MSFD vs SCHD
Direxion Daily MSFT Bear 1X 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 | MSFD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.06% | |
| AUM | $18M | $108.7B | |
| Dividend Yield | 4.03% | 3.13% | |
| Holdings | 6 | 104 | |
| YTD Return | -7.37% | +25.69% | |
| 1Y Return | +2.01% | +30.41% | |
| 3Y Return (annualized) | -13.58% | +16.03% | |
| 5Y Return (annualized) | - | +9.64% | |
| Volatility (annualized) | 26.0% | 13.6% | |
| Max Drawdown | -59.9% | -33.4% | |
| Fund Family | Direxion Shares ETF Trust | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Sep 7, 2022 | Oct 20, 2011 |
MSFD vs SCHD Performance
Direxion Daily MSFT Bear 1X ETF (MSFD) 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 MSFD returned +2.01% while SCHD returned +30.41%. Year to date, MSFD is down 7.37% versus a gain of 25.69% for SCHD.
Over three years, MSFD compounded at -13.58% per year against +16.03% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.46% annualized vs -16.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSFD has been the more volatile fund, with annualized monthly volatility of 26.0% 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 -59.9% for MSFD 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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFD charges 1.02% per year while SCHD charges 0.06%. On a $10,000 position that is $102 vs $6 annually, a gap of $96 per year that compounds over a long holding period. On income, MSFD currently yields 4.03% against 3.13% for SCHD.
Holdings Overlap
MSFD 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, MSFD or SCHD?
MSFD has an expense ratio of 1.02% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, MSFD or SCHD?
Over the past year MSFD returned +2.01% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), MSFD annualized -16.00% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, MSFD or SCHD?
MSFD has been the more volatile fund at 26.0% annualized versus 13.6% for SCHD. Worst drawdown: MSFD -59.9% vs SCHD -33.4%.
Should I hold both MSFD and SCHD?
MSFD and SCHD have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFD and SCHD?
MSFD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, MSFD or SCHD?
MSFD yields 4.03% while SCHD yields 3.13%, so MSFD currently pays the higher dividend yield.
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