FBT vs SCHD
First Trust NYSE Arca Biotechnology Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FBT delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | FBT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.06% | |
| AUM | $2.8B | $103.7B | |
| Dividend Yield | 0.00% | 3.31% | |
| Holdings | 31 | 104 | |
| YTD Return | +24.52% | +25.62% | |
| 1Y Return | +58.27% | +32.62% | |
| 3Y Return (annualized) | +19.33% | +15.58% | |
| 5Y Return (annualized) | +9.07% | +9.63% | |
| Volatility (annualized) | 22.9% | 13.6% | |
| Max Drawdown | -40.5% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 19, 2006 | Oct 20, 2011 |
FBT vs SCHD Performance
First Trust NYSE Arca Biotechnology Index Fund (FBT) 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 FBT returned +58.27% while SCHD returned +32.62%. Year to date, FBT is up 24.52% versus a gain of 25.62% for SCHD.
Over three years, FBT compounded at +19.33% per year against +15.58% for SCHD; over five years the annualized figures are +9.07% and +9.63% respectively. Across the full 15-year window we track, FBT has the edge at +13.69% annualized vs +11.47%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FBT has been the more volatile fund, with annualized monthly volatility of 22.9% 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 -40.5% for FBT 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBT charges 0.54% per year while SCHD charges 0.06%. On a $10,000 position that is $54 vs $6 annually, a gap of $48 per year that compounds over a long holding period. On income, FBT currently yields 0.00% against 3.31% for SCHD.
Holdings Overlap
FBT and SCHD share 1 holdings out of 129 unique holdings combined, representing a 2.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FBT | Weight in SCHD | Difference |
|---|---|---|---|
| AMGN | 2.76% | 4.25% | 1.49% |
Frequently Asked Questions
Which is cheaper, FBT or SCHD?
FBT has an expense ratio of 0.54% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $48 per year of difference.
Which performed better, FBT or SCHD?
Over the past year FBT returned +58.27% vs +32.62% for SCHD, so FBT leads on 1-year performance. Over the longest common window we track (15 years), FBT annualized +13.69% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, FBT or SCHD?
FBT has been the more volatile fund at 22.9% annualized versus 13.6% for SCHD. Worst drawdown: FBT -40.5% vs SCHD -33.4%.
Should I hold both FBT and SCHD?
FBT and SCHD have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBT and SCHD?
FBT and SCHD share 1 common holdings with a 2.8% weight overlap. Combined, they hold 129 unique securities.
Which pays a higher dividend, FBT or SCHD?
FBT yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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