SCHD vs SOFX
SCHD vs SOFX
Schwab US Dividend Equity ETF vs Defiance Daily Target 2X Long SOFI ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SOFX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.29% | |
| AUM | $103.7B | $75M | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 11 | |
| YTD Return | +24.26% | -67.65% | |
| 1Y Return | +31.38% | -60.63% | |
| 3Y Return (annualized) | +15.08% | - | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 107.0% | |
| Max Drawdown | -33.4% | -84.8% | |
| Fund Family | Charles Schwab Asset Management | Defiance ETFs, LLC | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Jan 15, 2025 |
SCHD vs SOFX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Defiance Daily Target 2X Long SOFI ETF (SOFX) is a ETF from Defiance ETFs, LLC. Over the past year SCHD returned +31.38% while SOFX returned -60.63%. Year to date, SCHD is up 24.26% versus a loss of 67.65% for SOFX.
Risk: Volatility and Drawdowns
SOFX has been the more volatile fund, with annualized monthly volatility of 107.0% 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 -84.8% for SOFX. 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 -0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SOFX charges 1.29%. On a $10,000 position that is $6 vs $129 annually, a gap of $123 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SOFX.
Holdings Overlap
SCHD and SOFX share 0 holdings out of 102 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 SOFX?
SCHD has an expense ratio of 0.06% while SOFX charges 1.29%. SCHD is the cheaper option. On a $10,000 investment, that is $123 per year of difference.
Which performed better, SCHD or SOFX?
Over the past year SCHD returned +31.38% vs -60.63% for SOFX, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.39% vs -34.91% for SOFX. Past performance does not guarantee future results.
Which is riskier, SCHD or SOFX?
SOFX has been the more volatile fund at 107.0% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SOFX -84.8%.
Should I hold both SCHD and SOFX?
SCHD and SOFX have a monthly-return correlation of -0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SOFX?
SCHD and SOFX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or SOFX?
SCHD yields 3.31% while SOFX yields 0.00%, so SCHD currently pays the higher dividend yield.
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