FBDC vs SCHD
FT Confluence BDC & Specialty Finance Income 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 104 holdings.
Side-by-Side Comparison
| Metric | FBDC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 13.69% | 0.06% | |
| AUM | $36M | $108.7B | |
| Dividend Yield | 13.39% | 3.13% | |
| Holdings | 22 | 104 | |
| YTD Return | -2.80% | +25.69% | |
| 1Y Return | -6.39% | +30.41% | |
| 3Y Return (annualized) | - | +16.03% | |
| 5Y Return (annualized) | - | +9.64% | |
| Volatility (annualized) | 16.5% | 13.6% | |
| Max Drawdown | -20.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 25, 2007 | Oct 20, 2011 |
FBDC vs SCHD Performance
FT Confluence BDC & Specialty Finance Income ETF (FBDC) 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 FBDC returned -6.39% while SCHD returned +30.41%. Year to date, FBDC is down 2.80% versus a gain of 25.69% for SCHD.
Risk: Volatility and Drawdowns
FBDC has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -20.6% for FBDC 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 -0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBDC charges 13.69% per year while SCHD charges 0.06%. On a $10,000 position that is $1369 vs $6 annually, a gap of $1363 per year that compounds over a long holding period. On income, FBDC currently yields 13.39% against 3.13% for SCHD.
Holdings Overlap
FBDC and SCHD share 0 holdings out of 120 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FBDC or SCHD?
FBDC has an expense ratio of 13.69% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $1363 per year of difference.
Which performed better, FBDC or SCHD?
Over the past year FBDC returned -6.39% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), FBDC annualized -4.15% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, FBDC or SCHD?
FBDC has been the more volatile fund at 16.5% annualized versus 13.6% for SCHD. Worst drawdown: FBDC -20.6% vs SCHD -33.4%.
Should I hold both FBDC and SCHD?
FBDC and SCHD have a monthly-return correlation of -0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBDC and SCHD?
FBDC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, FBDC or SCHD?
FBDC yields 13.39% while SCHD yields 3.13%, so FBDC currently pays the higher dividend yield.
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