LABU vs SCHD

Quick Verdict

SCHD has a lower expense ratio. LABU delivered stronger 1-year returns. LABU offers more diversification with 154 holdings.

Lower Fees: SCHDHigher Returns: LABUMore Diversified: LABU

Side-by-Side Comparison

MetricLABUSCHDWinner
Expense Ratio0.96%0.06%
AUM$533M$103.7B
Dividend Yield0.35%3.31%
Holdings160104
YTD Return+82.06%+25.58%
1Y Return+353.88%+31.06%
3Y Return (annualized)+41.73%+15.55%
5Y Return (annualized)-24.29%+9.61%
Volatility (annualized)85.2%13.6%
Max Drawdown-99.2%-33.4%
Fund FamilyDirexion Shares ETF TrustCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionMay 28, 2015Oct 20, 2011

LABU vs SCHD Performance

Direxion Daily S&P Biotech Bull 3X ETF (LABU) 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 LABU returned +353.88% while SCHD returned +31.06%. Year to date, LABU is up 82.06% versus a gain of 25.58% for SCHD.

Over three years, LABU compounded at +41.73% per year against +15.55% for SCHD; over five years the annualized figures are -24.29% and +9.61% respectively. Across the full 11-year window we track, SCHD has the edge at +11.46% annualized vs -19.00%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LABU has been the more volatile fund, with annualized monthly volatility of 85.2% 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 -99.2% for LABU 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LABU 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, LABU currently yields 0.35% against 3.31% for SCHD.

Holdings Overlap

0.4%overlap

LABU and SCHD share 1 holdings out of 253 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in LABUWeight in SCHDDifference
AMGN0.43%4.25%3.82%

Frequently Asked Questions

Which is cheaper, LABU or SCHD?

LABU 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, LABU or SCHD?

Over the past year LABU returned +353.88% vs +31.06% for SCHD, so LABU leads on 1-year performance. Over the longest common window we track (11 years), LABU annualized -19.00% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, LABU or SCHD?

LABU has been the more volatile fund at 85.2% annualized versus 13.6% for SCHD. Worst drawdown: LABU -99.2% vs SCHD -33.4%.

Should I hold both LABU and SCHD?

LABU and SCHD have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LABU and SCHD?

LABU and SCHD share 1 common holdings with a 0.4% weight overlap. Combined, they hold 253 unique securities.

Which pays a higher dividend, LABU or SCHD?

LABU yields 0.35% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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