DFEN vs SCHD
Direxion Daily Aerospace & Defense Bull 3X ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. DFEN delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | DFEN | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.06% | |
| AUM | $419M | $108.7B | |
| Dividend Yield | 7.52% | 3.13% | |
| Holdings | 59 | 104 | |
| YTD Return | +25.52% | +26.54% | |
| 1Y Return | +70.52% | +30.90% | |
| 3Y Return (annualized) | +71.76% | +16.29% | |
| 5Y Return (annualized) | +35.38% | +9.65% | |
| Volatility (annualized) | 66.8% | 13.6% | |
| Max Drawdown | -91.4% | -33.4% | |
| Fund Family | Direxion Shares ETF Trust | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | May 3, 2017 | Oct 20, 2011 |
DFEN vs SCHD Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is a ETF from Direxion Shares ETF Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFEN returned +70.52% while SCHD returned +30.90%. Year to date, DFEN is up 25.52% versus a gain of 26.54% for SCHD.
Over three years, DFEN compounded at +71.76% per year against +16.29% for SCHD; over five years the annualized figures are +35.38% and +9.65% respectively. Across the full 9-year window we track, DFEN has the edge at +16.61% annualized vs +11.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEN has been the more volatile fund, with annualized monthly volatility of 66.8% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -91.4% for DFEN and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DFEN charges 0.96% per year while SCHD charges 0.06%. On a $10,000 position that is $96 vs $6 annually, a gap of $90 per year that compounds over a long holding period. On income, DFEN currently yields 7.52% against 3.13% for SCHD.
Holdings Overlap
DFEN and SCHD share 1 holdings out of 151 unique holdings combined, representing a 2.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DFEN | Weight in SCHD | Difference |
|---|---|---|---|
| LMT | 2.66% | 2.99% | 0.33% |
Frequently Asked Questions
Which is cheaper, DFEN or SCHD?
DFEN has an expense ratio of 0.96% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $90 per year of difference.
Which performed better, DFEN or SCHD?
Over the past year DFEN returned +70.52% vs +30.90% for SCHD, so DFEN leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +16.61% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFEN or SCHD?
DFEN has been the more volatile fund at 66.8% annualized versus 13.6% for SCHD. Worst drawdown: DFEN -91.4% vs SCHD -33.4%.
Should I hold both DFEN and SCHD?
DFEN and SCHD have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFEN and SCHD?
DFEN and SCHD share 1 common holdings with a 2.7% weight overlap. Combined, they hold 151 unique securities.
Which pays a higher dividend, DFEN or SCHD?
DFEN yields 7.52% while SCHD yields 3.13%, so DFEN currently pays the higher dividend yield.
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