SCHD vs TYO
Schwab US Dividend Equity ETF vs Direxion Daily 7-10 Year Treasury Bear 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 | TYO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.00% | |
| AUM | $103.7B | $12M | |
| Dividend Yield | 3.31% | 2.62% | |
| Holdings | 104 | 6 | |
| YTD Return | +24.26% | +10.84% | |
| 1Y Return | +31.38% | +11.31% | |
| 3Y Return (annualized) | +15.08% | +6.14% | |
| 5Y Return (annualized) | +9.72% | +14.69% | |
| Volatility (annualized) | 13.6% | 19.3% | |
| Max Drawdown | -33.4% | -90.4% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Apr 16, 2009 |
SCHD vs TYO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily 7-10 Year Treasury Bear 3X ETF (TYO) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +31.38% while TYO returned +11.31%. Year to date, SCHD is up 24.26% versus a gain of 10.84% for TYO.
Over three years, SCHD compounded at +15.08% per year against +6.14% for TYO; over five years the annualized figures are +9.72% and +14.69% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -7.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TYO has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -90.4% for TYO. 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 -0.04. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TYO charges 1.00%. On a $10,000 position that is $6 vs $100 annually, a gap of $94 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.62% for TYO.
Holdings Overlap
SCHD and TYO 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 TYO?
SCHD has an expense ratio of 0.06% while TYO charges 1.00%. SCHD is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, SCHD or TYO?
Over the past year SCHD returned +31.38% vs +11.31% for TYO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -7.26% for TYO. Past performance does not guarantee future results.
Which is riskier, SCHD or TYO?
TYO has been the more volatile fund at 19.3% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TYO -90.4%.
Should I hold both SCHD and TYO?
SCHD and TYO have a monthly-return correlation of -0.04, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TYO?
SCHD and TYO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, SCHD or TYO?
SCHD yields 3.31% while TYO yields 2.62%, so SCHD currently pays the higher dividend yield.
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