SCHQ vs SOXL
Schwab Long-Term US Treasury ETF vs Direxion Daily Semiconductor Bull 3X ETF
Quick Verdict
SCHQ has a lower expense ratio. SOXL delivered stronger 1-year returns. SCHQ offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHQ | SOXL | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.75% | |
| AUM | $803M | $24.3B | |
| Dividend Yield | 4.91% | 0.01% | |
| Holdings | 100 | 43 | |
| YTD Return | -2.72% | +155.29% | |
| 1Y Return | +0.09% | +375.74% | |
| 3Y Return (annualized) | +0.91% | +78.72% | |
| 5Y Return (annualized) | -7.20% | +23.06% | |
| Volatility (annualized) | 13.5% | 87.7% | |
| Max Drawdown | -46.7% | -90.5% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Fixed Income | Alternative | |
| Inception | Oct 10, 2019 | Mar 11, 2010 |
SCHQ vs SOXL Performance
Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management and Direxion Daily Semiconductor Bull 3X ETF (SOXL) is a ETF from Direxion Shares ETF Trust. Over the past year SCHQ returned +0.09% while SOXL returned +375.74%. Year to date, SCHQ is down 2.72% versus a gain of 155.29% for SOXL.
Over three years, SCHQ compounded at +0.91% per year against +78.72% for SOXL; over five years the annualized figures are -7.20% and +23.06% respectively. Across the full 7-year window we track, SOXL has the edge at +37.43% annualized vs -4.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SOXL has been the more volatile fund, with annualized monthly volatility of 87.7% compared with 13.5% for SCHQ. 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 -46.7% for SCHQ and -90.5% for SOXL. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHQ charges 0.03% per year while SOXL charges 0.75%. On a $10,000 position that is $3 vs $75 annually, a gap of $72 per year that compounds over a long holding period. On income, SCHQ currently yields 4.91% against 0.01% for SOXL.
Holdings Overlap
SCHQ and SOXL share 0 holdings out of 127 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, SCHQ or SOXL?
SCHQ has an expense ratio of 0.03% while SOXL charges 0.75%. SCHQ is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, SCHQ or SOXL?
Over the past year SCHQ returned +0.09% vs +375.74% for SOXL, so SOXL leads on 1-year performance. Over the longest common window we track (7 years), SCHQ annualized -4.41% vs +37.43% for SOXL. Past performance does not guarantee future results.
Which is riskier, SCHQ or SOXL?
SOXL has been the more volatile fund at 87.7% annualized versus 13.5% for SCHQ. Worst drawdown: SCHQ -46.7% vs SOXL -90.5%.
Should I hold both SCHQ and SOXL?
SCHQ and SOXL have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHQ and SOXL?
SCHQ and SOXL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 127 unique securities.
Which pays a higher dividend, SCHQ or SOXL?
SCHQ yields 4.91% while SOXL yields 0.01%, so SCHQ currently pays the higher dividend yield.
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