SCHD vs WEBS
Schwab US Dividend Equity ETF vs Direxion Daily Dow Jones Internet Bear 3X ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | WEBS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.07% | |
| AUM | $108.7B | $7M | |
| Dividend Yield | 3.13% | 3.20% | |
| Holdings | 104 | 6 | |
| YTD Return | +27.67% | -33.47% | |
| 1Y Return | +29.56% | -27.91% | |
| 3Y Return (annualized) | +16.53% | -51.19% | |
| 5Y Return (annualized) | +9.95% | -35.39% | |
| Volatility (annualized) | 13.6% | 65.6% | |
| Max Drawdown | -33.4% | -99.7% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Nov 7, 2019 |
SCHD vs WEBS Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Direxion Daily Dow Jones Internet Bear 3X ETF (WEBS) is a ETF from Direxion Shares ETF Trust. Over the past year SCHD returned +29.56% while WEBS returned -27.91%. Year to date, SCHD is up 27.67% versus a loss of 33.47% for WEBS.
Over three years, SCHD compounded at +16.53% per year against -51.19% for WEBS; over five years the annualized figures are +9.95% and -35.39% respectively. Across the full 7-year window we track, SCHD has the edge at +11.55% annualized vs -52.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEBS has been the more volatile fund, with annualized monthly volatility of 65.6% 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 -99.7% for WEBS. 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 -0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while WEBS charges 1.07%. On a $10,000 position that is $6 vs $107 annually, a gap of $101 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 3.20% for WEBS.
Holdings Overlap
SCHD and WEBS share 0 holdings out of 102 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 WEBS?
SCHD has an expense ratio of 0.06% while WEBS charges 1.07%. SCHD is the cheaper option. On a $10,000 investment, that is $101 per year of difference.
Which performed better, SCHD or WEBS?
Over the past year SCHD returned +29.56% vs -27.91% for WEBS, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), SCHD annualized +11.55% vs -52.50% for WEBS. Past performance does not guarantee future results.
Which is riskier, SCHD or WEBS?
WEBS has been the more volatile fund at 65.6% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs WEBS -99.7%.
Should I hold both SCHD and WEBS?
SCHD and WEBS have a monthly-return correlation of -0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and WEBS?
SCHD and WEBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, SCHD or WEBS?
SCHD yields 3.13% while WEBS yields 3.20%, so WEBS currently pays the higher dividend yield.
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