Wealthy PotSCHX vs SWPPX: Schwab's 750-Stock ETF or Its S&P 500 Mutual Fund?
SCHX and SWPPX are Schwab's two cheapest ways to own large US companies. SCHX is an ETF holding about 750 stocks for 0.03% a year. SWPPX is a mutual fund holding the S&P 500 for 0.02%. In their latest SEC holdings filings, 99.1% of SWPPX's money sat in stocks SCHX also held, and 94.7% of SCHX's sat in stocks SWPPX held. Over the ten years to 31 August 2026, SCHX returned 15.22% a year at NAV and SWPPX 15.34%. For most people the choice comes down to the wrapper (ETF or mutual fund) and where your account is. Holding both adds almost nothing.
Table of Contents
The Short Answer
- Overlap: 92.2%, across 495 shared stocks. The shared stocks were 99.1% of SWPPX and 94.7% of SCHX. Our calculation from the funds' Form N-PORT filings, which are two months apart (SCHX 31 May, SWPPX 31 July 2026).
- Fees: SWPPX 0.02%, SCHX 0.03%. On $10,000 that is $2 against $3 a year. The prospectus ten-year cost examples are $26 and $39.
- Ten-year return to 31 August 2026: SWPPX 15.34%, SCHX 15.22% a year. One-year: 20.34% against 19.74%.
- What SCHX adds: about 250 mid-sized companies outside the S&P 500, worth 5.1% of the fund. Snowflake (0.13%) and Cloudflare (0.11%) were the largest.
- The wrapper is the bigger difference. SCHX trades on an exchange through any broker. SWPPX is bought at the end-of-day price, with no minimum, through Schwab or another financial intermediary.
- Do not hold both expecting diversification. They own the same top companies at nearly the same weights.
How Much SCHX and SWPPX Overlap
The two funds follow different indexes. SCHX tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, which its prospectus says "includes the components ranked 1-750 by full market capitalization." Membership follows a size rule. SWPPX tracks the S&P 500, whose members are picked by an S&P index committee. Both weight companies by market value, so the same giants sit at the top of each.
| Latest SEC holdings filings | SCHX (31 May 2026) | SWPPX (31 Jul 2026) |
|---|---|---|
| Holdings in the filing | 747 | 500 |
| Held by both funds | 495 | 495 |
| Share of the fund in those shared holdings | 94.7% | 99.1% |
| Holdings the other fund did not own | 252 (5.08% of SCHX) | 5 (0.51% of SWPPX) |
| Top-10 weight | 38.53% | 38.92% |
| Overlap, sum of the smaller weight in each shared stock | 92.2% | |
The top of both funds is the same. NVIDIA was 7.50% of SCHX and 7.52% of SWPPX, Alphabet 5.81% and 5.84%, Apple 6.69% and 7.02%. Part of the gap from 100% is the two-month difference between filings: Microsoft was 4.88% of SCHX at the end of May and 5.34% of SWPPX at the end of July, Tesla 1.79% and 1.36%. The method adds up the smaller weight of each shared stock, so price moves in between trim the number even when both funds own the company.
The real difference is 5% of SCHX. The 252 SCHX holdings that SWPPX did not own were companies big enough for SCHX's top 750 but not in the S&P 500 on those dates. Together they were 5.08% of SCHX, and no single one passed 0.13%. Going the other way, SWPPX had five holdings outside SCHX worth 0.51%, the largest Sandisk at 0.28%.
Check this pair, or your whole portfolio, in the Portfolio Overlap Checker.
SCHX vs SWPPX Side by Side
| SCHX | SWPPX | |
|---|---|---|
| Full name | Schwab U.S. Large-Cap ETF | Schwab S&P 500 Index Fund |
| Type | ETF (NYSE Arca) | Mutual fund |
| Index | Dow Jones U.S. Large-Cap Total Stock Market Index | S&P 500 |
| How members are chosen | Size rule: ranks 1-750 | S&P index committee |
| Expense ratio | 0.03% | 0.02% |
| Prospectus cost on $10,000 over 10 years | $39 | $26 |
| Minimum | One share, or less at brokers that sell fractions | None |
| Holdings | 756 (2 Oct 2026) | 503 (31 Aug 2026) |
| Total net assets (2 Oct 2026) | $74.5 billion | $149.9 billion |
| Portfolio turnover (31 Aug 2026) | 3.09% | 2.53% |
| 30-day SEC yield | 1.01% (1 Oct 2026) | Not published on Schwab's page |
| Distributions | Not verified | Typically once a year, in December |
| 10-year return to 31 Aug 2026 | 15.22% (NAV) | 15.34% |
| Inception | 3 Nov 2009 | 19 May 1997 |
Returns: SWPPX Slightly Ahead
| Annualized return to 31 Aug 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| SCHX (NAV) | 19.74% | 20.94% | 12.16% | 15.22% |
| SWPPX | 20.34% | 21.01% | 12.76% | 15.34% |
| SCHX minus SWPPX | -0.60 | -0.07 | -0.60 | -0.12 |
The fee explains only a hundredth of a point. The rest comes from the indexes. SCHX matched its own index almost exactly (19.74% against 19.74% over one year, 15.22% against 15.24% over ten). So the 0.60-point gaps over one and five years came from the 5% of SCHX in smaller companies, which lagged the S&P 500 in those windows. That can reverse when mid-sized companies lead. SCHX's own prospectus shows the same pattern over a longer stretch: to 31 December 2024, the S&P 500 returned 13.10% a year over ten years and SCHX's index 12.97%.
| Hypothetical $10,000 held 10 years | Ending value |
|---|---|
| At SCHX's 10-year return (15.22%) | $41,236 |
| At SWPPX's 10-year return (15.34%) | $41,668 |
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Where They Really Differ
How you buy. SCHX's prospectus says individual shares "may only be purchased and sold in the secondary market ... through a broker or dealer at market prices." You trade it during the day, and its 30-day median bid/ask spread was 0.03% to 2 October 2026. SWPPX is priced once a day at net asset value, and you buy in exact dollar amounts. Its prospectus: "There is no minimum initial investment for the fund."
