SPY vs SWTSX
State Street SPDR S&P 500 ETF Trust vs Schwab Total Stock Market Index Fund
Which is better, SPY or SWTSX?
Each has led over a different period.
SWTSX has a lower expense ratio. SPY led over 3Y, 5Y and the full window, SWTSX over 1Y. SWTSX is less concentrated, with 33.5% of the fund in its ten largest positions against 38.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SPY | SWTSX |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $823.2B | $45.9B |
| Dividend Yield | 0.99% | 0.98% |
| Holdings | 1,515 | 2,987 |
| YTD Price Return | +12.65% | +14.36%Best |
| 1Y Price Return | +16.21% | +16.63%Best |
| 3Y Price Return (annualized) | +20.89%Best | -36.85% |
| 5Y Price Return (annualized) | +11.71%Best | -25.07% |
| Volatility (annualized) | 15.6%Best | 41.5% |
| Max Drawdown | -25.4%Best | -86.0% |
| $10,000 over 5 years | $17,396Best | $2,362 |
| Top 10 Weight | 38.2% | 33.5%Best |
| Fund Family | State Street Investment Management | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jan 22, 1993 | Jun 1, 1999 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for SWTSX. Both funds are measured the same way, so the comparison holds. SPY yields 0.99% and SWTSX 0.98% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
SPY vs SWTSX growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
SPY vs SWTSX Performance
State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management and Schwab Total Stock Market Index Fund (SWTSX) is a mutual fund from Charles Schwab Asset Management. Over the past year SPY returned +16.21% while SWTSX returned +16.63%. Year to date, SPY is up 12.65% versus a gain of 14.36% for SWTSX.
Over three years, SPY compounded at +20.89% per year against -36.85% for SWTSX; over five years the annualized figures are +11.71% and -25.07% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWTSX has been the more volatile fund, with annualized monthly volatility of 41.5% compared with 15.6% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -25.4% for SPY and -86.0% for SWTSX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.33. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SPY charges 0.09% per year while SWTSX charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, SPY currently yields 0.99% against 0.98% for SWTSX.
Structure and taxes
SWTSX is a mutual fund and SPY is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
98.4% of SPY's money is in holdings SWTSX also owns. 87.3% of SWTSX's money is in holdings SPY also owns.
Most of SPY is already inside SWTSX. Owning both mostly buys the same companies twice.
489 positions in common, counted across the 504 positions we hold weights for in SPY and 2,868 in SWTSX, against full books of 1,515 and 2,987.
What only one of them owns
Our book lists 651 positions for SWTSX that do not appear in our book for SPY (9.7% of the fund), and 9 for SPY that do not appear in SWTSX (0.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SPY | Weight in SWTSX | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 7.78% | 7.16% | 0.62% |
| AAPLApple, Inc | 7.45% | 6.23% | 1.22% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.71% | 5.05% | 0.66% |
| AMZNAmazon.Com Inc | 3.78% | 3.40% | 0.38% |
| GOOGLAlphabet Inc Cap Stk Cl A | 3.12% | 2.66% | 0.46% |
| AVGOBroadcom Inc | 2.48% | 2.35% | 0.13% |
| GOOGAlphabet Inc Class C | 2.49% | 2.12% | 0.37% |
| METAMeta Platform Inc | 2.22% | 1.68% | 0.54% |
| MUMicron Technology, Inc. | 1.59% | 1.45% | 0.14% |
| TSLATesla Motors Inc | 1.54% | 1.39% | 0.15% |
98.4% of SPY is already inside SWTSX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SPY or SWTSX?
SPY has an expense ratio of 0.09% while SWTSX charges 0.03%. SWTSX is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, SPY or SWTSX?
Over the past year SPY returned +16.21% vs +16.63% for SWTSX, so SWTSX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SPY or SWTSX?
SWTSX has been the more volatile fund at 41.5% annualized versus 15.6% for SPY. Worst drawdown: SPY -25.4% vs SWTSX -86.0%.
Should I hold both SPY and SWTSX?
SPY and SWTSX have a monthly-return correlation of 0.33, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SPY and SWTSX?
98.4% of SPY's money is in holdings SWTSX also owns. 87.3% of SWTSX's is in holdings SPY also owns. They hold 489 positions in common, counted across the 504 positions we hold weights for in SPY and 2,868 in SWTSX.
Which pays a higher dividend, SPY or SWTSX?
SPY yields 0.99% while SWTSX yields 0.98%, so SPY currently pays the higher dividend yield.
Is it better to hold SWTSX or SPY in a taxable account?
SPY is an ETF and SWTSX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is SWTSX better than SPY?
SWTSX has a lower expense ratio. SPY led over 3Y, 5Y and the full window, SWTSX over 1Y. SWTSX is less concentrated, with 33.5% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.