SCHD vs SOFX

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

MetricSCHDSOFXWinner
Expense Ratio0.06%1.29%
AUM$103.7B$75M
Dividend Yield3.31%0.00%
Holdings10411
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 FamilyCharles Schwab Asset ManagementDefiance ETFs, LLC
CategoryEquityAlternative
InceptionOct 20, 2011Jan 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

0.0%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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