyone building a core position to hold, SCHB is the more cost-efficient choice. Schwab account holders also typically trade it commission-free.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 SPY vs SCHB — Key Facts Side by Side
| Metric | SPY | SCHB |
|---|---|---|
| Fund Name | State Street SPDR S&P 500 ETF Trust | Schwab U.S. Broad Market ETF |
| Issuer | State Street | Schwab |
| Tracks Index | S&P 500 | Dow Jones US Broad Stock Market |
| Expense Ratio | 0.09% | 0.03% ✓ |
| Cost per $10K/yr | $9.45 | $3.00 |
| AUM | $781.2B | $43.2B |
| Holdings | 503 | 2,500 |
| Inception | 1993 | 2009 |
| 1-Year Return | +20.19% | +20.20% |
| 3-Year Return | +20.37% | +20.05% |
| 5-Year Return | +13.19% | +12.28% |
| Dividend Yield | 1.01% | 1.04% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.01% | 0.01% |
Expense ratio, AUM, and returns updated Jul 17, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 SPY vs SCHB — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want focused large-cap US stock exposure via S&P 500
- already use State Street and prefer staying within one fund family
- want the lowest fees: saves ~$6/yr per $10K vs SPY
- want broader diversification (2,500 holdings vs 503)
- want the entire US stock market: large, mid, and small cap in one fund
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
⚙️ Want the Full Interactive Comparison?
Side-by-side holdings overlap, sector breakdown, and live performance tabs, all in one place.
Run Full SPY vs SCHB Comparison → Free · No signup · Instant resultsGet smarter about ETFs — one concept a week, free forever
The ETF BFF newsletter breaks down one ETF concept per week — clear, jargon-free, and actually useful.
Reviewed by a CFA® charterholder · No spam · Unsubscribe anytime
❓ SPY vs SCHB — Frequently Asked Questions
New to ETF investing? See answers to the most common ETF questions →