SCHD vs SDD

SCHD vs SDD
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Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 103 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDSDDWinner
Expense Ratio0.06%0.95%
AUM$112.2B$1M
Dividend Yield3.13%6.30%
Holdings1033
YTD Return+27.89%-29.44%
1Y Return+29.93%-34.95%
3Y Return (annualized)+16.13%-24.10%
5Y Return (annualized)+10.00%-16.49%
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 +29.93% while SDD returned -34.95%. Year to date, SCHD is up 27.89% versus a loss of 29.44% for SDD.

Over three years, SCHD compounded at +16.13% per year against -24.10% for SDD; over five years the annualized figures are +10.00% and -16.49% respectively. Across the full 15-year window we track, SCHD has the edge at +11.56% annualized vs -29.46%. 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 3.13% against 6.30% 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 +29.93% vs -34.95% for SDD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.56% vs -29.46% 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 3.13% while SDD yields 6.30%, so SDD currently pays the higher dividend yield.

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