SCHD vs SOXL
Schwab US Dividend Equity ETF vs Direxion Daily Semiconductor Bull 3X ETF
Quick Verdict
SCHD has a lower expense ratio. SOXL delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SOXL | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.75% | |
| AUM | $103.7B | $18.8B | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 43 | |
| YTD Return | +25.62% | +181.54% | |
| 1Y Return | +32.62% | +419.33% | |
| 3Y Return (annualized) | +15.58% | +80.50% | |
| 5Y Return (annualized) | +9.63% | +25.19% | |
| Volatility (annualized) | 13.6% | 87.7% | |
| Max Drawdown | -33.4% | -90.5% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Mar 11, 2010 |
SCHD vs SOXL Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +32.62% while SOXL returned +419.33%. Year to date, SCHD is up 25.62% versus a gain of 181.54% for SOXL.
Over three years, SCHD compounded at +15.58% per year against +80.50% for SOXL; over five years the annualized figures are +9.63% and +25.19% respectively. Across the full 15-year window we track, SOXL has the edge at +38.32% annualized vs +11.47%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SOXL has been the more volatile fund, with annualized monthly volatility of 87.7% 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 -90.5% for SOXL. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SOXL charges 0.75%. On a $10,000 position that is $6 vs $75 annually, a gap of $69 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for SOXL.
Holdings Overlap
SCHD and SOXL share 3 holdings out of 129 unique holdings combined, representing a 5.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or SOXL?
SCHD has an expense ratio of 0.06% while SOXL charges 0.75%. SCHD is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, SCHD or SOXL?
Over the past year SCHD returned +32.62% vs +419.33% for SOXL, so SOXL leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs +38.32% for SOXL. Past performance does not guarantee future results.
Which is riskier, SCHD or SOXL?
SOXL has been the more volatile fund at 87.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs SOXL -90.5%.
Should I hold both SCHD and SOXL?
SCHD and SOXL have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SOXL?
SCHD and SOXL share 3 common holdings with a 5.5% weight overlap. Combined, they hold 129 unique securities.
Which pays a higher dividend, SCHD or SOXL?
SCHD yields 3.31% while SOXL yields 0.00%, so SCHD currently pays the higher dividend yield.
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