Dividend comparison
SCHD vs SPY: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Schwab U.S. Dividend Equity ETF and State Street SPDR S&P 500 ETF, side by side. Updated October 21, 2026.
- Fees. SCHD is cheaper at 0.06% a year versus 0.09% for SPY. On $10,000 that is $3 a year less in fees.
- Income. SCHD pays more income, yielding 3.04% over the last twelve months versus 0.98% for SPY. That is about $206 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, SPY returned 81.3% versus 57.9% for SCHD, with dividends reinvested. $10,000 would have grown to $18,129 in SPY and $15,790 in SCHD.
- Risk. SPY has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -24.5%, against -16.8% for SCHD.
- Diversification. SPY holds 504 positions and SCHD holds 102. The ten largest positions make up 41.7% of SCHD and 38.7% of SPY.
- Overlap. At least 6% of the two portfolios overlap by weight, across 16 shared holdings. They mostly own different companies, so they can complement each other.
- Dividend growth. SCHD grew its yearly payout 8.7% a year over the last 4 years, versus 6.4% for SPY.
- Size. SPY is the larger fund with $816.6 billion in assets, against $114.7 billion for SCHD.
Bottom line: SCHD fits better if you care most about lower fees, more income today, smaller drawdowns and faster dividend growth. SPY fits better if you care most about stronger 5-year returns and broader diversification.
| Metric | SCHD Schwab U.S. Dividend Equity ETF | SPY State Street SPDR S&P 500 ETF |
|---|---|---|
| Dividend yield (TTM) | 3.04% | 0.98% |
| Dividend / share (TTM) | $1.05 | $7.53 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.2665 on Sep 28, 2026 | $1.9035 on Jul 31, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 18, 2026 |
| Next payment | — | $1.8888 on Oct 30, 2026 |
| Dividend growth (CAGR) | 8.7% over 4 yrs | 6.4% over 4 yrs |
| Price | $34.69 | $769.05 |
| Dividend growth streak | 13 years | 16 years |
| Beta | 0.58 | 1.01 |
| Max drawdown (5Y) | -16.8% | -24.5% |
| Market cap | $98.31B | $813.99B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.06% | 0.09% |
| Assets under management | $114.71B | $816.57B |
| Number of holdings | 102 | 504 |
| Top 10 concentration | 41.7% | 38.7% |
SCHD
$25.32/mo
$304 /yr at 3.04% yield
SPY
$8.15/mo
$98 /yr at 0.98% yield
| Year | SCHD | SPY |
|---|---|---|
| 2025 | $1.0476 | $7.2533 |
| 2024 | $0.9944 | $7.0056 |
| 2023 | $0.8862 | $6.5091 |
| 2022 | $0.8540 | $6.1723 |
| 2021 | $0.7499 | $5.6618 |
Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.
What SCHD vs SPY actually do
It tracks the Dow Jones U.S. Dividend 100 Index, which first requires at least ten consecutive years of dividends, then ranks the survivors on a composite of cash flow to total debt, return on equity, dividend yield and five-year dividend growth. The top 100 are held at market-cap weights with a 4% cap per stock and 25% per sector, reconstituted annually and rebalanced quarterly. Those quality screens push the portfolio toward mature value sectors and largely out of high-growth technology, which is the single biggest reason its return diverges from the S&P 500 in either direction.
Suits an investor who wants a growing dividend stream plus share-price participation and can sit out technology-led rallies without changing course. Not a match for someone who needs the highest available current yield or wants full market exposure.
Core dividend holding
It holds the same 500 companies as its rivals, but it is structured as a unit investment trust rather than an open-end fund, an older wrapper that must hold every constituent and cannot put dividends back to work inside the fund before the quarterly payment date. That leaves a small cash drag and it carries a higher expense ratio than the newer S&P 500 trackers, around three times VOO's. What it buys instead is unmatched liquidity and by far the deepest options market of any S&P 500 fund.
Suits traders, options sellers and anyone who needs to move size with tight spreads. For a long-term buy-and-hold position the structural drag and higher fee work against it compared with the newer alternatives.
Core holding, trading vehicle
| Period | SCHD | SPY |
|---|---|---|
| 1 month | 3.83% | 0.97% |
| 3 months | 6.77% | 3.63% |
| Year to date | 29.59% | 13.37% |
| 1 year | 33.01% | 15.51% |
| 3 years | 66.22% | 88.86% |
| 5 years | 57.90% | 81.29% |
- SCHD
- SPY
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
- SCHD
- SPY
| Largest shared holdings | SCHD weight | SPY weight |
|---|---|---|
| CVXCHEVRON | 4.31% | 0.67% |
| PGPROCTER & GAMBLE | 4.34% | 0.55% |
| UNHUNITEDHEALTH GROUP | 4.14% | 0.55% |
| KOCOCA-COLA | 4.30% | 0.55% |
| MRKMERCK & CO INC | 3.85% | 0.53% |
| HDHOME DEPOT | 3.95% | 0.47% |
| TXNTEXAS INSTRUMENT | 4.40% | 0.38% |
| AMGNAMGEN INC | 3.90% | 0.35% |
| QCOMQUALCOMM | 4.15% | 0.28% |
| VZVERIZON COMMUNICATIONS INC | 3.57% | 0.28% |
SCHD102 holdings total
Quick verdict
SCHD fits better if you care most about lower fees, more income today, smaller drawdowns and faster dividend growth. SPY fits better if you care most about stronger 5-year returns and broader diversification. Model the holding inside your real portfolio before deciding.
Frequently asked questions
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How much do SCHD and SPY overlap?
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.