SAEF vs. SPY

Last updated Jun 24, 2026

SAEF (Schwab Ariel ESG ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SAEF is a Mid Cap Blend Equities fund actively managed by Charles Schwab, while SPY is a S&P 500 fund tracking the S&P 500 Index. SAEF is actively managed, while SPY is passively managed. Over the past 3 years, SAEF returned 13.65%/yr vs 20.68%/yr for SPY. Their correlation of 0.82 suggests significant overlap in exposure. SAEF charges 0.59%/yr vs 0.09%/yr for SPY.

Performance

SAEF vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Ariel ESG ETF (SAEF) and State Street SPDR S&P 500 ETF (SPY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SAEF achieves a 12.39% return, which is significantly higher than SPY's 8.15% return.

SAEF

• 1D: -1.03%
• 1M: 4.87%
• YTD: 12.39%
• 6M: 10.95%
• 1Y: 22.62%
• 3Y*: 13.65%
• 5Y*: —
• 10Y*: —

SPY

• 1D: -1.45%
• 1M: -1.36%
• YTD: 8.15%
• 6M: 7.20%
• 1Y: 23.59%
• 3Y*: 20.68%
• 5Y*: 13.05%
• 10Y*: 15.53%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SAEF vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SAEF Schwab Ariel ESG ETF	12.39%	2.31%	16.14%	17.87%	-18.29%	-2.31%
SPY State Street SPDR S&P 500 ETF	8.15%	17.72%	24.89%	26.18%	-18.18%	1.97%

Correlation

The correlation between SAEF and SPY is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (All Time) Calculated using the full available price history since Nov 16, 2021	0.82

The correlation between SAEF and SPY shifts across timeframes, from 0.70 (1 year) to 0.82 (all time), reflecting how their relationship changes across market environments.

SAEF vs. SPY - Sectors Allocation Comparison

Sectors	SAEF	SPY
Consumer Cyclical	22.6%	9.9%
Industrials	20.3%	7.8%
Financial Services	15.0%	11.1%
Technology	14.7%	39.0%
Healthcare	10.0%	8.3%
Communication Services	7.5%	10.6%
Real Estate	4.5%	1.8%
Consumer Defensive	3.3%	4.5%
Basic Materials	2.3%	1.7%
Energy	-	3.1%
Utilities	-	2.1%

Return for Risk

SAEF vs. SPY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SAEF

SAEF Risk / Return Rank: 36
SAEF Sharpe Ratio Rank: 37
SAEF Sortino Ratio Rank: 37
SAEF Omega Ratio Rank: 33
SAEF Calmar Ratio Rank: 38
SAEF Martin Ratio Rank: 35

SPY

SPY Risk / Return Rank: 59
SPY Sharpe Ratio Rank: 58
SPY Sortino Ratio Rank: 56
SPY Omega Ratio Rank: 57
SPY Calmar Ratio Rank: 56
SPY Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SAEF vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Ariel ESG ETF (SAEF) and State Street SPDR S&P 500 ETF (SPY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SAEF	SPY	Difference
Sharpe ratio: Return per unit of total volatility	1.21	1.90	-0.69
Sortino ratio: Return per unit of downside risk	1.82	2.58	-0.76
Omega ratio: Gain probability vs. loss probability	1.21	1.34	-0.13
Calmar ratio: Return relative to maximum drawdown	1.77	2.67	-0.89
Martin ratio: Return relative to average drawdown	4.80	11.92	-7.12

SAEF vs. SPY - Sharpe Ratio Comparison

The current SAEF Sharpe Ratio is 1.21, which is lower than the SPY Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of SAEF and SPY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SAEF vs. SPY - Drawdown Comparison

The maximum SAEF drawdown since its inception was -28.05%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SAEF and SPY.

Drawdown Indicators

	SAEF	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-28.05%	-55.19%	+27.14%
Max Drawdown (1Y) Largest decline over 1 year	-12.81%	-8.88%	-3.93%
Max Drawdown (3Y) Largest decline over 3 years	-27.40%	-18.76%	-8.64%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.72%	—
Current Drawdown Current decline from peak	-1.03%	-3.17%	+2.14%
Average Drawdown Average peak-to-trough decline	-10.27%	-9.04%	-1.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.72%	1.98%	+2.74%

Volatility

SAEF vs. SPY - Volatility Comparison

Schwab Ariel ESG ETF (SAEF) and State Street SPDR S&P 500 ETF (SPY) have volatilities of 5.09% and 4.87%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SAEF	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.09%	4.87%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	14.29%	9.85%	+4.44%
Volatility (1Y) Calculated over the trailing 1-year period	18.94%	12.50%	+6.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.37%	17.15%	+4.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.37%	17.95%	+3.42%

SAEF vs. SPY - Expense Ratio Comparison

SAEF has a 0.59% expense ratio, which is higher than SPY's 0.09% expense ratio.

Dividends

SAEF vs. SPY - Dividend Comparison

SAEF's dividend yield for the trailing twelve months is around 0.33%, less than SPY's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SAEF Schwab Ariel ESG ETF	0.33%	0.38%	0.46%	0.46%	0.61%	0.09%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPY State Street SPDR S&P 500 ETF	1.03%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%

Frequently Asked Questions

Can I hold both SAEF and SPY in my portfolio?

SAEF and SPY have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SAEF or SPY?

SAEF has higher volatility (5.09%) compared to SPY (4.87%). In terms of maximum drawdown, SAEF dropped -28.05% vs SPY's -55.19%.

Which ETF is better, SAEF or SPY?

On 3-year performance, SPY leads with 20.68% vs 13.65% for SAEF. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SAEF or SPY?

Over the 3-year period, SPY has performed better with a 20.68% return vs 13.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SAEF or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.59% for SAEF.

Which ETF pays a higher dividend yield, SAEF or SPY?

SPY has the higher dividend yield at 1.03%, compared with 0.33% for SAEF.

What is the main difference between SAEF and SPY?

SAEF is categorized as Mid Cap Blend Equities, while SPY is S&P 500. They also come from different issuers: Charles Schwab and State Street. Their fees differ too: 0.59% for SAEF and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (1.90 vs 1.21), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.