SCHC vs. SPY

Last updated Jun 3, 2026

SCHC (Schwab International Small-Cap Equity ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - SCHC is a Foreign Small & Mid Cap Equities fund tracking the FTSE Custom Developed Small Cap ex-US Liquid Net of Tax (Lux), while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, SCHC returned 8.15%/yr vs 15.57%/yr for SPY. A 0.78 correlation means they provide meaningful diversification when combined. SCHC charges 0.11%/yr vs 0.09%/yr for SPY.

Performance

SCHC vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab International Small-Cap Equity ETF (SCHC) 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, SCHC achieves a 10.89% return, which is significantly lower than SPY's 11.69% return. Over the past 10 years, SCHC has underperformed SPY with an annualized return of 8.15%, while SPY has yielded a comparatively higher 15.57% annualized return.

SCHC

• 1D: 0.32%
• 1M: 0.90%
• YTD: 10.89%
• 6M: 13.94%
• 1Y: 28.32%
• 3Y*: 18.46%
• 5Y*: 6.68%
• 10Y*: 8.15%

SPY

• 1D: 0.14%
• 1M: 5.40%
• YTD: 11.69%
• 6M: 12.09%
• 1Y: 29.62%
• 3Y*: 22.64%
• 5Y*: 14.20%
• 10Y*: 15.57%

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

SCHC vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHC Schwab International Small-Cap Equity ETF	10.89%	37.59%	1.97%	14.36%	-21.74%	12.02%	10.48%	23.10%	-18.60%	29.42%
SPY State Street SPDR S&P 500 ETF	11.69%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between SCHC and SPY is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jan 15, 2010	0.78

The correlation between SCHC and SPY has been stable across timeframes, ranging from 0.70 to 0.78 - a consistent structural relationship.

SCHC vs. SPY - Sectors Allocation Comparison

Sectors	SCHC	SPY
Industrials	22.4%	7.8%
Basic Materials	13.7%	1.8%
Financial Services	12.6%	11.8%
Consumer Cyclical	10.0%	10.3%
Technology	9.2%	35.9%
Real Estate	8.6%	1.9%
Energy	6.5%	3.6%
Healthcare	6.5%	8.4%
Consumer Defensive	4.1%	4.8%
Communication Services	3.2%	11.3%
Utilities	3.2%	2.4%

Return for Risk

SCHC vs. SPY — Risk / Return Rank

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

SCHC

SCHC Risk / Return Rank: 52
SCHC Sharpe Ratio Rank: 53
SCHC Sortino Ratio Rank: 52
SCHC Omega Ratio Rank: 53
SCHC Calmar Ratio Rank: 48
SCHC Martin Ratio Rank: 53

SPY

SPY Risk / Return Rank: 75
SPY Sharpe Ratio Rank: 77
SPY Sortino Ratio Rank: 75
SPY Omega Ratio Rank: 76
SPY Calmar Ratio Rank: 68
SPY Martin Ratio Rank: 80

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.

SCHC vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab International Small-Cap Equity ETF (SCHC) 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.

	SCHC	SPY	Difference
Sharpe ratio Return per unit of total volatility	1.84	2.52	-0.68
Sortino ratio Return per unit of downside risk	2.55	3.42	-0.87
Omega ratio Gain probability vs. loss probability	1.33	1.46	-0.13
Calmar ratio Return relative to maximum drawdown	2.43	3.42	-0.99
Martin ratio Return relative to average drawdown	9.27	15.93	-6.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHC vs. SPY - Sharpe Ratio Comparison

The current SCHC Sharpe Ratio is 1.84, which is comparable to the SPY Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of SCHC 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

	SCHC	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.84	2.52	-0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.38	0.84	-0.45
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.87	-0.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.59	-0.18

Drawdowns

SCHC vs. SPY - Drawdown Comparison

The maximum SCHC drawdown since its inception was -43.94%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SCHC and SPY.

Drawdown Indicators

	SCHC	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-43.94%	-55.19%	+11.25%
Max Drawdown (1Y) Largest decline over 1 year	-12.48%	-8.88%	-3.60%
Max Drawdown (3Y) Largest decline over 3 years	-15.52%	-18.76%	+3.24%
Max Drawdown (5Y) Largest decline over 5 years	-36.48%	-24.50%	-11.98%
Max Drawdown (10Y) Largest decline over 10 years	-43.94%	-33.72%	-10.22%
Current Drawdown Current decline from peak	-2.04%	0.00%	-2.04%
Average Drawdown Average peak-to-trough decline	-10.06%	-9.05%	-1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	1.91%	+1.36%

Volatility

SCHC vs. SPY - Volatility Comparison

Schwab International Small-Cap Equity ETF (SCHC) has a higher volatility of 4.97% compared to State Street SPDR S&P 500 ETF (SPY) at 2.75%. This indicates that SCHC'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

	SCHC	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.97%	2.75%	+2.22%
Volatility (6M) Calculated over the trailing 6-month period	13.00%	8.89%	+4.11%
Volatility (1Y) Calculated over the trailing 1-year period	15.50%	11.81%	+3.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.50%	17.05%	+0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.99%	17.94%	+0.05%

SCHC vs. SPY - Expense Ratio Comparison

SCHC has a 0.11% expense ratio, which is higher than SPY's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHC vs. SPY - Dividend Comparison

SCHC's dividend yield for the trailing twelve months is around 3.30%, more than SPY's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHC Schwab International Small-Cap Equity ETF	3.30%	3.66%	3.72%	2.94%	1.78%	3.02%	1.62%	3.23%	2.51%	2.73%	2.01%	2.34%
SPY State Street SPDR S&P 500 ETF	0.97%	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 SCHC and SPY in my portfolio?

SCHC and SPY have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHC or SPY?

SCHC has higher volatility (4.97%) compared to SPY (2.75%). In terms of maximum drawdown, SCHC dropped -43.94% vs SPY's -55.19%.

Which ETF is better, SCHC or SPY?

On 10-year performance, SPY leads with 15.57% vs 8.15% for SCHC. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 2.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHC or SPY?

Over the 10-year period, SPY has performed better with a 15.57% return vs 8.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHC or SPY?

SPY is cheaper with a 0.09% expense ratio, compared with 0.11% for SCHC.

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

SCHC has the higher dividend yield at 3.30%, compared with 0.97% for SPY.

What is the main difference between SCHC and SPY?

SCHC is categorized as Foreign Small & Mid Cap Equities, while SPY is S&P 500. SCHC tracks FTSE Custom Developed Small Cap ex-US Liquid Net of Tax (Lux), while SPY tracks S&P 500 Index. They also come from different issuers: Charles Schwab and State Street. Their fees differ too: 0.11% for SCHC and 0.09% for SPY.

Which has better risk-adjusted returns?

SPY currently has the higher Sharpe Ratio (2.52 vs 1.84), 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.