SCHD vs TECS

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

MetricSCHDTECSWinner
Expense Ratio0.06%1.01%
AUM$103.7B$77M
Dividend Yield3.31%89.69%
Holdings10412
YTD Return+24.26%-64.48%
1Y Return+31.38%-73.89%
3Y Return (annualized)+15.08%-64.18%
5Y Return (annualized)+9.72%-56.54%
Volatility (annualized)13.6%51.9%
Max Drawdown-33.4%-100.0%
Fund FamilyCharles Schwab Asset ManagementDirexion Shares ETF Trust
CategoryEquityAlternative
InceptionOct 20, 2011Dec 17, 2008

SCHD vs TECS Performance

Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily Technology Bear 3X ETF (TECS) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +31.38% while TECS returned -73.89%. Year to date, SCHD is up 24.26% versus a loss of 64.48% for TECS.

Over three years, SCHD compounded at +15.08% per year against -64.18% for TECS; over five years the annualized figures are +9.72% and -56.54% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -57.94%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TECS has been the more volatile fund, with annualized monthly volatility of 51.9% 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 -100.0% for TECS. 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 TECS charges 1.01%. On a $10,000 position that is $6 vs $101 annually, a gap of $95 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 89.69% for TECS.

Holdings Overlap

0.0%overlap

SCHD and TECS share 0 holdings out of 104 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 TECS?

SCHD has an expense ratio of 0.06% while TECS charges 1.01%. SCHD is the cheaper option. On a $10,000 investment, that is $95 per year of difference.

Which performed better, SCHD or TECS?

Over the past year SCHD returned +31.38% vs -73.89% for TECS, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -57.94% for TECS. Past performance does not guarantee future results.

Which is riskier, SCHD or TECS?

TECS has been the more volatile fund at 51.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TECS -100.0%.

Should I hold both SCHD and TECS?

SCHD and TECS 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 TECS?

SCHD and TECS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, SCHD or TECS?

SCHD yields 3.31% while TECS yields 89.69%, so TECS currently pays the higher dividend yield.

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