DDIV vs SCHD
First Trust Dorsey Wright Momentum & Dividend 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 | DDIV | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $76M | $103.7B | |
| Dividend Yield | 1.61% | 3.31% | |
| Holdings | 51 | 104 | |
| YTD Return | +12.46% | +25.33% | |
| 1Y Return | +25.17% | +32.31% | |
| 3Y Return (annualized) | +20.61% | +15.40% | |
| 5Y Return (annualized) | +11.34% | +9.70% | |
| Volatility (annualized) | 20.1% | 13.6% | |
| Max Drawdown | -47.5% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 2014 | Oct 20, 2011 |
DDIV vs SCHD Performance
First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) 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 DDIV returned +25.17% while SCHD returned +32.31%. Year to date, DDIV is up 12.46% versus a gain of 25.33% for SCHD.
Over three years, DDIV compounded at +20.61% per year against +15.40% for SCHD; over five years the annualized figures are +11.34% and +9.70% respectively. Across the full 8-year window we track, SCHD has the edge at +11.45% annualized vs +9.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DDIV has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -47.5% for DDIV 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DDIV charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, DDIV currently yields 1.61% against 3.31% for SCHD.
Holdings Overlap
DDIV and SCHD share 8 holdings out of 142 unique holdings combined, representing a 9.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DDIV or SCHD?
DDIV has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, DDIV or SCHD?
Over the past year DDIV returned +25.17% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), DDIV annualized +9.95% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, DDIV or SCHD?
DDIV has been the more volatile fund at 20.1% annualized versus 13.6% for SCHD. Worst drawdown: DDIV -47.5% vs SCHD -33.4%.
Should I hold both DDIV and SCHD?
DDIV and SCHD have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DDIV and SCHD?
DDIV and SCHD share 8 common holdings with a 9.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, DDIV or SCHD?
DDIV yields 1.61% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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