SCHD vs SEF

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

MetricSCHDSEFWinner
Expense Ratio0.06%0.95%
AUM$103.7B$13M
Dividend Yield3.31%3.25%
Holdings10410
YTD Return+24.26%-3.17%
1Y Return+31.38%-8.02%
3Y Return (annualized)+15.08%-12.52%
5Y Return (annualized)+9.72%-7.44%
Volatility (annualized)13.6%19.7%
Max Drawdown-33.4%-96.7%
Fund FamilyCharles Schwab Asset ManagementProShares
CategoryEquityAlternative
InceptionOct 20, 2011Jun 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 +31.38% while SEF returned -8.02%. Year to date, SCHD is up 24.26% versus a loss of 3.17% for SEF.

Over three years, SCHD compounded at +15.08% per year against -12.52% for SEF; over five years the annualized figures are +9.72% and -7.44% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -14.46%. 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 3.31% against 3.25% for SEF.

Holdings Overlap

0.0%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 +31.38% vs -8.02% for SEF, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -14.46% 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 3.31% while SEF yields 3.25%, so SCHD currently pays the higher dividend yield.

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