SCHB vs. SPTM: Which Total Stock Market ETF Is the Better Buy for Investors?
Key Points
Both SPTM and SCHB deliver nearly identical ultra-low costs and broad U.S. stock market exposure.
SCHB holds more companies and manages a much larger asset base.
Recent returns and yields are matched, and the funds have shown similar maximum drawdowns over five years, too.
- These 10 stocks could mint the next wave of millionaires ›
The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) and the Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) both aim to mirror the performance of the broad U.S. stock market for a minimal fee, making each a candidate for a core holding in a diversified portfolio.
This comparison examines cost, size, sector tilts, historical returns, and key structural details to help clarify which approach may appeal to investors based on their priorities.
Snapshot (cost & size)
| Metric | SPTM | SCHB |
|---|---|---|
| Issuer | SPDR | Schwab |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of Jan. 25, 2026) | 12.91% | 12.80% |
| Dividend yield | 1.13% | 1.11% |
| Beta (5Y monthly) | 1.02 | 1.05 |
| AUM | $12 billion | $38 billion |
Beta measures price volatility relative to the S&P 500. The 1-yr return represents total return over the trailing 12 months.
Expense ratios for both ETFs are as low as it gets at 0.03%. With dividend yields also nearly identical, neither fund stands out on cost or payout. Investors comparing these two will likely need to focus on other factors, such as size and diversification.
Performance & risk comparison
| Metric | SPTM | SCHB |
|---|---|---|
| Max drawdown (5 y) | -24.15% | -25.40% |
| Growth of $1,000 over 5 years | $1,765 | $1,700 |
What's inside
SCHB seeks to track the performance of the Dow Jones U.S. Broad Stock Market Index and holds 2,401 stocks, with a portfolio tilt of 33% technology, 13% financial services, and 11% consumer cyclical.
Its top holdings are Nvidia, Apple, and Microsoft, and the fund has been operating since 2009 with no notable quirks or overlays.
In contrast, SPTM follows the S&P Composite 1500 Index, giving exposure to roughly 1,510 stocks across all market capitalizations. Its top sector allocations are nearly identical to SCHB, and its top three holdings are also Nvidia, Apple, and Microsoft. It was launched in 2000, giving it a longer history than SCHB.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
SPTM and SCHB are nearly identical in most ways. They offer the same low expense ratio and nearly matching dividend yields, putting them on fairly equal footing in terms of fees and income.
They also focus primarily on tech stocks, followed by financial services and consumer cyclical stocks. They share the same top three holdings, with those companies making up 18.35% of SCHB’s portfolio compared to 19.79% for SPTM.
With total returns and max drawdowns close to the same, these funds have also shown similar performance and volatility.
The two main differentiators are their assets under management (AUM) and the number of holdings, and SCHB is larger on both accounts. A larger AUM can increase liquidity, allowing investors to buy and sell larger amounts without affecting the ETF’s price.
SCHB also contains nearly 1,000 more stocks than SPTM. While that hasn’t appeared to result in a significant difference in its risk profile or total returns, it can be an advantage for investors seeking greater exposure to the broader market.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 949%* — a market-crushing outperformance compared to 195% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of January 25, 2026.
Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Recommended Articles
