FAB vs SCHD
First Trust Multi Cap Value AlphaDEX Fund vs Schwab US Dividend Equity ETF
Which is better, FAB or SCHD?
Mid Cap Value against Large Cap Value.
SCHD has a lower expense ratio. FAB led over 5Y, SCHD over 1Y, 3Y and the full window. FAB is less concentrated, with 5.5% of the fund in its ten largest positions against 41.8%.
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 | FAB | SCHD |
|---|---|---|
| Expense Ratio | 0.66% | 0.06%Best |
| AUM | $191M | $112.1B |
| Dividend Yield | 1.51% | 3.00% |
| Holdings | 1,350 | 103 |
| YTD Return | +16.15% | +24.04%Best |
| 1Y Return | +20.79% | +27.95%Best |
| 3Y Return (annualized) | +15.24% | +15.51%Best |
| 5Y Return (annualized) | +9.90%Best | +9.80% |
| Volatility (annualized) | 18.5% | 13.6%Best |
| Max Drawdown | -47.8% | -33.4%Best |
| $10,000 over 5 years | $16,032Best | $15,959 |
| Top 10 Weight | 5.5%Best | 41.8% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Value |
| Inception | May 8, 2007 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 16, 2026 (14.9 years).
FAB 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 14.9 years both funds cover.
FAB vs SCHD Performance
First Trust Multi Cap Value AlphaDEX Fund (FAB) 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 FAB returned +20.79% while SCHD returned +27.95%. Year to date, FAB is up 16.15% versus a gain of 24.04% for SCHD.
Over three years, FAB compounded at +15.24% per year against +15.51% for SCHD; over five years the annualized figures are +9.90% and +9.80% respectively. Across the full 15-year window we track, SCHD has the edge at +11.29% annualized vs +10.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAB has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -47.8% for FAB and -33.4% 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAB charges 0.66% per year while SCHD charges 0.06%. On a $10,000 position that is $66 vs $6 annually, a gap of $60 per year that compounds over a long holding period. On income, FAB currently yields 1.51% against 3.00% for SCHD.
Holdings Overlap
10.3% of FAB's money is in holdings SCHD also owns. 56.0% of SCHD's money is in holdings FAB also owns.
The two portfolios partly overlap.
53 positions in common, counted across the 657 positions we hold weights for in FAB and 100 in SCHD, against full books of 1,350 and 103.
What only one of them owns
Our book lists 47 positions for SCHD that do not appear in our book for FAB (43.9% of the fund), and 586 for FAB that do not appear in SCHD (84.4%).
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.
Top Shared Holdings
| Stock | Weight in FAB | Weight in SCHD | Difference |
|---|---|---|---|
| ABTAbbott Laboratories | 0.21% | 4.69% | 4.48% |
| COPConocophillips Common Stock USD 0.01 | 0.54% | 3.94% | 3.40% |
| VZVerizon Communic | 0.50% | 3.97% | 3.47% |
| CVXChevron Corp | 0.42% | 4.02% | 3.60% |
| PGProcter & Gamble Company | 0.17% | 3.83% | 3.66% |
| HDHome Depot Inc/The | 0.08% | 3.88% | 3.80% |
| PEPPepsico Inc. | 0.09% | 3.64% | 3.55% |
| BMYBristol-Myers Squibb Co. | 0.29% | 3.33% | 3.04% |
| MOAltria Group Inc | 0.16% | 2.79% | 2.63% |
| CMCSAComcast Corp-class A Cmcsa | 0.46% | 2.31% | 1.85% |
56.0% of SCHD is already inside FAB.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FAB or SCHD?
FAB has an expense ratio of 0.66% while SCHD charges 0.06%. SCHD is the cheaper option, by $60 a year on a $10,000 investment.
Which performed better, FAB or SCHD?
Over the past year FAB returned +20.79% vs +27.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FAB annualized +10.11% vs +11.29% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAB or SCHD?
FAB has been the more volatile fund at 18.5% annualized versus 13.6% for SCHD. Worst drawdown: FAB -47.8% vs SCHD -33.4%.
Should I hold both FAB and SCHD?
FAB and SCHD have a monthly-return correlation of 0.88, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FAB and SCHD?
56.0% of SCHD's money is in holdings FAB also owns. 56.0% of SCHD's is in holdings FAB also owns. They hold 53 positions in common, counted across the 657 positions we hold weights for in FAB and 100 in SCHD.
Which pays a higher dividend, FAB or SCHD?
FAB yields 1.51% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FAB?
SCHD has a lower expense ratio. FAB led over 5Y, SCHD over 1Y, 3Y and the full window. FAB is less concentrated, with 5.5% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.