SCHB vs. SPTM: Which Broad Market ETF Is the Better Buy?

Core Insights - Both State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) and Schwab U.S. Broad Market ETF (SCHB) provide broad U.S. equity market exposure, serving as foundational components for diversified portfolios [1] Cost & Size Comparison - Both SPTM and SCHB have an expense ratio of 0.03% [2][3] - As of March 25, 2026, SPTM has a 1-year return of 13.5% while SCHB has a return of 13.7% [2] - Both funds offer a dividend yield of 1.1% [2] - SPTM has assets under management (AUM) of $12.2 billion, whereas SCHB has AUM of $38.7 billion [2] Performance & Risk Comparison - Over the past five years, SPTM experienced a maximum drawdown of -24.1%, while SCHB had a drawdown of -25.4% [4] - An investment of $1,000 in SPTM would have grown to $1,625 over five years, compared to $1,576 for SCHB [4] Portfolio Composition - SCHB aims to replicate the Dow Jones U.S. Broad Stock Market Index, holding over 2,400 stocks with significant allocations in technology (32%), financial services (14%), and healthcare (10%) [5] - SPTM tracks the S&P Composite 1500 Index and holds more than 1,500 stocks, with similar sector allocations: technology (32%), financial services (13%), and industrials (10%) [6] - Both funds have top holdings in Nvidia, Apple, and Microsoft, with SPTM allocating slightly more to each [6] Investor Implications - The choice between SCHB and SPTM is nuanced, as both funds have identical expense ratios and similar performance metrics, making the decision largely dependent on individual investment preferences [8] - SCHB's broader index methodology includes approximately 900 more holdings than SPTM, potentially reducing single-stock concentration risk [9]