SCHD vs TSMX

Quick Verdict

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

Lower Fees: SCHDHigher Returns: TSMXMore Diversified: SCHD

Side-by-Side Comparison

MetricSCHDTSMXWinner
Expense Ratio0.06%0.99%
AUM$103.7B$587M
Dividend Yield3.31%3.95%
Holdings10410
YTD Return+24.26%+45.15%
1Y Return+31.38%+132.02%
3Y Return (annualized)+15.08%-
5Y Return (annualized)+9.72%-
Volatility (annualized)13.6%72.7%
Max Drawdown-33.4%-63.8%
Fund FamilyCharles Schwab Asset ManagementDirexion Shares ETF Trust
CategoryEquityAlternative
InceptionOct 20, 2011Oct 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 +31.38% while TSMX returned +132.02%. Year to date, SCHD is up 24.26% versus a gain of 45.15% 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 3.31% against 3.95% for TSMX.

Holdings Overlap

0.0%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 +31.38% vs +132.02% for TSMX, so TSMX leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.39% vs +92.08% 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 3.31% while TSMX yields 3.95%, so TSMX currently pays the higher dividend yield.

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