CARZ vs SCHD
First Trust S-Network Future Vehicles & Technology ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. CARZ delivered stronger 1-year returns. CARZ offers more diversification with 105 holdings.
Side-by-Side Comparison
| Metric | CARZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.06% | |
| AUM | $49M | $108.7B | |
| Dividend Yield | 1.33% | 3.13% | |
| Holdings | 105 | 104 | |
| YTD Return | +32.17% | +27.67% | |
| 1Y Return | +63.22% | +31.26% | |
| 3Y Return (annualized) | +27.77% | +16.66% | |
| 5Y Return (annualized) | +15.30% | +10.18% | |
| Volatility (annualized) | 24.2% | 13.6% | |
| Max Drawdown | -51.2% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 9, 2011 | Oct 20, 2011 |
CARZ vs SCHD Performance
First Trust S-Network Future Vehicles & Technology ETF (CARZ) 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 CARZ returned +63.22% while SCHD returned +31.26%. Year to date, CARZ is up 32.17% versus a gain of 27.67% for SCHD.
Over three years, CARZ compounded at +27.77% per year against +16.66% for SCHD; over five years the annualized figures are +15.30% and +10.18% respectively. Across the full 15-year window we track, SCHD has the edge at +11.57% annualized vs +10.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CARZ has been the more volatile fund, with annualized monthly volatility of 24.2% 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 -51.2% for CARZ 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CARZ charges 0.70% per year while SCHD charges 0.06%. On a $10,000 position that is $70 vs $6 annually, a gap of $64 per year that compounds over a long holding period. On income, CARZ currently yields 1.33% against 3.13% for SCHD.
Holdings Overlap
CARZ and SCHD share 4 holdings out of 195 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CARZ or SCHD?
CARZ has an expense ratio of 0.70% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, CARZ or SCHD?
Over the past year CARZ returned +63.22% vs +31.26% for SCHD, so CARZ leads on 1-year performance. Over the longest common window we track (15 years), CARZ annualized +10.33% vs +11.57% for SCHD. Past performance does not guarantee future results.
Which is riskier, CARZ or SCHD?
CARZ has been the more volatile fund at 24.2% annualized versus 13.6% for SCHD. Worst drawdown: CARZ -51.2% vs SCHD -33.4%.
Should I hold both CARZ and SCHD?
CARZ and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CARZ and SCHD?
CARZ and SCHD share 4 common holdings with a 5.3% weight overlap. Combined, they hold 195 unique securities.
Which pays a higher dividend, CARZ or SCHD?
CARZ yields 1.33% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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