SCHD vs TSMX
Schwab US Dividend Equity ETF vs Direxion Daily TSM Bull 2X ETF
Quick Verdict
SCHD has a lower expense ratio. TSMX delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | TSMX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.99% | |
| AUM | $108.7B | $668M | |
| Dividend Yield | 3.13% | 5.70% | |
| Holdings | 104 | 9 | |
| YTD Return | +27.67% | +49.11% | |
| 1Y Return | +29.56% | +147.81% | |
| 3Y Return (annualized) | +16.53% | - | |
| 5Y Return (annualized) | +9.95% | - | |
| Volatility (annualized) | 13.6% | 72.7% | |
| Max Drawdown | -33.4% | -63.8% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Oct 3, 2024 |
SCHD vs TSMX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily TSM Bull 2X ETF (TSMX) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +29.56% while TSMX returned +147.81%. Year to date, SCHD is up 27.67% versus a gain of 49.11% for TSMX.
Risk: Volatility and Drawdowns
TSMX has been the more volatile fund, with annualized monthly volatility of 72.7% 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 -63.8% for TSMX. 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TSMX charges 0.99%. On a $10,000 position that is $6 vs $99 annually, a gap of $93 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 5.70% for TSMX.
Holdings Overlap
SCHD and TSMX 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 TSMX?
SCHD has an expense ratio of 0.06% while TSMX charges 0.99%. SCHD is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, SCHD or TSMX?
Over the past year SCHD returned +29.56% vs +147.81% for TSMX, so TSMX leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.55% vs +91.19% for TSMX. Past performance does not guarantee future results.
Which is riskier, SCHD or TSMX?
TSMX has been the more volatile fund at 72.7% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TSMX -63.8%.
Should I hold both SCHD and TSMX?
SCHD and TSMX have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TSMX?
SCHD and TSMX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, SCHD or TSMX?
SCHD yields 3.13% while TSMX yields 5.70%, so TSMX currently pays the higher dividend yield.
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