SCHD vs TSMZ
Schwab US Dividend Equity ETF vs Direxion Daily TSM Bear 1X 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 | TSMZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.01% | |
| AUM | $103.7B | $3M | |
| Dividend Yield | 3.31% | 5.08% | |
| Holdings | 104 | 7 | |
| YTD Return | +25.62% | -30.58% | |
| 1Y Return | +32.62% | -48.93% | |
| 3Y Return (annualized) | +15.58% | - | |
| 5Y Return (annualized) | +9.63% | - | |
| Volatility (annualized) | 13.6% | 33.9% | |
| Max Drawdown | -33.4% | -74.0% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Oct 3, 2024 |
SCHD vs TSMZ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily TSM Bear 1X ETF (TSMZ) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +32.62% while TSMZ returned -48.93%. Year to date, SCHD is up 25.62% versus a loss of 30.58% for TSMZ.
Risk: Volatility and Drawdowns
TSMZ has been the more volatile fund, with annualized monthly volatility of 33.9% 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 -74.0% for TSMZ. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TSMZ 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 5.08% for TSMZ.
Holdings Overlap
SCHD and TSMZ share 0 holdings out of 103 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 TSMZ?
SCHD has an expense ratio of 0.06% while TSMZ 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 TSMZ?
Over the past year SCHD returned +32.62% vs -48.93% for TSMZ, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.47% vs -44.20% for TSMZ. Past performance does not guarantee future results.
Which is riskier, SCHD or TSMZ?
TSMZ has been the more volatile fund at 33.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TSMZ -74.0%.
Should I hold both SCHD and TSMZ?
SCHD and TSMZ have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TSMZ?
SCHD and TSMZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, SCHD or TSMZ?
SCHD yields 3.31% while TSMZ yields 5.08%, so TSMZ currently pays the higher dividend yield.
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