BUFT vs SCHD
FT Vest Buffered Allocation Defensive ETF vs Schwab US Dividend Equity ETF
Which is better, BUFT or SCHD?
Option Writing against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | BUFT | SCHD |
|---|---|---|
| Expense Ratio | 1.21% | 0.06%Best |
| AUM | $160M | $112.1B |
| Dividend Yield | 0.00% | 3.00% |
| Holdings | 16 | 103 |
| YTD Return | +7.19% | +23.46%Best |
| 1Y Return | +9.48% | +27.20%Best |
| 3Y Return (annualized) | +9.51% | +15.41%Best |
| 5Y Return (annualized) | +5.83% | +10.16%Best |
| Volatility (annualized) | 5.5%Best | 14.9% |
| Max Drawdown | -10.4%Best | -16.9% |
| $10,000 over 5 years | $13,275 | $16,223Best |
| Top 10 Weight | - | 41.8% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Value |
| Inception | Oct 26, 2021 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 27, 2021 to Sep 18, 2026 (4.9 years).
BUFT 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 4.9 years both funds cover.
BUFT vs SCHD Performance
FT Vest Buffered Allocation Defensive ETF (BUFT) 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 BUFT returned +9.48% while SCHD returned +27.20%. Year to date, BUFT is up 7.19% versus a gain of 23.46% for SCHD.
Over three years, BUFT compounded at +9.51% per year against +15.41% for SCHD; over five years the annualized figures are +5.83% and +10.16% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 5.5% 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 -16.9% 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 0.67. They move together some of the time, and apart the rest.
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 3.00% for SCHD.
Holdings Overlap
We hold position weights for 7 holdings in BUFT and 100 in SCHD, totalling 100.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 7 positions we hold weights for in BUFT and 100 in SCHD, against full books of 16 and 103.
What only one of them owns
Our book lists 99 positions for SCHD that do not appear in our book for BUFT (99.9% of the fund), and 7 for BUFT that do not appear in SCHD (100.0%).
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.
You are not choosing between two funds in isolation.
Whichever of BUFT and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $115 a year on a $10,000 investment.
Which performed better, BUFT or SCHD?
Over the past year BUFT returned +9.48% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BUFT or SCHD?
SCHD has been the more volatile fund at 14.9% annualized versus 5.5% for BUFT. Worst drawdown: BUFT -10.4% vs SCHD -16.9%.
Should I hold both BUFT and SCHD?
BUFT and SCHD have a monthly-return correlation of 0.67, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BUFT or SCHD?
BUFT yields 0.00% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than BUFT?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.