SCHB vs. SPTM: Which Broad Market ETF Is the Better Buy?
Key Points
Both SPTM and SCHB charge a 0.03% expense ratio and delivered nearly identical 1-year total returns as of March 2026.
SCHB holds nearly 900 more stocks than SPTM and manages three times the assets.
Both funds offer a nearly identical dividend yield, with similar technology tilts and risk profiles.
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Both State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT: SPTM) and Schwab U.S. Broad Market ETF (NYSEMKT: SCHB) are designed to offer broad U.S. equity market exposure, making them core building blocks for diversified portfolios.
This comparison highlights each ETF’s cost, yield, risk, and portfolio composition to help investors determine which fund better aligns with their investment objectives.
Snapshot (cost & size)
| Metric | SPTM | SCHB |
|---|---|---|
| Issuer | State Street | Schwab |
| Expense ratio | 0.03% | 0.03% |
| 1-yr return (as of 3/25/26) | 13.5% | 13.7% |
| Dividend yield | 1.1% | 1.1% |
| Beta | 1.01 | 1.04 |
| AUM | $12.2 billion | $38.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
SPTM and SCHB both carry a very modest 0.03% expense ratio, keeping costs negligible for long-term investors. Each fund pays a roughly equal dividend yield.
Performance & risk comparison
| Metric | SPTM | SCHB |
|---|---|---|
| Max drawdown (5 y) | -24.1% | -25.4% |
| Growth of $1,000 over 5 years | $1,625 | $1,576 |
What's inside
SCHB seeks to mirror the performance of the Dow Jones U.S. Broad Stock Market Index. It holds more than 2,400 stocks, with top sector allocations of technology (32%), financial services (14%), and healthcare (10%). Its top holdings -- Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) -- make up about 17% of assets, reflecting a tilt toward large-cap tech.
SPTM, in contrast, tracks the S&P Composite 1500 Index and holds more than 1,500 stocks. It leans similarly toward technology with a 32% allocation, with a 13% weighting in financial services, and a 10% allocation to industrials. The top three holdings are the same as SCHB, though SPTM gives each a marginally larger allocation. Both funds provide broad market exposure without major sector or style biases, but SCHB’s broader holding count may slightly reduce single-stock concentration risk.
For more guidance on ETF investing, check out the full guide here.
What this means for investors
For everyday investors, the choice between SCHB and SPTM is a close call -- and that's the most important takeaway here. When two funds charge the same razor-thin expense ratio, track similar slices of the U.S. market, and deliver nearly identical returns over the past year, the differences come down to nuance.
SCHB's additional 900 or so holdings reflect a wider index methodology -- it simply casts a broader net than SPTM, reaching further into the smaller end of the U.S. market. For most investors, that distinction is unlikely to be felt day to day.
Both funds are solid, low-drama core holdings that deliver exactly what they promise: broad U.S. equity exposure at virtually no cost. For most investors, the better question isn't which one to pick -- it's whether you already have broad U.S. market exposure in your portfolio at all. If you do, adding either fund is largely redundant. If you don't, either one gets the job done.
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Andy Gould has positions in Apple and Nvidia and has the following options: long January 2027 $125 calls on Nvidia and short January 2027 $125 puts on Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool has a disclosure policy.
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