Which is the superior broad-market ETF, Schwab’s SCHB or State Street’s SPTM?

June 13, 2026

The decision between the State Street SPDR Portfolio S&P 1500 Total Stock Market ETF (NYSEMKT:SPTM) and the Schwab US Broad Market ETF (NYSEMKT:SCHB) can be influenced by whether an investor is looking for exposure to 1,512 established firms or a broader array of 2,410 companies.

Both ETFs provide vital access to U.S. equities. SPTM follows the S&P Composite 1500, while SCHB is linked to the Dow Jones U.S. Broad Stock Market Index. Their goal is to cover a significant portion of the investable domestic market at minimal cost, catering especially to long-term investors.

Key Metrics

Metric	SPTM	SCHB
Publisher	State Street	Schwab
Expense Ratio	0.03%	0.03%
1-Year Return (as of June 8, 2026)	24.9%	24.9%
Dividend Yield	1.04%	1.01%
Beta	1.00	1.01
AUM	$13.3 billion	$42.4 billion

Beta reflects the price volatility compared to the S&P 500, determined from 5 years of monthly returns. One year’s return indicates the total return for the next 12 months. The dividend yield is based on trailing 12-month distributions.

These ETFs are among the most affordable in their space, both with an expense ratio of 0.03%. The one-year return for both funds is identical at 24.9% by June 8.

Evaluating Performance and Risk

Metric	SPTM	SCHB
Maximum Drawdown (5 years)	(24.1%)	(25.4%)
$1,000 Growth in 5 Years (Total Return)	$1,842	$1,787

Fund Holdings

The Schwab US Broad Market ETF grants access to 2,410 stocks, delving deeper into smaller companies than its counterpart. Its sector allocation is 37% in technology, 11% in financial services, and 10% in communications services. Notable stocks include Nvidia (NASDAQ:NVDA) at 6.99%, Apple (NASDAQ:AAPL) at 6.33%, and Microsoft (NASDAQ:MSFT) at 4.34%. Launched in 2009, it has a trailing 12-month dividend of $0.30 per share.

Conversely, the State Street SPDR Portfolio S&P 1500 focuses on a selective index of 1,512 firms, which translates to a higher concentration in its top holdings. Leading positions include NVIDIA at 7.37%, Apple at 6.43%, and Microsoft at 4.44%. With a sector allocation of 37% technology, 11% financial services, and 10% consumer cyclicality, it began in 2000 and has distributed $0.95 per share over the trailing year.

For detailed insights into investing in ETFs, check out our comprehensive guide at: this link.

What Investors Should Consider

Both the Schwab US Broad Market ETF (SCHB) and the State Street SPDR Portfolio S&P 1500 Total Stock Market ETF (SPTM) are appealing options for those looking to invest in the entire U.S. stock market. However, making a choice between these two isn’t straightforward, as they bear striking similarities.

Both funds display similar one-year performance, beta, and expense ratios, but the State Street option offers a slightly more generous dividend yield of 1.04% versus 1.01% for Schwab’s ETF. However, there are critical factors that could affect the choice between the two.

State Street’s SPTM has experienced lower maximum drawdowns in the last five years, allowing for superior growth compared to SCHB. Given that it tracks the S&P Composite 1500, SPTM may appeal more to those focusing on these stocks. Although it has fewer holdings, they represent about 90% of the investable U.S. stock market.

On the other hand, SCHB boasts significantly larger assets under management and better liquidity, which might sway investors in its favor since this often means narrower bid-ask spreads. Tracking the Dow Jones US Broad Stock Market Index, SCHB includes a greater number of stocks and provides expanded access to smaller companies compared to SPTM.

Is Now the Right Time to Invest in Schwab US Broad Market ETF?

Before buying shares of Schwab’s US Broad Market ETF, think about the following:

According to Motley Fool Stock Advisor, the analyst team has pinpointed certain stocks they believe are superior investments right now, and notably, Schwab’s ETF is not one of them. These highlighted stocks have strong potential for substantial returns in the coming years.

The list includes firms like Netflix, which, if you had invested $1,000 in when recommended on December 17, 2004, would now be worth $438,283*; or Nvidia, where a $1,000 investment from April 15, 2005, would have grown to $1,257,427*.

It’s also worth mentioning that Stock Advisor has shown an average return of 938% — greatly outperforming the S&P 500’s 206%. Discover our latest Top 10 list from Stock Advisor, which is designed by investors for investors.

*Stock Advisor returns will be available on June 12, 2026.

Roberto Izquierdo indicates that they hold positions in Apple, Microsoft, and Nvidia, which are also recommended by The Motley Fool. For further transparency, check the disclosure policy.