Wealthy PotSPY vs SWPPX: The Same S&P 500, and SWPPX Costs About a Fifth as Much
SPY and SWPPX both track the S&P 500 and hold the same 500 companies. SPY charges 0.0945% a year. SWPPX charges 0.02%. Over the ten years to 31 August 2026, SWPPX returned 15.34% a year and SPY 15.22% at NAV, a gap of about the size of the fee difference. SPY is an exchange-traded unit investment trust that trades all day like a stock. SWPPX is a Schwab mutual fund priced once a day, built for buying and holding. If you are investing for years and your account is at Schwab, SWPPX is the cheaper way to own the same thing. Do not hold both.
Table of Contents
The Short Answer
- Same stocks. All 500 holdings were shared, and our overlap figure is 95.1%. The figure is below 100% only because the two holdings snapshots are a month apart (30 June and 31 July 2026) and prices moved in between.
- Fees: SPY 0.0945%, SWPPX 0.02%. On $10,000 that is $9.45 against $2 a year; on $100,000, $94.50 against $20.
- Returns to 31 August 2026: SWPPX ahead by 0.11 to 0.13 points a year in every period. Ten years: 15.34% against 15.22%.
- Tracking: SWPPX trailed the S&P 500 by 0.03 points a year over ten years, SPY by 0.15.
- SPY is the trader's tool. It trades all day on NYSE Arca and any broker can hold it. Its $815 billion in assets is about 5.4 times SWPPX's $150 billion.
- SWPPX is the saver's tool. No minimum, exact-dollar purchases at the closing price, available through Schwab or another financial intermediary.
How Much SPY and SWPPX Overlap
Both funds aim to match the S&P 500. SPY's trust is meant to hold "as many of the Index Securities as is practicable," and SWPPX's prospectus says it "will seek to replicate the performance of the index by giving the same weight to a given stock as the index does."
| Holdings snapshots | SPY (S&P 500 weights, 30 Jun 2026) | SWPPX (31 Jul 2026) |
|---|---|---|
| Holdings | 500 | 500 |
| Held by both | 500 | 500 |
| Share of the fund in shared holdings | 99.8% | 99.6% |
| Top-10 weight | 37.83% | 38.92% |
| Overlap, sum of the smaller weight in each shared stock | 95.1% | |
Why 95.1% and not 100%? The overlap adds the smaller of the two weights for each stock, and a month of price moves separates the snapshots. Microsoft was 4.29% of the index at the end of June and 5.34% of SWPPX at the end of July. Micron went the other way, 2.02% against 1.44%. On any single day the two portfolios are the same index.
Check this pair, or your whole portfolio, in the Portfolio Overlap Checker.
SPY vs SWPPX Side by Side
| SPY | SWPPX | |
|---|---|---|
| Full name | SPDR S&P 500 ETF Trust | Schwab S&P 500 Index Fund |
| Legal form | Unit investment trust (exchange-traded) | Open-end mutual fund |
| Index | S&P 500 | S&P 500 |
| Expense ratio | 0.0945% | 0.02% |
| Annual cost on $10,000 | $9.45 | $2.00 |
| Minimum | One share, or less at brokers that sell fractions | None |
| Securities lending and futures | Not permitted | Permitted |
| Holdings | 505 (1 Oct 2026) | 503 (31 Aug 2026) |
| Assets | $815.3 billion (2 Oct 2026) | $149.9 billion (2 Oct 2026) |
| Dividends | Quarterly, in cash | Typically once a year, in December |
| 10-year return to 31 Aug 2026 | 15.22% (NAV) | 15.34% |
| Inception | 22 Jan 1993 | 19 May 1997 |
Returns: The Fee Gap Shows Up
| Annualized return to 31 Aug 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| SPY (NAV) | 20.21% | 20.89% | 12.65% | 15.22% |
| SWPPX | 20.34% | 21.01% | 12.76% | 15.34% |
| S&P 500 index | 20.38% | 21.04% | 12.79% | 15.37% |
| SPY minus SWPPX | -0.13 | -0.12 | -0.11 | -0.12 |
SPY's shortfall to the index, about 0.15 points a year, is a little more than its 0.0945% fee. Its prospectus explains part of the rest. The trust is not authorized to "lend its portfolio securities" or "invest in derivative instruments, including, without limitation, futures contracts," and dividends it receives are held "without interest until distributed." SWPPX's prospectus says it may use futures and lend securities "to minimize the gap in performance that naturally exists between any index fund and its corresponding index." Its gap to the index was 0.03 points a year.
