What does the expense ratio represent for these funds?

The expense ratio is the annual fee charged to manage the fund, deducted from assets. SCHD charges 0.06%, while SPYI charges 0.68%. This means for every £100 invested, SCHD costs 6 pence annually, whereas SPYI costs 68 pence. The higher fee in SPYI reflects the cost of active management and derivative strategies used to generate income, whereas SCHD operates as a lower-cost, passive-style dividend equity fund.

How do the investment strategies differ between SCHD and SPYI?

SCHD is categorised as a Large Value fund, focusing on established US companies with a history of paying dividends. Its top holdings include healthcare, consumer staples, and energy firms. SPYI, labelled as Derivative Income, targets high yield through S&P 500-related derivative strategies. Its top holdings are heavily weighted towards technology giants like NVDA and AAPL. The core difference is traditional dividend growth versus engineered high-income distribution.

How do the dividend yields compare for beginners?

SPYI currently reports a dividend yield of 11.79%, significantly higher than SCHD's 3.11%. However, a higher yield does not automatically mean better performance. SPYI's yield is generated through options strategies on the S&P 500, which can cap upside potential and introduces complexity. SCHD's yield is derived from corporate profits of dividend-paying companies. Beginners should understand that yield sources differ materially in risk and sustainability.

Do these two funds have overlapping top holdings?

No, there are no shared top-10 holdings between SCHD and SPYI. SCHD's largest positions are MRK, ABT, and AMGN, representing a mix of healthcare, consumer, and industrial sectors. In contrast, SPYI's top positions are NVDA, AAPL, and MSFT, reflecting a strong technology bias. This distinct separation means an investor holding both would have very little direct stock overlap, providing broader diversification across sectors.

What is the impact of the fee difference over time?

Over long periods, even small fee differences compound. The 0.62 percentage point difference between SPYI's 0.68% and SCHD's 0.06% expense ratio means SPYI costs significantly more to hold. While SPYI's higher yield may offset this cost during certain market conditions, the drag on total return from higher fees is a persistent structural factor. Investors should weigh the fee cost against the desired income generation.

How does fund size and liquidity compare?

SCHD has net assets of $112.8 billion and an inception date of October 2011, indicating substantial scale and long-term market presence. SPYI has $12.1 billion in net assets and launched in August 2022. While SPYI is significantly smaller, it has accumulated considerable assets quickly, showing strong demand. Generally, larger asset bases contribute to tighter bid-ask spreads and higher liquidity for traders.

What sector risks should investors be aware of?

SCHD's top holdings are concentrated in healthcare, consumer staples, and energy, which may offer defensive characteristics during market downturns. SPYI's top holdings are heavily concentrated in technology. This makes SPYI potentially more sensitive to valuation fluctuations and interest rate changes that impact growth stocks. Investors must recognise that sector concentration drives the risk-return profile of each fund beyond just the headline yield.

How does the underlying index tracking differ?

The specific index tracked for SCHD is not available in the provided data, though it functions as a US dividend equity fund. Similarly, the specific index for SPYI is not available, despite its name referencing the S&P 500. Investors should note that SPYI uses derivative strategies linked to the S&P 500 rather than simply holding the index, which means its performance may deviate from a pure index-tracking vehicle due to options costs and caps.

Which investing goals are typically associated with each fund?

SCHD is often associated with investors seeking lower costs, capital appreciation, and a reliable, growing dividend from established companies. SPYI is typically associated with those seeking maximised current income, accepting higher fees and complex derivative risks. Neither is universally 'better'; SCHD suits a core long-term equity portfolio, while SPYI might serve as an income booster in a diversified portfolio.

Is this comparison considered financial advice?

No. This content is strictly educational and intended to help beginners understand how to interpret ETF comparison metrics such as expense ratios, yields, and holdings. It does not constitute financial advice or a recommendation to buy, sell, or hold any security. All figures are sourced from Yahoo Finance as of 22 September 2026. Readers should consult a qualified financial advisor for personal investment guidance.

SCHD vs SPYI

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

Compare SCHD (US Dividend Equity ETF Schwab) and SPYI (NEOS S&P 500 High Income ETF) to evaluate their fees, holdings, dividends and how each fund tracks its market. SCHD has an expense ratio of 0.06% and a dividend yield of 3.11%, while SPYI has an expense ratio of 0.68% and a dividend yield of 11.79%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHD

Metric

SPYI

0.06%

Expense Ratio

0.68%

3.11%

Dividend Yield

11.79%

$112.77B

Net Assets

$12.13B

102

Holdings

511

Oct 20, 2011

Inception Date

Aug 30, 2022

–

Index Tracked

–

Large Value

Fund Category

Derivative Income

SCHD costs about $62.00 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

Schwab U.S. Dividend Equity ETF offers a low 0.06% expense ratio for large-value investors.
The fund provides a 3.11% yield through established holdings like MRK, ABT, and AMGN.
With $112.8 billion net assets since 2011, SCHD benefits from substantial scale and liquidity.

Considerations

Yield of 3.11% may not suit high-income seekers versus derivatives-focused alternatives.
Top holdings show healthcare and energy concentration, potentially amplifying sector-specific volatility risks.
Expense ratio is low, but dividend growth could trail broad-market capital appreciation over time.

SPYI

Pros

NEOS S&P 500 High Income ETF delivers an elevated 11.79% yield through derivative strategies.
The fund provides diversified exposure to leading technology holdings like NVDA, AAPL, and MSFT.
Launched in 2022, SPYI attracts significant $12.1 billion net assets, indicating strong demand.

Considerations

High 0.68% expense ratio increases costs compared to traditional low-fee index funds.
11.79% yield relies on derivative income, introducing strategy-specific risks and complexity.
Top holdings are heavily weighted toward volatile technology stocks, potentially increasing downside sensitivity.

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About SCHD and SPYI

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.

SPYI (SPYI)

The NEOS S&P 500 High Income ETF is designed to provide investors with high monthly income by combining exposure to the S&P 500 index with a covered call strategy. This approach aims to generate option premium income to enhance yields, potentially at the cost of limited upside participation during strong bull markets. The fund is actively managed and maintains a large number of holdings to diversify its equity exposure. It may be suitable for investors seeking regular income streams, though high yields often come with increased complexity and different risk profiles compared to traditional index funds. Investors should consider that dividends are not guaranteed, can fluctuate significantly, and may include return of capital, which can erode net asset value over time.

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SCHD vs SPYI

Fund Snapshot