DFEN vs SCHD
Direxion Daily Aerospace & Defense Bull 3X ETF vs Schwab US Dividend Equity ETF
Which is better, DFEN or SCHD?
Multi Alternative against Large Cap Value.
SCHD has a lower expense ratio. DFEN led over 3Y and 5Y, SCHD over 1Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 79.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DFEN | SCHD |
|---|---|---|
| Expense Ratio | 0.96% | 0.06%Best |
| AUM | $322M | $112.1B |
| Dividend Yield | 7.52% | 3.00% |
| Holdings | 59 | 103 |
| YTD Return | -27.17% | +21.33%Best |
| 1Y Return | -11.35% | +25.15%Best |
| 3Y Return (annualized) | +55.96%Best | +15.43% |
| 5Y Return (annualized) | +22.86%Best | +9.32% |
| Volatility (annualized) | 67.0% | 15.8%Best |
| Max Drawdown | -91.4% | -33.4%Best |
| $10,000 over 5 years | $27,993Best | $15,613 |
| Top 10 Weight | 79.5% | 41.8%Best |
| Fund Family | Direxion Shares ETF Trust | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Value |
| Inception | May 3, 2017 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: May 3, 2017 to Sep 24, 2026 (9.4 years).
DFEN vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.4 years both funds cover.
DFEN vs SCHD Performance
Direxion Daily Aerospace & Defense Bull 3X ETF (DFEN) is an ETF from Direxion Shares ETF Trust and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year DFEN returned -11.35% while SCHD returned +25.15%. Year to date, DFEN is down 27.17% versus a gain of 21.33% for SCHD.
Over three years, DFEN compounded at +55.96% per year against +15.43% for SCHD; over five years the annualized figures are +22.86% and +9.32% respectively. Across the full 9-year window we track, SCHD has the edge at +11.13% annualized vs +9.85%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DFEN has been the more volatile fund, with annualized monthly volatility of 67.0% compared with 15.8% 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 what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.72. 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 3.00% for SCHD.
Holdings Overlap
3.3% of DFEN's money is in holdings SCHD also owns. 2.8% of SCHD's money is in holdings DFEN also owns.
DFEN and SCHD share little of their money.
1 positions in common, counted across the 50 positions we hold weights for in DFEN and 100 in SCHD, against full books of 59 and 103.
What only one of them owns
Our book lists 98 positions for SCHD that do not appear in our book for DFEN (97.2% of the fund), and 48 for DFEN that do not appear in SCHD (98.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in DFEN | Weight in SCHD | Difference |
|---|---|---|---|
| LMTLockheed Martin Corp | 3.34% | 2.78% | 0.56% |
You are not choosing between two funds in isolation.
Whichever of DFEN and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $90 a year on a $10,000 investment.
Which performed better, DFEN or SCHD?
Over the past year DFEN returned -11.35% vs +25.15% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), DFEN annualized +9.85% vs +11.13% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFEN or SCHD?
DFEN has been the more volatile fund at 67.0% annualized versus 15.8% 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 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DFEN and SCHD?
3.3% of DFEN's money is in holdings SCHD also owns. 2.8% of SCHD's is in holdings DFEN also owns. They hold 1 positions in common, counted across the 50 positions we hold weights for in DFEN and 100 in SCHD.
Which pays a higher dividend, DFEN or SCHD?
DFEN yields 7.52% while SCHD yields 3.00%, so DFEN currently pays the higher dividend yield.
Is SCHD better than DFEN?
SCHD has a lower expense ratio. DFEN led over 3Y and 5Y, SCHD over 1Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 79.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.