Wealthy PotSCHX vs VOO: 750 Large Companies or the S&P 500?
SCHX and VOO both hold the largest companies in the U.S. and both charge 0.03% a year. VOO is Vanguard's S&P 500 ETF, the most familiar index in the world. SCHX is Schwab's U.S. Large-Cap ETF, which tracks a Dow Jones index of roughly the 750 biggest U.S. stocks. With the fee tied, the question is whether you want the S&P 500 specifically, or a slightly wider slice of large-cap America.
The Short Answer
- Same fee: 0.03% each.
- Different index: SCHX follows the Dow Jones U.S. Large-Cap Total Stock Market Index; VOO follows the S&P 500.
- Different breadth: SCHX held 755 stocks, VOO 505.
- Heavy overlap: the same giant companies dominate both, so they behave very similarly.
SCHX vs VOO Side by Side
| Feature | SCHX | VOO |
|---|---|---|
| Full name | Schwab U.S. Large-Cap ETF | Vanguard S&P 500 ETF |
| Index | Dow Jones U.S. Large-Cap Total Stock Market Index | S&P 500 Index |
| Expense ratio | 0.03% | 0.03% |
| Number of holdings | 755 | 505 |
| How stocks are chosen | By size, using published rules | By an index committee, using published criteria |
| Inception | November 3, 2009 | September 7, 2010 |
A Rule Versus a Committee
The S&P 500 is not simply the 500 largest U.S. companies. A committee at S&P Dow Jones Indices selects its members using criteria that include size, liquidity and profitability, so a big company can wait to be added and a smaller one can be included. VOO copies that list.
SCHX's Dow Jones index is built mechanically instead: it takes the large-cap segment of the U.S. market by size, which comes to roughly 750 stocks. There is no committee judgement about which companies deserve a place. The practical effect is that SCHX reaches a little further down the size ladder and picks up large companies the S&P committee has not added.
VOO holds 505 stocks rather than 500 because a few companies have more than one class of share in the index.
What the Extra 250 Stocks Do
Very little, most of the time. Both funds weight by market value, so the biggest companies make up most of each portfolio and the roughly 250 extra stocks in SCHX are mostly among its smaller positions. They make SCHX marginally more diversified and marginally more tilted toward the upper end of mid-sized companies. Over most periods the two funds' results are close; differences come from those smaller positions and from companies the S&P committee treats differently from a size rule.
If you want genuinely broader exposure, the bigger step is a total-market fund, which adds small companies as well. See VTI vs VOO for that comparison.
Which One Fits You
- Choose VOO if you want the S&P 500 itself, the benchmark most funds and advisers measure against.
- Choose SCHX if you prefer a rules-based large-cap index with a few hundred more companies, or you build your portfolio with Schwab funds.
- Either works as a core large-cap holding. The fee is identical and the portfolios overlap heavily.
- Do not hold both. You would own the same giant companies twice.
FAQ
Is SCHX or VOO cheaper?
Neither. Both charge 0.03%.
Does SCHX track the S&P 500?
No. SCHX tracks the Dow Jones U.S. Large-Cap Total Stock Market Index, about 750 stocks. VOO tracks the S&P 500.
Why does VOO hold 505 stocks, not 500?
Some companies have more than one share class in the S&P 500, so the fund holds more than 500 securities.
Is SCHX more diversified than VOO?
Slightly. It holds about 250 more stocks, but most of the extra ones are small positions, so the difference in practice is modest.
Can I use SCHX and VOO to tax-loss harvest?
Many investors treat funds on different indexes as acceptable swaps, but the IRS has never defined "substantially identical" for funds. Read our note on wash sales and get tax advice first.
This article is for general information and is not investment advice. Fund figures were taken from Schwab's and Vanguard's published fund pages on 2026-09-23 and can change; confirm current figures before you invest.