SPY vs SCHX: The S&P 500 Giant vs a Cheaper US Market Alternative
SPY is the most-traded ETF in the world. SCHX is 3x cheaper and covers more US companies. For long-term investors, SCHX is worth serious consideration.
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.
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.
Both funds trade commission-free at every major brokerage. Where to buy them →
📋 SPY vs SCHX: Key Facts Side by Side
| Metric | SPY | SCHX |
|---|---|---|
| Fund Name | State Street SPDR S&P 500 ETF Trust | Schwab U.S. 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 | $809.2B | $73.9B |
| Holdings | 503 | 750 |
| Inception | 1993 | 2009 |
| 1-Year Return | +17.50% | +16.24% |
| 3-Year Return | +22.99% | +22.96% |
| 5-Year Return | +13.92% | +13.33% |
| Dividend Yield | 0.99% | 1.04% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.01% |
AUM and returns updated Oct 14, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 SPY vs SCHX: 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 (750 holdings vs 503)
- want focused large-cap US stock exposure via Dow Jones US Large-Cap Total Stock Market
💰 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.
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