Generated April 2026 from current fund data.
Overview
SCHB and VOO are both low-cost, broad equity ETFs that track different segments of the U.S. stock market. VOO tracks the S&P 500's 500 largest companies, while SCHB tracks the much broader Dow Jones U.S. Broad Stock Market Index, which includes roughly 3,500 stocks spanning large-, mid-, and small-cap names. The key distinction: VOO is a concentrated large-cap play; SCHB offers exposure across the entire market cap spectrum.
How they differ
The biggest difference is scope. VOO owns the 500 largest U.S. companies; SCHB owns roughly 7 times as many holdings, capturing mid- and small-cap stocks that VOO excludes entirely. This makes SCHB's portfolio meaningfully more diversified by company size and arguably more representative of the total U.S. stock market.
Yields are nearly identical—VOO's 1.09% and SCHB's 1.07% reflect their similar equity compositions and quarterly distribution schedules. Expense ratios match at 0.03% for both.
Size and ownership separate them sharply. VOO is massive, with $1.42 trillion in AUM versus SCHB's $36.9 billion. That scale gives VOO unmatched liquidity and tighter bid-ask spreads. Beta tells a story too: VOO's 1.0 beta indicates it moves lockstep with the broad market, while SCHB's 1.04 reflects its tilt toward smaller, more volatile holdings outside the S&P 500.
Who each is best for
VOO: Investors seeking maximum simplicity, liquidity, and the broadest institutional adoption. S&P 500 exposure is the market baseline; VOO executes it flawlessly with minimal friction.
SCHB: Investors who want U.S. stock market exposure beyond the largest 500 companies and believe mid- and small-cap stocks merit a permanent portfolio slice. Works well in taxable accounts thanks to low turnover and qualified dividends.
Key risks to know
- Concentration in large-cap dominance. Both funds are heavily weighted toward the largest technology and financial stocks. Sector concentration risk is similar between them, though VOO's pure-500 mandate means less diversification away from mega-cap names.
- Mid- and small-cap volatility in SCHB. The 1.04 beta and inclusion of companies outside the S&P 500 means SCHB will experience sharper drawdowns during market stress, particularly in periods when growth and size rotate.
- Market timing and economic sensitivity. Neither fund insulates you from equity market risk. Both rise and fall with GDP growth, interest rates, and corporate earnings.
- Liquidity skew in favor of VOO. While SCHB is highly liquid, VOO's $1.4 trillion in AUM means tighter spreads and easier entry/exit at any order size.
Bottom line
If you want the simplest, most-adopted core U.S. equity holding with maximum liquidity, VOO is the default choice. If you believe smaller companies deserve exposure and you're comfortable with a bit more volatility, SCHB provides genuine market-cap diversification at the same cost. Neither is objectively superior; the choice hinges on whether you're building a S&P 500 core or owning the full investable market. Past performance doesn't guarantee future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
