BUFT vs SCHD
FT Vest Buffered Allocation Defensive ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | BUFT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.21% | 0.06% | |
| AUM | $156M | $103.7B | |
| Dividend Yield | 0.00% | 3.31% | |
| Holdings | 8 | 104 | |
| YTD Return | +6.50% | +24.26% | |
| 1Y Return | +10.10% | +31.38% | |
| 3Y Return (annualized) | +9.45% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 5.6% | 13.6% | |
| Max Drawdown | -10.4% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Oct 26, 2021 | Oct 20, 2011 |
BUFT vs SCHD Performance
FT Vest Buffered Allocation Defensive ETF (BUFT) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BUFT returned +10.10% while SCHD returned +31.38%. Year to date, BUFT is up 6.50% versus a gain of 24.26% for SCHD.
Over three years, BUFT compounded at +9.45% per year against +15.08% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +5.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.6% for BUFT. 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 -10.4% for BUFT 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BUFT charges 1.21% per year while SCHD charges 0.06%. On a $10,000 position that is $121 vs $6 annually, a gap of $115 per year that compounds over a long holding period. On income, BUFT currently yields 0.00% against 3.31% for SCHD.
Holdings Overlap
BUFT and SCHD share 0 holdings out of 107 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, BUFT or SCHD?
BUFT has an expense ratio of 1.21% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $115 per year of difference.
Which performed better, BUFT or SCHD?
Over the past year BUFT returned +10.10% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), BUFT annualized +5.83% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, BUFT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.6% for BUFT. Worst drawdown: BUFT -10.4% vs SCHD -33.4%.
Should I hold both BUFT and SCHD?
BUFT and SCHD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFT and SCHD?
BUFT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, BUFT or SCHD?
BUFT yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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