SCHD vs TZA
Schwab US Dividend Equity ETF vs Direxion Daily Small Cap 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 | TZA | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.99% | |
| AUM | $103.7B | $232M | |
| Dividend Yield | 3.31% | 51.31% | |
| Holdings | 104 | 11 | |
| YTD Return | +25.33% | -46.58% | |
| 1Y Return | +32.31% | -64.64% | |
| 3Y Return (annualized) | +15.40% | -44.63% | |
| 5Y Return (annualized) | +9.70% | -32.36% | |
| Volatility (annualized) | 13.6% | 55.9% | |
| Max Drawdown | -33.4% | -100.0% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Nov 5, 2008 |
SCHD vs TZA Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily Small Cap Bear 3X ETF (TZA) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +32.31% while TZA returned -64.64%. Year to date, SCHD is up 25.33% versus a loss of 46.58% for TZA.
Over three years, SCHD compounded at +15.40% per year against -44.63% for TZA; over five years the annualized figures are +9.70% and -32.36% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs -48.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TZA has been the more volatile fund, with annualized monthly volatility of 55.9% 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 -100.0% for TZA. 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 -0.76. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TZA 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 51.31% for TZA.
Holdings Overlap
SCHD and TZA 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 TZA?
SCHD has an expense ratio of 0.06% while TZA 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 TZA?
Over the past year SCHD returned +32.31% vs -64.64% for TZA, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.45% vs -48.90% for TZA. Past performance does not guarantee future results.
Which is riskier, SCHD or TZA?
TZA has been the more volatile fund at 55.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs TZA -100.0%.
Should I hold both SCHD and TZA?
SCHD and TZA have a monthly-return correlation of -0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TZA?
SCHD and TZA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, SCHD or TZA?
SCHD yields 3.31% while TZA yields 51.31%, so TZA 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.