DRIP vs SCHD
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | DRIP | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.06% | |
| AUM | $107M | $108.7B | |
| Dividend Yield | 3.97% | 3.13% | |
| Holdings | 8 | 104 | |
| YTD Return | -57.96% | +27.67% | |
| 1Y Return | -58.72% | +29.56% | |
| 3Y Return (annualized) | -27.39% | +16.53% | |
| 5Y Return (annualized) | -45.73% | +9.95% | |
| Volatility (annualized) | 91.5% | 13.6% | |
| Max Drawdown | -99.9% | -33.4% | |
| Fund Family | Direxion Shares ETF Trust | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | May 28, 2015 | Oct 20, 2011 |
DRIP vs SCHD Performance
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X ETF (DRIP) 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 DRIP returned -58.72% while SCHD returned +29.56%. Year to date, DRIP is down 57.96% versus a gain of 27.67% for SCHD.
Over three years, DRIP compounded at -27.39% per year against +16.53% for SCHD; over five years the annualized figures are -45.73% and +9.95% respectively. Across the full 11-year window we track, SCHD has the edge at +11.55% annualized vs -41.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DRIP has been the more volatile fund, with annualized monthly volatility of 91.5% 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 -99.9% for DRIP 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 -0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DRIP charges 1.01% per year while SCHD charges 0.06%. On a $10,000 position that is $101 vs $6 annually, a gap of $95 per year that compounds over a long holding period. On income, DRIP currently yields 3.97% against 3.13% for SCHD.
Holdings Overlap
DRIP and SCHD share 0 holdings out of 103 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DRIP or SCHD?
DRIP has an expense ratio of 1.01% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $95 per year of difference.
Which performed better, DRIP or SCHD?
Over the past year DRIP returned -58.72% vs +29.56% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), DRIP annualized -41.68% vs +11.55% for SCHD. Past performance does not guarantee future results.
Which is riskier, DRIP or SCHD?
DRIP has been the more volatile fund at 91.5% annualized versus 13.6% for SCHD. Worst drawdown: DRIP -99.9% vs SCHD -33.4%.
Should I hold both DRIP and SCHD?
DRIP and SCHD have a monthly-return correlation of -0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DRIP and SCHD?
DRIP and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, DRIP or SCHD?
DRIP yields 3.97% while SCHD yields 3.13%, so DRIP currently pays the higher dividend yield.
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