SCHA vs. SPY

Last updated Jun 4, 2026

SCHA (Schwab U.S. Small-Cap ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SCHA is a Small Cap Growth Equities fund tracking the Dow Jones U.S. Small-Cap Total Stock Market Total Return Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, SCHA returned 11.13%/yr vs 15.49%/yr for SPY. Their correlation of 0.86 suggests significant overlap in exposure. SCHA charges 0.04%/yr vs 0.09%/yr for SPY.

Performance

SCHA vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Small-Cap ETF (SCHA) 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, SCHA achieves a 19.79% return, which is significantly higher than SPY's 10.91% return. Over the past 10 years, SCHA has underperformed SPY with an annualized return of 11.13%, while SPY has yielded a comparatively higher 15.49% annualized return.

SCHA

• 1D: -0.58%
• 1M: 4.77%
• YTD: 19.79%
• 6M: 19.32%
• 1Y: 40.27%
• 3Y*: 18.92%
• 5Y*: 7.13%
• 10Y*: 11.13%

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

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

SCHA vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHA Schwab U.S. Small-Cap ETF	19.79%	11.60%	11.16%	18.46%	-19.81%	16.45%	19.34%	26.50%	-11.79%	14.94%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between SCHA and SPY is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Nov 4, 2009	0.86

The correlation between SCHA and SPY has been stable across timeframes, ranging from 0.78 to 0.86 - a consistent structural relationship.

SCHA vs. SPY - Sectors Allocation Comparison

Sectors	SCHA	SPY
Technology	23.3%	35.9%
Financial Services	15.7%	11.8%
Industrials	15.4%	7.8%
Healthcare	13.5%	8.4%
Consumer Cyclical	9.0%	10.3%
Real Estate	6.0%	1.9%
Energy	5.5%	3.6%
Basic Materials	4.2%	1.8%
Consumer Defensive	2.6%	4.8%
Communication Services	2.4%	11.3%
Utilities	2.3%	2.4%

Return for Risk

SCHA vs. SPY — Risk / Return Rank

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

SCHA

SCHA Risk / Return Rank: 71
SCHA Sharpe Ratio Rank: 66
SCHA Sortino Ratio Rank: 67
SCHA Omega Ratio Rank: 60
SCHA Calmar Ratio Rank: 81
SCHA Martin Ratio Rank: 79

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

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.

SCHA vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Small-Cap ETF (SCHA) 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.

	SCHA	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.25	2.38	-0.12
Sortino ratio: Return per unit of downside risk	3.16	3.24	-0.08
Omega ratio: Gain probability vs. loss probability	1.38	1.43	-0.05
Calmar ratio: Return relative to maximum drawdown	4.26	3.16	+1.09
Martin ratio: Return relative to average drawdown	15.66	14.72	+0.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHA vs. SPY - Sharpe Ratio Comparison

The current SCHA Sharpe Ratio is 2.25, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of SCHA 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.

Sharpe Ratios by Period

	SCHA	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.25	2.38	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.82	-0.49
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.87	-0.37
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.59	-0.01

Drawdowns

SCHA vs. SPY - Drawdown Comparison

The maximum SCHA drawdown since its inception was -42.41%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SCHA and SPY.

Drawdown Indicators

	SCHA	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-42.41%	-55.19%	+12.78%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-8.88%	-0.62%
Max Drawdown (3Y) Largest decline over 3 years	-27.29%	-18.76%	-8.53%
Max Drawdown (5Y) Largest decline over 5 years	-30.79%	-24.50%	-6.29%
Max Drawdown (10Y) Largest decline over 10 years	-42.41%	-33.72%	-8.69%
Current Drawdown Current decline from peak	-0.58%	-0.70%	+0.12%
Average Drawdown Average peak-to-trough decline	-7.58%	-9.05%	+1.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.58%	1.91%	+0.67%

Volatility

SCHA vs. SPY - Volatility Comparison

Schwab U.S. Small-Cap ETF (SCHA) has a higher volatility of 5.08% compared to State Street SPDR S&P 500 ETF (SPY) at 2.84%. This indicates that SCHA's price experiences larger fluctuations and is considered to be riskier than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHA	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.08%	2.84%	+2.24%
Volatility (6M) Calculated over the trailing 6-month period	12.83%	8.90%	+3.93%
Volatility (1Y) Calculated over the trailing 1-year period	18.01%	11.83%	+6.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.93%	17.05%	+4.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.71%	17.94%	+4.77%

SCHA vs. SPY - Expense Ratio Comparison

SCHA has a 0.04% expense ratio, which is lower than SPY's 0.09% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHA vs. SPY - Dividend Comparison

SCHA's dividend yield for the trailing twelve months is around 1.00%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHA Schwab U.S. Small-Cap ETF	1.00%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%
SPY State Street SPDR S&P 500 ETF	0.98%	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 SCHA and SPY in my portfolio?

SCHA and SPY have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHA or SPY?

SCHA has higher volatility (5.08%) compared to SPY (2.84%). In terms of maximum drawdown, SCHA dropped -42.41% vs SPY's -55.19%.

Which ETF is better, SCHA or SPY?

On 10-year performance, SPY leads with 15.49% vs 11.13% for SCHA. On fees, SCHA is cheaper at 0.04% per year. On volatility, SPY has been the lower-risk option at 2.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHA or SPY?

Over the 10-year period, SPY has performed better with a 15.49% return vs 11.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHA or SPY?

SCHA is cheaper with a 0.04% expense ratio, compared with 0.09% for SPY.

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

SCHA has the higher dividend yield at 1.00%, compared with 0.98% for SPY.

What is the main difference between SCHA and SPY?

SCHA is categorized as Small Cap Growth Equities, while SPY is S&P 500. SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Total Return Index, while SPY tracks S&P 500 Index. They also come from different issuers: Charles Schwab and State Street. Their fees differ too: 0.04% for SCHA and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.38 vs 2.25), 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.