SCHD vs TECL

Quick Verdict

SCHD has a lower expense ratio. TECL delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: TECLMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTECLWinner
Expense Ratio0.06%0.87%
AUM$103.7B$5.0B
Dividend Yield3.31%3.62%
Holdings10486
YTD Return+24.26%+79.46%
1Y Return+31.38%+117.94%
3Y Return (annualized)+15.08%+66.03%
5Y Return (annualized)+9.72%+29.51%
Volatility (annualized)13.6%60.1%
Max Drawdown-33.4%-78.0%
Fund FamilyCharles Schwab Asset ManagementDirexion Shares ETF Trust
CategoryEquityAlternative
InceptionOct 20, 2011Dec 17, 2008

SCHD vs TECL Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily Technology Bull 3X ETF (TECL) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +31.38% while TECL returned +117.94%. Year to date, SCHD is up 24.26% versus a gain of 79.46% for TECL.

Over three years, SCHD compounded at +15.08% per year against +66.03% for TECL; over five years the annualized figures are +9.72% and +29.51% respectively. Across the full 14-year window we track, TECL has the edge at +45.05% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TECL has been the more volatile fund, with annualized monthly volatility of 60.1% 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 -78.0% for TECL. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SCHD charges 0.06% per year while TECL charges 0.87%. On a $10,000 position that is $6 vs $87 annually, a gap of $81 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 3.62% for TECL.

Holdings Overlap

2.1%overlap

SCHD and TECL share 4 holdings out of 174 unique holdings combined, representing a 2.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SCHDWeight in TECLDifference
TXN3.70%1.02%2.68%
QCOM2.72%0.78%1.94%
ACN2.24%0.30%1.94%
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Frequently Asked Questions

Which is cheaper, SCHD or TECL?

SCHD has an expense ratio of 0.06% while TECL charges 0.87%. SCHD is the cheaper option. On a $10,000 investment, that is $81 per year of difference.

Which performed better, SCHD or TECL?

Over the past year SCHD returned +31.38% vs +117.94% for TECL, so TECL leads on 1-year performance. Over the longest common window we track (14 years), SCHD annualized +11.39% vs +45.05% for TECL. Past performance does not guarantee future results.

Which is riskier, SCHD or TECL?

TECL has been the more volatile fund at 60.1% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TECL -78.0%.

Should I hold both SCHD and TECL?

SCHD and TECL have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SCHD and TECL?

SCHD and TECL share 4 common holdings with a 2.1% weight overlap. Combined, they hold 174 unique securities.

Which pays a higher dividend, SCHD or TECL?

SCHD yields 3.31% while TECL yields 3.62%, so TECL currently pays the higher dividend yield.

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