BTO vs SCHD
John Hancock Financial Opportunities Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BTO offers more diversification with 184 holdings.
Side-by-Side Comparison
| Metric | BTO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.96% | 0.06% | |
| AUM | $709M | $108.7B | |
| Dividend Yield | 6.18% | 3.13% | |
| Holdings | 184 | 104 | |
| YTD Return | +16.72% | +27.67% | |
| 1Y Return | +20.68% | +31.26% | |
| 3Y Return (annualized) | +22.82% | +16.66% | |
| 5Y Return (annualized) | +7.05% | +10.18% | |
| Volatility (annualized) | 31.1% | 13.6% | |
| Max Drawdown | -95.5% | -33.4% | |
| Fund Family | John Hancock Investment Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 18, 1994 | Oct 20, 2011 |
BTO vs SCHD Performance
John Hancock Financial Opportunities Fund (BTO) is a ETF from John Hancock Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BTO returned +20.68% while SCHD returned +31.26%. Year to date, BTO is up 16.72% versus a gain of 27.67% for SCHD.
Over three years, BTO compounded at +22.82% per year against +16.66% for SCHD; over five years the annualized figures are +7.05% and +10.18% respectively. Across the full 15-year window we track, SCHD has the edge at +11.57% annualized vs -4.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTO has been the more volatile fund, with annualized monthly volatility of 31.1% 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 -95.5% for BTO and -33.4% for SCHD. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BTO charges 2.96% per year while SCHD charges 0.06%. On a $10,000 position that is $296 vs $6 annually, a gap of $290 per year that compounds over a long holding period. On income, BTO currently yields 6.18% against 3.13% for SCHD.
Holdings Overlap
BTO and SCHD share 12 holdings out of 222 unique holdings combined, representing a 3.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BTO or SCHD?
BTO has an expense ratio of 2.96% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $290 per year of difference.
Which performed better, BTO or SCHD?
Over the past year BTO returned +20.68% vs +31.26% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BTO annualized -4.16% vs +11.57% for SCHD. Past performance does not guarantee future results.
Which is riskier, BTO or SCHD?
BTO has been the more volatile fund at 31.1% annualized versus 13.6% for SCHD. Worst drawdown: BTO -95.5% vs SCHD -33.4%.
Should I hold both BTO and SCHD?
BTO and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTO and SCHD?
BTO and SCHD share 12 common holdings with a 3.7% weight overlap. Combined, they hold 222 unique securities.
Which pays a higher dividend, BTO or SCHD?
BTO yields 6.18% while SCHD yields 3.13%, so BTO currently pays the higher dividend yield.
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