AFLG vs SCHD
First Trust Active Factor Large Cap ETF vs Schwab US Dividend Equity ETF
Which is better, AFLG or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. AFLG led over 3Y, 5Y and the full window, SCHD over 1Y. AFLG is less concentrated, with 33.6% of the fund in its ten largest positions against 41.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AFLG | SCHD |
|---|---|---|
| Expense Ratio | 0.55% | 0.06%Best |
| AUM | $784M | $112.1B |
| Dividend Yield | 0.71% | 3.00% |
| Holdings | 432 | 103 |
| YTD Return | +13.96% | +25.07%Best |
| 1Y Return | +17.26% | +27.61%Best |
| 3Y Return (annualized) | +21.75%Best | +15.74% |
| 5Y Return (annualized) | +12.35%Best | +9.89% |
| Volatility (annualized) | 16.7%Tie | 16.7%Tie |
| Max Drawdown | -35.8% | -33.4%Best |
| $10,000 over 5 years | $17,901Best | $16,025 |
| Top 10 Weight | 33.6%Best | 41.8% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Dec 4, 2019 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Dec 4, 2019 to Sep 11, 2026 (6.8 years).
AFLG vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.8 years both funds cover.
AFLG vs SCHD Performance
First Trust Active Factor Large Cap ETF (AFLG) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year AFLG returned +17.26% while SCHD returned +27.61%. Year to date, AFLG is up 13.96% versus a gain of 25.07% for SCHD.
Over three years, AFLG compounded at +21.75% per year against +15.74% for SCHD; over five years the annualized figures are +12.35% and +9.89% respectively. Across the full 7-year window we track, AFLG has the edge at +13.58% annualized vs +12.25%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFLG and SCHD have been equally volatile, both at 16.7% annualized.
The deepest peak-to-trough decline in our data was -35.8% for AFLG and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFLG charges 0.55% per year while SCHD charges 0.06%. On a $10,000 position that is $55 vs $6 annually, a gap of $49 per year that compounds over a long holding period. On income, AFLG currently yields 0.71% against 3.00% for SCHD.
Holdings Overlap
9.9% of AFLG's money is in holdings SCHD also owns. 48.7% of SCHD's money is in holdings AFLG also owns.
The two portfolios partly overlap.
25 positions in common, counted across the 215 positions we hold weights for in AFLG and 100 in SCHD, against full books of 432 and 103.
What only one of them owns
Our book lists 74 positions for SCHD that do not appear in our book for AFLG (51.2% of the fund), and 185 for AFLG that do not appear in SCHD (88.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in AFLG | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Co. Inc. | 0.36% | 4.77% | 4.41% |
| CVXChevron Corp. | 0.44% | 4.02% | 3.58% |
| VZVerizon Communications, Inc. | 0.48% | 3.97% | 3.49% |
| UNHUnitedhealth Group Inc. | 0.47% | 3.82% | 3.35% |
| BMYBristol-Myers Squibb Co. | 0.50% | 3.33% | 2.83% |
| MOAltria Group Inc. | 0.97% | 2.79% | 1.82% |
| TXNTexas Instruments, Inc | 0.35% | 3.13% | 2.78% |
| ACNAccenture Plc | 0.34% | 2.84% | 2.50% |
| QCOMQualcomm Inc. | 0.39% | 2.52% | 2.13% |
| ADPAutomatic Data Processing, Inc. | 0.10% | 2.79% | 2.69% |
48.7% of SCHD is already inside AFLG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AFLG or SCHD?
AFLG has an expense ratio of 0.55% while SCHD charges 0.06%. SCHD is the cheaper option, by $49 a year on a $10,000 investment.
Which performed better, AFLG or SCHD?
Over the past year AFLG returned +17.26% vs +27.61% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), AFLG annualized +13.58% vs +12.25% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFLG or SCHD?
AFLG and SCHD have been equally volatile, both at 16.7% annualized. Worst drawdown: AFLG -35.8% vs SCHD -33.4%.
Should I hold both AFLG and SCHD?
AFLG and SCHD have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between AFLG and SCHD?
48.7% of SCHD's money is in holdings AFLG also owns. 48.7% of SCHD's is in holdings AFLG also owns. They hold 25 positions in common, counted across the 215 positions we hold weights for in AFLG and 100 in SCHD.
Which pays a higher dividend, AFLG or SCHD?
AFLG yields 0.71% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than AFLG?
SCHD has a lower expense ratio. AFLG led over 3Y, 5Y and the full window, SCHD over 1Y. AFLG is less concentrated, with 33.6% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.