DRIP vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricDRIPSCHDWinner
Expense Ratio1.01%0.06%
AUM$115M$103.7B
Dividend Yield29.55%3.31%
Holdings8104
YTD Return-47.21%+24.26%
1Y Return-54.86%+31.38%
3Y Return (annualized)-21.76%+15.08%
5Y Return (annualized)-44.38%+9.72%
Volatility (annualized)91.6%13.6%
Max Drawdown-99.9%-33.4%
Fund FamilyDirexion Shares ETF TrustCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionMay 28, 2015Oct 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 -54.86% while SCHD returned +31.38%. Year to date, DRIP is down 47.21% versus a gain of 24.26% for SCHD.

Over three years, DRIP compounded at -21.76% per year against +15.08% for SCHD; over five years the annualized figures are -44.38% and +9.72% respectively. Across the full 11-year window we track, SCHD has the edge at +11.39% annualized vs -40.64%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DRIP has been the more volatile fund, with annualized monthly volatility of 91.6% 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 29.55% against 3.31% for SCHD.

Holdings Overlap

0.0%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 -54.86% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), DRIP annualized -40.64% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, DRIP or SCHD?

DRIP has been the more volatile fund at 91.6% 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 29.55% while SCHD yields 3.31%, so DRIP currently pays the higher dividend yield.

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