Schwab U.S. Broad Market ETF (NYSEMKT:SCHB) and State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) provide low-cost, comprehensive access to the U.S. market, though their specific index targets and holding counts vary.
Broad market ETFs are designed to capture the performance of the entire domestic stock market in a single package. For long-term investors, these funds serve as core holdings by providing diversification across large-, mid-, and small-cap companies, helping to mitigate the risks associated with individual stock picking.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both funds are exceptionally affordable, each sporting a 0.03% expense ratio. While costs are identical, the Schwab fund currently offers a marginally higher dividend payout, providing a 0.1 percentage point yield advantage over the State Street fund.
Performance & risk comparison
What’s inside
Schwab U.S. Broad Market ETF tracks the Dow Jones U.S. Broad Stock Market Index, holding 2,394 positions. Its sector allocation includes technology at 35.8%, financial services at 12%, and healthcare at 9.4%. Its largest positions include Nvidia at 7%, Apple at 6.7%, and Microsoft at 5.4%. The fund launched in 2009. It has paid $0.31 per share over the trailing 12 months, which on its recent ~$29.6 share price works out to a 1.1% yield.
State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF tracks the S&P Composite 1500 Index, which represents roughly 90% of the investable U.S. equity universe. It holds 1,510 stocks, with a sector tilt toward technology at 36.5%, financial services at 12%, and industrials at 10.4%. Its largest positions include Nvidia at 7.3%, Apple at 6.93%, and Microsoft at 5.56%. The fund launched in 2000. It has paid $0.98 per share over the trailing 12 months, which on its recent ~$93.2 share price works out to a 1% yield.
For more guidance on ETF investing, check out the full guide at this link.