Where you can buy. SWPPX's prospectus says: "Investors may only invest in the fund through an account at Charles Schwab & Co., Inc. (Schwab) or another financial intermediary." Schwab's statutory prospectus adds that an intermediary "may independently establish and charge its customers transaction fees." SCHX trades on NYSE Arca, so any brokerage account can hold it.
How it pays out. Schwab's index mutual funds distribute once a year; the prospectus says "These distributions typically are paid in December." Schwab's SWPPX distribution table showed a December 2025 income payment and no capital gains distribution in that payment. Over the ten years to 31 December 2025, SWPPX returned 14.78% a year before taxes and 14.30% after taxes on distributions. SCHX's prospectus shows a similar 0.48-point drag over the ten years to 31 December 2024 (12.94% against 12.46%). Those windows differ, so treat it as "no clear tax edge either way."
Share price. SWPPX split 6-for-1 in August 2025, so its NAV was $19.95 on 2 October 2026. That has no effect on returns. It only makes round-number purchases easier.
Which One Fits You
Your account is at Schwab and you invest a fixed dollar amount each month: SWPPX. No minimum, exact-dollar purchases, and the lower fee.
Your account is elsewhere, or you may move it: SCHX. Any broker can hold an ETF, and it transfers without fuss. If you want the S&P 500 itself as an ETF, compare SCHX vs VOO or SPY vs SWPPX.
You want a little more than the S&P 500: SCHX's extra 5% in mid-sized companies is a small tilt. For the whole market, including small companies, see SCHB vs SCHX or SWPPX vs SWTSX.
In an IRA or 401(k): either works. If your plan menu offers only one, the difference is not worth worrying about.
In a taxable account where you already own one with a gain: keep it. Selling to switch could trigger tax for a portfolio that is about 95% the same. Send new money where you prefer, and check your 2026 tax bracket before any sale.
You want growth stocks only: neither. See SCHG vs SWPPX and SCHG vs SCHX.
Sources & Methodology
- SCHX summary prospectus, 27 February 2026 and SWPPX summary prospectus, 26 February 2026: fees, cost examples, indexes, purchase rules, after-tax returns, index comparison.
- Schwab Capital Trust prospectus, 26 February 2026: December distributions and intermediary fees.
- Schwab Capital Trust annual report (N-CSR), fiscal year to 31 October 2025: the SWPPX share split.
- SCHX Form N-PORT, 31 May 2026 and SWPPX Form N-PORT for 31 July 2026 (Schwab Capital Trust, filed 24 September 2026): holdings behind the overlap and top-10 figures.
- Schwab SCHX fund page and Schwab SWPPX fund page: net assets, holdings, turnover, yield, spread and returns to 31 August 2026.
How the overlap was computed. For each stock both funds held, we took the smaller of the two weights and added them up, the method the Portfolio Overlap Checker uses on the same N-PORT data. SCHX and SWPPX have different fiscal years, so their holdings filings fall in different months; we show both dates.
What we did not verify. SCHX's dividend schedule, SWPPX's SEC yield, what brokers other than Schwab charge to buy SWPPX, and why Sandisk was outside SCHX on 31 May 2026. Schwab had not posted returns to 30 September 2026 when we checked.
This article is for general education and is not investment, tax or legal advice. Past performance does not guarantee future results, and all investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026; fund data changes daily, so confirm current figures with Schwab before acting.
FAQ: SCHX vs SWPPX
Is SCHX the ETF version of SWPPX?
No. SWPPX tracks the S&P 500 and SCHX tracks a Dow Jones index of the 750 largest US companies. They are close: 99.1% of SWPPX's money was in stocks SCHX also held. But SCHX carries about 250 extra mid-sized companies.
Which is cheaper?
SWPPX, at 0.02% against 0.03%. That is $1 a year per $10,000.
Which has performed better?
SWPPX, slightly: 15.34% a year over the ten years to 31 August 2026 against 15.22% for SCHX at NAV, and ahead in every period Schwab shows.
Should I own both SCHX and SWPPX?
There is little reason to. They overlap by 92.2% on our calculation, and the top ten holdings are the same companies.
Can I buy SWPPX outside Schwab?
Its prospectus allows purchase through Schwab "or another financial intermediary," and intermediaries may charge their own fees. Check your broker. SCHX trades on an exchange, so any broker can buy it.
Does either fund have a minimum?
SWPPX has none. SCHX costs one share at market price, or less where your broker sells fractional shares.
Is SCHX more diversified?
A little. It holds about 756 stocks to SWPPX's 503, but the extra names were only 5.1% of SCHX, so the two behave almost alike.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"SCHX vs SWPPX: Schwab's 750-Stock ETF or Its S&P 500 Mutual Fund?" Wealthy Pot, 2026. https://wealthypot.com/schx-vs-swppx/
Related comparisons: SCHX vs VOO · SWPPX vs VOO · SCHB vs SCHX · SPY vs SWPPX · SCHG vs SWPPX · All ETF comparisons
