🤝 BFF Take
SCHX Wins on Cost — SPY Only Makes Sense for Options Traders
SPY (SPDR S&P 500 ETF Trust) and SCHX (Schwab US Large-Cap ETF) are both US equity ETFs but with meaningful differences. SPY tracks only the S&P 500's 503 stocks at 0.0945% — a high fee kept intact because institutional traders need its unmatched options market liquidity. SCHX tracks the Dow Jones US Large-Cap Total Stock Market Index with about 750 stocks at 0.03% — covering more of the US market and at less than a third the cost. For Schwab investors building a long-term portfolio, SCHX provides broader diversification at a much lower fee. The catch: SCHX has essentially no options market compared to SPY. For anyone not trading options on broad US equities, SCHX (or VOO/VTI at 0.03%) is clearly the better long-term choice.
📋 Quick Takeaways
💰SCHX costs 0.03% vs SPY's 0.0945% — SCHX is more than 3x cheaper for broader US exposure
📊SPY holds 503 S&P 500 stocks; SCHX holds ~750 large-cap US stocks including some mid-cap names
🎯SPY is the dominant vehicle for US equity options — the only reason to pay its premium over SCHX or VOO
📊 Data-Based Take: SCHX has the lower fee
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.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
SPY
SPDR S&P 500 ETF Trust
SCHX
Schwab US Large-Cap ETF
📋 SPY vs SCHX — Key Facts Side by Side
| Metric |
SPY |
SCHX |
| Fund Name |
SPDR S&P 500 ETF Trust |
Schwab US Large-Cap ETF |
| Issuer |
State Street |
Schwab |
| Tracks Index |
S&P 500 |
Dow Jones US Large-Cap Total Stock Market |
| Expense Ratio |
0.09% |
0.03% ✓ |
| Cost per $10K/yr |
$9.45 |
$3.00 |
| AUM |
$702B |
$22B |
| Holdings |
503 |
750 |
| Inception |
1993 |
2009 |
| 1-Year Return |
+17.30% |
+17.20% |
| 3-Year Return |
+10.20% |
+10.10% |
| 5-Year Return |
+14.60% |
+14.40% |
| Avg Bid-Ask Spread |
0.00% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 SPY vs SCHX — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy SPY or SCHX?
Choose if...
SPY
- You want focused large-cap US stock exposure via S&P 500
- You already use State Street and prefer staying within their fund family
Choose if...
SCHX
- You want the lowest fees — saves ~$6/yr per $10K vs SPY
- You want broader diversification (750 holdings vs 503)
- You want focused large-cap US stock exposure via Dow Jones US Large-Cap Total Stock Market
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❓ SPY vs SCHX — Frequently Asked Questions
What is the difference between SPY and SCHX?
SPY tracks the S&P 500 (503 stocks, large-cap only) at 0.0945%. SCHX tracks the Dow Jones US Large-Cap Total Stock Market Index (~750 stocks, including some mid-cap names) at 0.03%. SCHX is broader and significantly cheaper. The main reason to choose SPY is its dominance in the equity options market — for options traders, SPY's liquidity is unmatched. For buy-and-hold investors, SCHX or VOO are the rational alternatives.
How does SCHX compare to VOO?
VOO (Vanguard S&P 500) and SCHX (Schwab US Large-Cap) both charge 0.03%. VOO tracks the S&P 500 (503 stocks); SCHX tracks a broader large-cap index (~750 stocks). VOO has $610B in assets vs SCHX's $22B — far more liquidity. For Schwab investors who want a broader large-cap index, SCHX makes sense. For everyone else, VOO's massive scale and S&P 500 precision may be preferred.
Does SCHX include mid-cap stocks?
SCHX holds the Dow Jones US Large-Cap Total Stock Market universe, which includes companies somewhat smaller than the strict S&P 500 cutoff. Approximately 200-250 of its ~750 holdings are in the mid-cap range by market cap. This gives SCHX slightly more exposure to smaller growth companies than VOO or SPY, which could be an advantage in periods when mid-caps outperform large-caps.
Is it worth switching from SPY to SCHX?
In a tax-advantaged account (IRA, 401k), switching from SPY to SCHX (or VOO) is a no-brainer if you're a long-term investor — you'll save 6.45 basis points annually with no tax consequences. In a taxable account, calculate the tax bill from selling SPY and compare it to the fee savings over your expected holding period. On large, long-held SPY positions with significant capital gains, switching may not be worth the immediate tax cost.
Can SCHX and SCHB be used together?
SCHX covers large-cap US stocks; SCHB covers the entire US market (large, mid, small, micro-cap). Holding both would overweight large-cap US stocks relative to the market. If you want full US market coverage at Schwab's low costs, SCHB alone is sufficient — it includes everything in SCHX plus additional exposure to smaller companies.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.