FAZ vs SCHD
Direxion Daily Financial Bear 3X ETF vs Schwab US Dividend Equity ETF
Which is better, FAZ or SCHD?
Opposite sides of the same exposure.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.78, so holding both offsets the exposure while paying both fees.
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 | FAZ | SCHD |
|---|---|---|
| Expense Ratio | 1.03% | 0.06%Best |
| AUM | $93M | $112.2B |
| Dividend Yield | 2.54% | 3.13% |
| Holdings | 8 | 103 |
| YTD Return | -17.37% | +27.56%Best |
| 1Y Return | -21.07% | +30.29%Best |
| 3Y Return (annualized) | -42.49% | +16.37%Best |
| 5Y Return (annualized) | -31.38% | +10.23%Best |
| Volatility (annualized) | 45.1% | 13.6%Best |
| Max Drawdown | - | -33.4% |
| $10,000 over 5 years | $1,521 | $16,274Best |
| Fund Family | Direxion Shares ETF Trust | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Trading-Inverse Equity | Large Cap Value |
| Inception | Nov 6, 2008 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
FAZ 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 14.9 years both funds cover.
FAZ vs SCHD Performance
Direxion Daily Financial Bear 3X ETF (FAZ) 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 FAZ returned -21.07% while SCHD returned +30.29%. Year to date, FAZ is down 17.37% versus a gain of 27.56% for SCHD.
Over three years, FAZ compounded at -42.49% per year against +16.37% for SCHD; over five years the annualized figures are -31.38% and +10.23% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs -45.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAZ has been the more volatile fund, with annualized monthly volatility of 45.1% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at -0.78. They move opposite each other. Holding both offsets the exposure rather than spreading it, while paying both funds' fees.
Fees and Cost Over Time
FAZ charges 1.03% per year while SCHD charges 0.06%. On a $10,000 position that is $103 vs $6 annually, a gap of $97 per year that compounds over a long holding period. On income, FAZ currently yields 2.54% against 3.13% for SCHD.
Holdings Overlap
We hold position weights for 3 holdings in FAZ and 100 in SCHD, totalling 110.8% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 3 positions we hold weights for in FAZ and 100 in SCHD, against full books of 8 and 103.
You are not choosing between two funds in isolation.
Whichever of FAZ 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, FAZ or SCHD?
FAZ has an expense ratio of 1.03% while SCHD charges 0.06%. SCHD is the cheaper option, by $97 a year on a $10,000 investment.
Which performed better, FAZ or SCHD?
Over the past year FAZ returned -21.07% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FAZ annualized -45.62% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAZ or SCHD?
FAZ has been the more volatile fund at 45.1% annualized versus 13.6% for SCHD.
Should I hold both FAZ and SCHD?
FAZ and SCHD have a monthly-return correlation of -0.78, so they move opposite each other. Holding both offsets the exposure rather than spreading it, and pays both funds' fees on the way. This is information, not a recommendation.
Which pays a higher dividend, FAZ or SCHD?
FAZ yields 2.54% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FAZ?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. The two move opposite each other, correlation -0.78, so holding both offsets the exposure while paying both fees. Which one suits a particular account depends on what it is for. This is information, not a recommendation.