The two prospectuses tell the same story on the same date. For the ten years to 31 December 2025, SWPPX returned 14.78% a year before taxes and SPY 14.66%, against 14.82% for the index. After taxes on distributions, the figures were 14.30% and 14.21%.
| Hypothetical $10,000 held 10 years | Ending value |
|---|---|
| At SPY's 10-year NAV 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
Structure. SPY's prospectus describes it as a "unit investment trust created under the laws of the State of New York." That 1993 design is why it cannot lend shares or use futures, and why "No dividend reinvestment services are provided by the Trust." Your broker may still reinvest SPY dividends for you. SWPPX is an ordinary open-end mutual fund. For more on what the trust structure costs, see IVV vs SPY.
Trading. SPY trades on NYSE Arca all day at market prices, so you can use limit orders and see the price you pay. SWPPX has no intraday price. Its prospectus says you "will receive the share price next calculated after the fund receives your order."
Where you can buy. SWPPX's prospectus: "Investors may only invest in the fund through an account at Charles Schwab & Co., Inc. (Schwab) or another financial intermediary." Schwab's statutory prospectus says intermediaries "may independently establish and charge its customers transaction fees." Any brokerage account can buy SPY.
Dividends. SPY pays quarterly. SWPPX pays once a year; the Schwab Capital Trust prospectus says "These distributions typically are paid in December."
Which One Fits You
Long-term investor with a Schwab account: SWPPX. Same stocks, about a fifth of the fee, no minimum, and you can invest exact dollar amounts.
Long-term investor elsewhere who wants an ETF: neither SPY nor SWPPX is the obvious pick. Cheaper S&P 500 ETFs exist; see SPY vs VOO and SPY vs SPYM. At Fidelity, compare FXAIX vs SPY.
Active trader: SPY. Over a short holding period the fee gap is tiny, and a mutual fund cannot be traded during the day at all.
In a 401(k): use whichever S&P 500 option your plan offers. The menu decides, not you.
In a taxable account where you already hold SPY with a gain: selling to switch could cost more in tax than years of fee savings. Direct new money to the cheaper fund instead, and check your 2026 tax bracket first.
Comparing Schwab's other options: SCHX vs SWPPX (a 750-stock ETF) and SWPPX vs SWTSX (the whole market).
Sources & Methodology
- SPDR S&P 500 ETF Trust prospectus (Form 485BPOS), filed 26 January 2026: 0.0945% expense rate, trust structure, investment restrictions, dividends, returns to 31 December 2025.
- State Street SPY fund page: assets, holdings, returns to 31 August 2026.
- SWPPX summary prospectus, 26 February 2026: fee, minimum, purchase rules, futures and lending, returns to 31 December 2025.
- Schwab Capital Trust prospectus, 26 February 2026: December distributions and intermediary fees.
- Schwab SWPPX fund page: assets, holdings, returns to 31 August 2026.
- iShares Core S&P 500 ETF Form N-PORT, 30 June 2026 (S&P 500 weights standing in for SPY) and SWPPX Form N-PORT for 31 July 2026 (Schwab Capital Trust, filed 24 September 2026): overlap.
How the overlap was computed. For each stock in both portfolios we took the smaller weight and added them up, as the Portfolio Overlap Checker does. Because SPY files no holdings report, we use another S&P 500 fund's weights for it, and say so.
What we did not verify. SPY's bid/ask spread and options volume, SWPPX's SEC yield, and what brokers other than Schwab charge for SWPPX. Neither issuer had posted 30 September 2026 returns for both funds 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 State Street and Schwab before acting.
FAQ: SPY vs SWPPX
Do SPY and SWPPX hold the same stocks?
Yes. Both track the S&P 500, and every one of the 500 holdings in our data was shared.
Which is cheaper?
SWPPX, at 0.02% against SPY's 0.0945%. On $100,000 that is $20 a year against $94.50.
Which has performed better?
SWPPX, by 0.11 to 0.13 points a year in every period to 31 August 2026. Ten years: 15.34% against 15.22%.
Should I own both SPY and SWPPX?
No. It is the same index twice. Pick the one that suits your account and how you invest.
Is SPY better because it is bigger?
Not for a long-term holder. Size does not lower your cost; the expense ratio does, and SPY's is higher. SPY's $815 billion in assets matters more to people who trade in and out.
Can I buy SWPPX at Fidelity or Vanguard?
Its prospectus allows purchase through Schwab "or another financial intermediary," and those intermediaries may charge their own fees. Check with your broker, or compare its own S&P 500 fund.
Does SPY reinvest dividends?
The trust itself does not: its prospectus says "No dividend reinvestment services are provided by the Trust." Many brokers offer automatic reinvestment of ETF dividends; check yours.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"SPY vs SWPPX: The Same S&P 500, and SWPPX Costs About a Fifth as Much." Wealthy Pot, 2026. https://wealthypot.com/spy-vs-swppx/
Related comparisons: SPY vs VOO · SWPPX vs VOO · FXAIX vs SWPPX · IVV vs SPY · SCHX vs SWPPX · All ETF comparisons
