What is the fee difference between SCHD and SPY?

SCHD charges 0.06% a year and SPY charges 0.09%. On $10,000 invested that is about $6 a year for SCHD and $9 for SPY, a difference of roughly $3. Both are low-cost funds, so fees are a minor factor compared with the very different portfolios each one holds.

What index does each fund track?

SCHD tracks the Dow Jones U.S. Dividend 100, which screens US companies for at least ten consecutive years of dividend payments and then ranks them on financial quality and yield, holding about 100 stocks. SPY tracks the S&P 500, a broad benchmark of 505 large US companies weighted by market capitalization with no dividend requirement.

How much do the holdings of SCHD and SPY overlap?

None of the ten largest holdings are shared. SCHD's top ten are Merck, Abbott, Amgen, Coca-Cola, Chevron, ConocoPhillips, Procter & Gamble, Verizon, UnitedHealth and Home Depot, each between 3.7% and 4.9%. SPY's top ten are technology-heavy: NVIDIA, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta, Micron and Tesla. The two funds look very different at the top.

Which fund pays more in dividends?

SCHD has a dividend yield of 3.12%, more than three times the 0.99% yield of SPY. That is by design: SCHD's index selects established companies with long dividend records, while SPY includes many growth companies that pay little or nothing. Investors seeking regular income typically favor SCHD's profile.

Which fund suits which investment goal?

SCHD suits investors who want income and a portfolio of established, dividend-paying companies with a value tilt. SPY suits investors who want to own the broad US large-cap market as a core holding, including the growth-oriented technology companies that dominate its top ten. They serve different goals rather than competing directly.

How do SCHD and SPY compare on size and liquidity?

SPY is much larger, with about $785 billion in net assets, compared with about $112.8 billion for SCHD. Both are heavily traded on US exchanges, and SCHD's size makes it one of the largest dividend ETFs available, so retail investors can buy and sell either without difficulty.

Which fund is more concentrated?

SPY is more concentrated at the top: NVIDIA alone is 8.1% and Apple 7.5%, and the top ten are mostly technology. SCHD spreads its 102 holdings more evenly, with Merck the largest at 4.9%. However, SCHD holds far fewer companies overall, 102 versus 505, so it is less diversified in breadth.

Are there tax differences between SCHD and SPY?

Both are US-listed ETFs. For non-US investors, dividends are generally subject to US withholding tax at a treaty-dependent rate, and because SCHD yields 3.12% versus 0.99%, a much larger share of its return is taxable income each year. Tax treatment depends on your country and account type.

Can I hold both SCHD and SPY?

Yes, and the two combine well because they share none of their top holdings. SPY provides broad market and technology exposure, while SCHD adds income and a tilt toward established value companies. Holding both raises the overall yield of a portfolio without giving up the growth names that SCHD excludes.

SCHD vs SPY

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

SCHD tracks the Dow Jones U.S. Dividend 100, holding 102 dividend payers such as Merck, Abbott and Coca-Cola, for 0.06% a year with a 3.12% yield. SPY tracks the S&P 500 with 505 holdings for 0.09% and yields 0.99%. SCHD suits income-focused investors; SPY suits those who want the broadest US large-cap benchmark, including the technology names SCHD leaves out. Educational content, not financial advice.

SCHD tracks the Dow Jones U.S. Dividend 100, holding 102 dividend payers such as Merck, Abbott and Coca-Cola, for 0.06% a year with a 3.12% yield. SPY tracks the S&P 500 with 505 holdings for 0.09% an...

Fund Snapshot

Key Fund Metrics

SCHD

Metric

SPY

0.06%

Expense Ratio

0.09%

3.12%

Dividend Yield

0.99%

$112.77B

Net Assets

$785.05B

102

Holdings

505

Oct 20, 2011

Inception Date

Jan 22, 1993

Dow Jones U.S. Dividend 100

Index Tracked

S&P 500

Large Value

Fund Category

Large Blend

SCHD costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHD

Pros

Dividend yield of 3.12% is more than three times the 0.99% paid by SPY
Expense ratio of 0.06% is lower than SPY's 0.09%
Holdings are spread fairly evenly, with no single stock above 5% of the fund

Considerations

Only 102 holdings and none of the mega-cap technology names in SPY's top ten
Smaller asset base of $112.8 billion against $785 billion for SPY
Value tilt means it can lag when growth stocks lead the market

SPY

Pros

Broadest US large-cap exposure with 505 holdings across every sector
Largest ETF of the pair at $785 billion, trading since 1993
Includes technology leaders such as NVIDIA, Apple and Microsoft that SCHD excludes

Considerations

Expense ratio of 0.09% is higher than SCHD's 0.06%
Dividend yield of 0.99% is low for investors who need income
Top ten holdings are concentrated in a few mega-cap technology companies

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About SCHD and SPY

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

SPY (SPY)

SPDR S&P 500 ETF Trust (SPY) is an exchange‑traded fund designed to track the S&P 500 index, offering investors broad exposure to large‑capitalisation US equities. It is widely used by retail and institutional investors for core portfolio allocation, tactical trading and hedging because of its deep liquidity and transparent holdings. SPY distributes dividends (typically quarterly) and reflects the performance of the underlying index, so returns move with the US large‑cap market. As with any equity product, value can fall as well as rise and past performance is not a guide to the future. Costs, tax considerations and suitability will depend on an individual’s circumstances; consult official documents and consider seeking independent advice where appropriate. This summary is general educational information and not personalised investment advice.

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Following Charles Schwab's massive $20 billion stock buyback and dividend increase, this theme focuses on other financially robust companies that are similarly rewarding their investors. The strategy is to invest in firms with strong cash flows and a commitment to returning capital to shareholders.

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SCHD vs SPY

Fund Snapshot