SCHD vs TMF
SCHD vs TMF
Schwab US Dividend Equity ETF vs Direxion Daily 20+ Year Treasury Bull 3X ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TMF | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.90% | |
| AUM | $103.7B | $2.3B | |
| Dividend Yield | 3.31% | 4.08% | |
| Holdings | 104 | 14 | |
| YTD Return | +24.26% | -13.88% | |
| 1Y Return | +31.38% | -15.75% | |
| 3Y Return (annualized) | +15.08% | -18.84% | |
| 5Y Return (annualized) | +9.72% | -34.00% | |
| Volatility (annualized) | 13.6% | 40.7% | |
| Max Drawdown | -33.4% | -93.3% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Apr 16, 2009 |
SCHD vs TMF Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +31.38% while TMF returned -15.75%. Year to date, SCHD is up 24.26% versus a loss of 13.88% for TMF.
Over three years, SCHD compounded at +15.08% per year against -18.84% for TMF; over five years the annualized figures are +9.72% and -34.00% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -7.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TMF has been the more volatile fund, with annualized monthly volatility of 40.7% 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 -93.3% for TMF. 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TMF charges 0.90%. On a $10,000 position that is $6 vs $90 annually, a gap of $84 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.08% for TMF.
Holdings Overlap
SCHD and TMF share 0 holdings out of 105 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 TMF?
SCHD has an expense ratio of 0.06% while TMF charges 0.90%. SCHD is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, SCHD or TMF?
Over the past year SCHD returned +31.38% vs -15.75% for TMF, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -7.85% for TMF. Past performance does not guarantee future results.
Which is riskier, SCHD or TMF?
TMF has been the more volatile fund at 40.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TMF -93.3%.
Should I hold both SCHD and TMF?
SCHD and TMF have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TMF?
SCHD and TMF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, SCHD or TMF?
SCHD yields 3.31% while TMF yields 4.08%, so TMF currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.