The State Street SPDR Portfolio S&P 600 Small Cap ETF (NYSEMKT:SPSM) tracks a curated list of 608 small-cap stocks, while the Schwab U.S. Small-Cap ETF (NYSEMKT:SCHA) offers much broader diversification across nearly 1,750 holdings.
Both exchange-traded funds provide low-cost access to U.S. small-cap stocks, yet they follow different indexing philosophies. While one focuses on the established S&P 600 index, the other tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, leading to differences in sector weights and risk profiles.
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 with identical 0.03% expense ratios. However, the State Street fund currently provides a higher income stream, outperforming the Schwab fund in trailing-12-month distribution yield by a modest margin.
Performance & risk comparison
What’s inside
Schwab U.S. Small-Cap ETF tracks a broad index of approximately 1,748 stocks, with its largest sectors including healthcare at 17%, financial services at 17%, and technology at 15%. Its largest positions include Halozyme Therapeutics (NASDAQ:HALO) at 0.36%, Glaukos (NYSE:GKOS) at 0.34%, and Wayfair (NYSE:W) at 0.32%. The fund was launched in 2009. Schwab U.S. Small-Cap ETF has paid $0.37 per share over the trailing 12 months, which, on its recent ~$33.05 share price, works out to a 1.1% yield.
State Street SPDR Portfolio S&P 600 Small Cap ETF holds 608 companies, leaning toward financial services at 18%, industrials at 17%, and consumer cyclical at 13%. Top holdings include Glaukos Corp at 0.81%, Viasat (NASDAQ:VSAT) at 0.61%, and Paycom Software (NYSE:PAYC) at 0.57%. The fund was launched in 2013. State Street SPDR Portfolio S&P 600 Small Cap ETF has paid $0.82 per share over the trailing 12 months, which, at its recent ~$54.98 share price, works out to a 1.5% yield.
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