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SPY vs. SCHB

SPDR S&P 500 ETF Trust

SPY
$--
vs

Schwab U.S. Broad Market ETF

SCHB
$--

Correlation

1.00
SPYSPDR S&P 500 ETF Trust
SCHBSchwab U.S. Broad Market ETF

What is SPY?

The SPDR S&P 500 ETF is a fund that before expenses generally corresponds to the price and yield performance of the S&P 500 Index.

Snapshot
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SPY SPDR S&P 500 ETF Trust
SCHB Schwab U.S. Broad Market ETF
Inception date
Jan 22 1993
Nov 03 2009
Expense ratio
0.09%
0.03%
SPY has a higher expense ratio than SCHB by 0.06%. This can indicate that it’s more expensive to invest in SPY than SCHB.
Type
US Equities
US Equities
SPY targets investing in US Equities, while SCHB targets investing in US Equities.
Fund owner
State Street (SPDR)
Schwab
SPY is managed by State Street (SPDR), while SCHB is managed by Schwab.
Volume (1m avg. daily)
$33,257,618,740
$35,304,784
Both SPY and SCHB are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$400,404,126,565
$22,376,795,984
SPY has more assets under management than SCHB by $378,027,330,581. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
S&P 500 Index
Dow Jones U.S. Broad Stock Market Index
SPY is based off of the S&P 500 Index, while SCHB is based off of the Dow Jones U.S. Broad Stock Market Index
Inverse/Leveraged
No
No
SPY and SCHB use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
SPY and SCHB both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
No
SPY and SCHB may offer dividends. The frequency and yield of the dividend may not be the same.
Prospectus
SPY may issue a K1, while SCHB does not. You can find non-K1 alternatives for SPY in its “Related ETFs” section.
SPY and SCHB’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toSPY

#DSS

Diversify with Sin Stocks

Category

Grow Your Portfolio, Diversification

Risk Rating

Aggressive

Automated Strategies
Related toSCHB

#WIR

When Inflation is Rising

Category

Living With High Inflation, Worried about Inflation?

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

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We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.