SCHD vs SDS

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

MetricSCHDSDSWinner
Expense Ratio0.06%0.91%
AUM$103.7B$428M
Dividend Yield3.31%5.33%
Holdings10420
YTD Return+25.62%-20.05%
1Y Return+32.62%-29.33%
3Y Return (annualized)+15.58%-28.49%
5Y Return (annualized)+9.63%-21.21%
Volatility (annualized)13.6%28.3%
Max Drawdown-33.4%-99.9%
Fund FamilyCharles Schwab Asset ManagementProShares
CategoryEquityAlternative
InceptionOct 20, 2011Jul 11, 2006

SCHD vs SDS Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ProShares UltraShort S&P500 (SDS) is a ETF from ProShares. Over the past year SCHD returned +32.62% while SDS returned -29.33%. Year to date, SCHD is up 25.62% versus a loss of 20.05% for SDS.

Over three years, SCHD compounded at +15.58% per year against -28.49% for SDS; over five years the annualized figures are +9.63% and -21.21% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs -26.33%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SDS has been the more volatile fund, with annualized monthly volatility of 28.3% 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 -99.9% for SDS. 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 -0.82. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while SDS charges 0.91%. On a $10,000 position that is $6 vs $91 annually, a gap of $85 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.33% for SDS.

Holdings Overlap

0.0%overlap

SCHD and SDS share 0 holdings out of 101 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, SCHD or SDS?

SCHD has an expense ratio of 0.06% while SDS charges 0.91%. SCHD is the cheaper option. On a $10,000 investment, that is $85 per year of difference.

Which performed better, SCHD or SDS?

Over the past year SCHD returned +32.62% vs -29.33% for SDS, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs -26.33% for SDS. Past performance does not guarantee future results.

Which is riskier, SCHD or SDS?

SDS has been the more volatile fund at 28.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SDS -99.9%.

Should I hold both SCHD and SDS?

SCHD and SDS have a monthly-return correlation of -0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and SDS?

SCHD and SDS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, SCHD or SDS?

SCHD yields 3.31% while SDS yields 5.33%, so SDS currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.