SCHD vs SEF
Schwab US Dividend Equity ETF vs ProShares Short Financials
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | SEF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.95% | |
| AUM | $108.7B | $13M | |
| Dividend Yield | 3.13% | 3.44% | |
| Holdings | 104 | 10 | |
| YTD Return | +27.93% | -3.80% | |
| 1Y Return | +30.06% | -4.42% | |
| 3Y Return (annualized) | +16.25% | -13.35% | |
| 5Y Return (annualized) | +10.03% | -7.37% | |
| Volatility (annualized) | 13.6% | 19.7% | |
| Max Drawdown | -33.4% | -96.7% | |
| Fund Family | Charles Schwab Asset Management | ProShares | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Jun 10, 2008 |
SCHD vs SEF Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and ProShares Short Financials (SEF) is a ETF from ProShares. Over the past year SCHD returned +30.06% while SEF returned -4.42%. Year to date, SCHD is up 27.93% versus a loss of 3.80% for SEF.
Over three years, SCHD compounded at +16.25% per year against -13.35% for SEF; over five years the annualized figures are +10.03% and -7.37% respectively. Across the full 15-year window we track, SCHD has the edge at +11.56% annualized vs -14.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SEF has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -96.7% for SEF. 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 SEF 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 3.44% for SEF.
Holdings Overlap
SCHD and SEF 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 SEF?
SCHD has an expense ratio of 0.06% while SEF 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 SEF?
Over the past year SCHD returned +30.06% vs -4.42% for SEF, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.56% vs -14.45% for SEF. Past performance does not guarantee future results.
Which is riskier, SCHD or SEF?
SEF has been the more volatile fund at 19.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SEF -96.7%.
Should I hold both SCHD and SEF?
SCHD and SEF 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 SEF?
SCHD and SEF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or SEF?
SCHD yields 3.13% while SEF yields 3.44%, so SEF currently pays the higher dividend yield.
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