EDOW vs SCHD
First Trust Dow 30 Equal Weight 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 | EDOW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $311M | $103.7B | |
| Dividend Yield | 1.22% | 3.31% | |
| Holdings | 31 | 104 | |
| YTD Return | +12.96% | +25.33% | |
| 1Y Return | +22.72% | +32.31% | |
| 3Y Return (annualized) | +16.73% | +15.40% | |
| 5Y Return (annualized) | +10.24% | +9.70% | |
| Volatility (annualized) | 15.5% | 13.6% | |
| Max Drawdown | -33.7% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 8, 2017 | Oct 20, 2011 |
EDOW vs SCHD Performance
First Trust Dow 30 Equal Weight ETF (EDOW) 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 EDOW returned +22.72% while SCHD returned +32.31%. Year to date, EDOW is up 12.96% versus a gain of 25.33% for SCHD.
Over three years, EDOW compounded at +16.73% per year against +15.40% for SCHD; over five years the annualized figures are +10.24% and +9.70% respectively. Across the full 9-year window we track, SCHD has the edge at +11.45% annualized vs +11.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EDOW has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -33.7% for EDOW 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
EDOW charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, EDOW currently yields 1.22% against 3.31% for SCHD.
Holdings Overlap
EDOW and SCHD share 7 holdings out of 123 unique holdings combined, representing a 23.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EDOW or SCHD?
EDOW has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, EDOW or SCHD?
Over the past year EDOW returned +22.72% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), EDOW annualized +11.04% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, EDOW or SCHD?
EDOW has been the more volatile fund at 15.5% annualized versus 13.6% for SCHD. Worst drawdown: EDOW -33.7% vs SCHD -33.4%.
Should I hold both EDOW and SCHD?
EDOW and SCHD have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between EDOW and SCHD?
EDOW and SCHD share 7 common holdings with a 23.1% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, EDOW or SCHD?
EDOW yields 1.22% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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