PALU vs SCHD

Quick Verdict

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

Lower Fees: SCHDHigher Returns: PALUMore Diversified: SCHD

Side-by-Side Comparison

MetricPALUSCHDWinner
Expense Ratio1.08%0.06%
AUM$25M$103.7B
Dividend Yield3.75%3.31%
Holdings9104
YTD Return+279.71%+25.58%
1Y Return+269.85%+31.06%
3Y Return (annualized)-+15.55%
5Y Return (annualized)-+9.61%
Volatility (annualized)134.4%13.6%
Max Drawdown-62.2%-33.4%
Fund FamilyDirexion Shares ETF TrustCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionMar 26, 2025Oct 20, 2011

PALU vs SCHD Performance

Direxion Daily PANW Bull 2X ETF (PALU) 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 PALU returned +269.85% while SCHD returned +31.06%. Year to date, PALU is up 279.71% versus a gain of 25.58% for SCHD.

Risk: Volatility and Drawdowns

PALU has been the more volatile fund, with annualized monthly volatility of 134.4% 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 -62.2% for PALU 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 -0.21. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PALU charges 1.08% per year while SCHD charges 0.06%. On a $10,000 position that is $108 vs $6 annually, a gap of $102 per year that compounds over a long holding period. On income, PALU currently yields 3.75% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

PALU and SCHD share 0 holdings out of 105 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, PALU or SCHD?

PALU has an expense ratio of 1.08% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $102 per year of difference.

Which performed better, PALU or SCHD?

Over the past year PALU returned +269.85% vs +31.06% for SCHD, so PALU leads on 1-year performance. Over the longest common window we track (1 years), PALU annualized +120.72% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, PALU or SCHD?

PALU has been the more volatile fund at 134.4% annualized versus 13.6% for SCHD. Worst drawdown: PALU -62.2% vs SCHD -33.4%.

Should I hold both PALU and SCHD?

PALU and SCHD have a monthly-return correlation of -0.21, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PALU and SCHD?

PALU and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.

Which pays a higher dividend, PALU or SCHD?

PALU yields 3.75% while SCHD yields 3.31%, so PALU currently pays the higher dividend yield.

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