SCHD vs SDD

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

MetricSCHDSDDWinner
Expense Ratio0.06%0.95%
AUM$103.7B$1M
Dividend Yield3.31%6.58%
Holdings1044
YTD Return+24.26%-33.91%
1Y Return+31.38%-45.94%
3Y Return (annualized)+15.08%-24.92%
5Y Return (annualized)+9.72%-18.29%
Volatility (annualized)13.6%38.8%
Max Drawdown-33.4%-100.0%
Fund FamilyCharles Schwab Asset ManagementProShares
CategoryEquityAlternative
InceptionOct 20, 2011Jan 23, 2007

SCHD vs SDD Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ProShares UltraShort SmallCap600 (SDD) is a ETF from ProShares. Over the past year SCHD returned +31.38% while SDD returned -45.94%. Year to date, SCHD is up 24.26% versus a loss of 33.91% for SDD.

Over three years, SCHD compounded at +15.08% per year against -24.92% for SDD; over five years the annualized figures are +9.72% and -18.29% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -29.78%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SDD has been the more volatile fund, with annualized monthly volatility of 38.8% 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 -33.4% for SCHD and -100.0% for SDD. 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 -0.80. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SDD charges 0.95%. On a $10,000 position that is $6 vs $95 annually, a gap of $89 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 6.58% for SDD.

Frequently Asked Questions

Which is cheaper, SCHD or SDD?

SCHD has an expense ratio of 0.06% while SDD charges 0.95%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.

Which performed better, SCHD or SDD?

Over the past year SCHD returned +31.38% vs -45.94% for SDD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -29.78% for SDD. Past performance does not guarantee future results.

Which is riskier, SCHD or SDD?

SDD has been the more volatile fund at 38.8% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SDD -100.0%.

Should I hold both SCHD and SDD?

SCHD and SDD have a monthly-return correlation of -0.80, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, SCHD or SDD?

SCHD yields 3.31% while SDD yields 6.58%, so SDD currently pays the higher dividend yield.

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