SCHQ vs TYO
Schwab Long-Term US Treasury ETF vs Direxion Daily 7-10 Year Treasury Bear 3X ETF
Quick Verdict
SCHQ has a lower expense ratio. TYO delivered stronger 1-year returns. SCHQ offers more diversification with 98 holdings.
Side-by-Side Comparison
| Metric | SCHQ | TYO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.00% | |
| AUM | $806M | $12M | |
| Dividend Yield | 4.73% | 2.62% | |
| Holdings | 98 | 6 | |
| YTD Return | -3.15% | +11.63% | |
| 1Y Return | -0.88% | +10.94% | |
| 3Y Return (annualized) | +0.10% | +4.88% | |
| 5Y Return (annualized) | -6.79% | +14.70% | |
| Volatility (annualized) | 13.5% | 19.3% | |
| Max Drawdown | -46.7% | -90.4% | |
| Fund Family | Charles Schwab Asset Management | Direxion Shares ETF Trust | |
| Category | Fixed Income | Alternative | |
| Inception | Oct 10, 2019 | Apr 16, 2009 |
SCHQ vs TYO Performance
Schwab Long-Term US Treasury ETF (SCHQ) 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 SCHQ returned -0.88% while TYO returned +10.94%. Year to date, SCHQ is down 3.15% versus a gain of 11.63% for TYO.
Over three years, SCHQ compounded at +0.10% per year against +4.88% for TYO; over five years the annualized figures are -6.79% and +14.70% respectively. Across the full 7-year window we track, SCHQ has the edge at -4.49% annualized vs -7.21%. 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 13.5% 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 -90.4% 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 -0.92. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHQ charges 0.03% per year while TYO charges 1.00%. On a $10,000 position that is $3 vs $100 annually, a gap of $97 per year that compounds over a long holding period. On income, SCHQ currently yields 4.73% against 2.62% for TYO.
Frequently Asked Questions
Which is cheaper, SCHQ or TYO?
SCHQ has an expense ratio of 0.03% while TYO charges 1.00%. SCHQ is the cheaper option. On a $10,000 investment, that is $97 per year of difference.
Which performed better, SCHQ or TYO?
Over the past year SCHQ returned -0.88% vs +10.94% for TYO, so TYO leads on 1-year performance. Over the longest common window we track (7 years), SCHQ annualized -4.49% vs -7.21% for TYO. Past performance does not guarantee future results.
Which is riskier, SCHQ or TYO?
TYO has been the more volatile fund at 19.3% annualized versus 13.5% for SCHQ. Worst drawdown: SCHQ -46.7% vs TYO -90.4%.
Should I hold both SCHQ and TYO?
SCHQ and TYO have a monthly-return correlation of -0.92, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, SCHQ or TYO?
SCHQ yields 4.73% while TYO yields 2.62%, so SCHQ currently pays the higher dividend yield.
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