SCHD vs SDS
Schwab US Dividend Equity ETF vs ProShares UltraShort S&P500
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | SCHD | SDS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.91% | |
| AUM | $112.2B | $385M | |
| Dividend Yield | 3.13% | 5.29% | |
| Holdings | 103 | 20 | |
| YTD Return | +27.89% | -18.92% | |
| 1Y Return | +29.93% | -27.74% | |
| 3Y Return (annualized) | +16.13% | -27.92% | |
| 5Y Return (annualized) | +10.00% | -20.41% | |
| Volatility (annualized) | 13.6% | 28.3% | |
| Max Drawdown | -33.4% | -99.9% | |
| Fund Family | Charles Schwab Asset Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Jul 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 +29.93% while SDS returned -27.74%. Year to date, SCHD is up 27.89% versus a loss of 18.92% for SDS.
Over three years, SCHD compounded at +16.13% per year against -27.92% for SDS; over five years the annualized figures are +10.00% and -20.41% respectively. Across the full 15-year window we track, SCHD has the edge at +11.56% annualized vs -26.22%. 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 3.13% against 5.29% for SDS.
Holdings 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 +29.93% vs -27.74% for SDS, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.56% vs -26.22% 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 3.13% while SDS yields 5.29%, so SDS currently pays the higher dividend yield.
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