{
  "id": 18803453,
  "title": "The Yield vs. Weighting Dilemma: How to Choose Between SPSM and SCHA",
  "url": "https://urgent.news/2026/11/07/the-yield-vs-weighting-dilemma-how-to-choose-between-spsm-and-scha",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-07T22:15:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/coverage/etfs/2026/11/07/the-yield-vs-weighting-dilemma-how-to-choose-between-spsm-and-scha/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) and the Schwab U.S. Small-Cap ETF (SCHA) are two popular exchange-traded funds offering access to U.S. small-cap stocks. While both funds have similar expense ratios of 0.03%, they differ in their approach to indexing and yield.\n\nSPSM is focused on a curated list of 608 small-cap stocks, holding about 600 companies. It is less top-heavy compared to SCHA, which tracks nearly 1,750 holdings across 1,748 stocks. SCHA's approach results in its top 10 stocks contributing around 10% of its exposure. Both funds have outperformed the S&P 500 over the past year, with SPSM achieving a 24% total return (4.4% CAGR) and SCHA delivering a 26% total return (4.8% CAGR).\n\nWhen it comes to income, SPSM offers a higher dividend yield at 1.5%, compared to SCHA's 1.1%. This makes SPSM more attractive for investors seeking regular income from their investments. However, SCHA still provides a modest cash flow for income-focused investors.\n\nUltimately, the choice between SPSM and SCHA depends on the investor's preference and investment goals. Those who prioritize a higher dividend yield may lean towards SPSM, while others who prefer a broader diversification with more stocks may opt for SCHA. Both funds offer an affordable way to invest in small-cap stocks, making them suitable for cost-conscious investors.",
  "summary": "State Street's fund holds fewer stocks but delivers higher income and lower volatility, while Schwab offers broader diversification across 1,750 holdings.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}