SCHD vs STSM
Schwab US Dividend Equity ETF vs Defiance Daily Target 2X Short TSM ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | SCHD | STSM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.31% | |
| AUM | $112.2B | $1M | |
| Dividend Yield | 3.13% | 0.00% | |
| Holdings | 103 | 14 | |
| YTD Return | +28.59% | -59.79% | |
| 1Y Return | +31.77% | - | |
| 3Y Return (annualized) | +16.70% | - | |
| 5Y Return (annualized) | +10.09% | - | |
| Volatility (annualized) | 13.6% | - | |
| Max Drawdown | -33.4% | -76.2% | |
| Fund Family | Charles Schwab Asset Management | Defiance ETFs, LLC | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Nov 17, 2025 |
SCHD vs STSM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Defiance Daily Target 2X Short TSM ETF (STSM) is a ETF from Defiance ETFs, LLC. Year to date, SCHD is up 28.59% versus a loss of 59.79% for STSM.
Risk: Volatility and Drawdowns
The deepest peak-to-trough decline in our data was -33.4% for SCHD and -76.2% for STSM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
Fees and Cost Over Time
SCHD charges 0.06% per year while STSM charges 1.31%. On a $10,000 position that is $6 vs $131 annually, a gap of $125 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 0.00% for STSM.
Holdings Overlap
SCHD and STSM 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 STSM?
SCHD has an expense ratio of 0.06% while STSM charges 1.31%. SCHD is the cheaper option. On a $10,000 investment, that is $125 per year of difference.
What is the holdings overlap between SCHD and STSM?
SCHD and STSM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or STSM?
SCHD yields 3.13% while STSM yields 0.00%, so SCHD currently pays the higher dividend yield.
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