SWTSX vs. SPY

Last updated Jun 4, 2026

SWTSX (Schwab Total Stock Market Index Fund) and SPY (State Street SPDR S&P 500 ETF) are both funds - SWTSX is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Total Stock Market Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, SWTSX returned 15.07%/yr vs 15.49%/yr for SPY. With a 0.98 correlation, they move nearly in lockstep. SWTSX charges 0.03%/yr vs 0.09%/yr for SPY.

Performance

SWTSX vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Total Stock Market Index Fund (SWTSX) 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, SWTSX achieves a 12.02% return, which is significantly higher than SPY's 10.91% return. Both investments have delivered pretty close results over the past 10 years, with SWTSX having a 15.07% annualized return and SPY not far ahead at 15.49%.

SWTSX

• 1D: 0.22%
• 1M: 5.76%
• YTD: 12.02%
• 6M: 11.94%
• 1Y: 29.06%
• 3Y*: 22.36%
• 5Y*: 13.04%
• 10Y*: 15.07%

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)

SWTSX vs. SPY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SWTSX Schwab Total Stock Market Index Fund	12.02%	17.04%	23.84%	26.05%	-19.54%	25.65%	20.71%	30.90%	-5.35%	21.08%
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 SWTSX and SPY is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jan 4, 2000	0.98

The correlation between SWTSX and SPY has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

SWTSX vs. SPY - Sectors Allocation Comparison

Sectors	SWTSX	SPY
Technology	33.8%	35.9%
Financial Services	12.1%	11.8%
Communication Services	10.3%	11.3%
Consumer Cyclical	10.1%	10.3%
Industrials	9.6%	7.8%
Healthcare	9.1%	8.4%
Consumer Defensive	4.7%	4.8%
Energy	3.7%	3.6%
Real Estate	2.4%	1.9%
Utilities	2.3%	2.4%
Basic Materials	2.1%	1.8%

Return for Risk

SWTSX vs. SPY — Risk / Return Rank

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

SWTSX

SWTSX Risk / Return Rank: 71
SWTSX Sharpe Ratio Rank: 71
SWTSX Sortino Ratio Rank: 63
SWTSX Omega Ratio Rank: 63
SWTSX Calmar Ratio Rank: 75
SWTSX Martin Ratio Rank: 82

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.

SWTSX vs. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Total Stock Market Index Fund (SWTSX) 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.

	SWTSX	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.38	+0.08
Sortino ratio: Return per unit of downside risk	3.33	3.24	+0.09
Omega ratio: Gain probability vs. loss probability	1.44	1.43	+0.01
Calmar ratio: Return relative to maximum drawdown	3.38	3.16	+0.22
Martin ratio: Return relative to average drawdown	15.52	14.72	+0.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SWTSX vs. SPY - Sharpe Ratio Comparison

The current SWTSX Sharpe Ratio is 2.45, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of SWTSX 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

	SWTSX	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.38	+0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.82	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.87	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.59	-0.15

Drawdowns

SWTSX vs. SPY - Drawdown Comparison

The maximum SWTSX drawdown since its inception was -54.60%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for SWTSX and SPY.

Drawdown Indicators

	SWTSX	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-54.60%	-55.19%	+0.59%
Max Drawdown (1Y) Largest decline over 1 year	-8.88%	-8.88%	0.00%
Max Drawdown (3Y) Largest decline over 3 years	-19.43%	-18.76%	-0.67%
Max Drawdown (5Y) Largest decline over 5 years	-25.40%	-24.50%	-0.90%
Max Drawdown (10Y) Largest decline over 10 years	-35.01%	-33.72%	-1.29%
Current Drawdown Current decline from peak	0.00%	-0.70%	+0.70%
Average Drawdown Average peak-to-trough decline	-10.57%	-9.05%	-1.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.93%	1.91%	+0.02%

Volatility

SWTSX vs. SPY - Volatility Comparison

Schwab Total Stock Market Index Fund (SWTSX) and State Street SPDR S&P 500 ETF (SPY) have volatilities of 2.96% and 2.84%, 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

	SWTSX	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.96%	2.84%	+0.12%
Volatility (6M) Calculated over the trailing 6-month period	9.21%	8.90%	+0.31%
Volatility (1Y) Calculated over the trailing 1-year period	12.26%	11.83%	+0.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.44%	17.05%	+0.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.61%	17.94%	+0.67%

SWTSX vs. SPY - Expense Ratio Comparison

SWTSX has a 0.03% 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

SWTSX vs. SPY - Dividend Comparison

SWTSX's dividend yield for the trailing twelve months is around 0.98%, which matches SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SWTSX Schwab Total Stock Market Index Fund	0.98%	1.10%	1.24%	1.41%	1.62%	1.46%	1.63%	1.92%	2.58%	1.83%	2.32%	2.79%

Frequently Asked Questions

Can I hold both SWTSX and SPY in my portfolio?

With a correlation of 0.99, SWTSX and SPY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SWTSX or SPY?

SWTSX has higher volatility (2.96%) compared to SPY (2.84%). In terms of maximum drawdown, SWTSX dropped -54.60% vs SPY's -55.19%.

Which has better risk-adjusted returns?

SWTSX currently has the higher Sharpe Ratio (2.45 vs 2.38), 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.