FCEF vs SCHD
First Trust Income Opportunities 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 | FCEF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.06% | |
| AUM | $83M | $108.7B | |
| Dividend Yield | 6.88% | 3.13% | |
| Holdings | 62 | 104 | |
| YTD Return | +10.75% | +26.54% | |
| 1Y Return | +15.44% | +30.90% | |
| 3Y Return (annualized) | +16.07% | +16.29% | |
| 5Y Return (annualized) | +6.16% | +9.65% | |
| Volatility (annualized) | 14.6% | 13.6% | |
| Max Drawdown | -45.1% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 27, 2016 | Oct 20, 2011 |
FCEF vs SCHD Performance
First Trust Income Opportunities ETF (FCEF) 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 FCEF returned +15.44% while SCHD returned +30.90%. Year to date, FCEF is up 10.75% versus a gain of 26.54% for SCHD.
Over three years, FCEF compounded at +16.07% per year against +16.29% for SCHD; over five years the annualized figures are +6.16% and +9.65% respectively. Across the full 10-year window we track, SCHD has the edge at +11.51% annualized vs +5.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCEF has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -45.1% for FCEF 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCEF charges 3.69% per year while SCHD charges 0.06%. On a $10,000 position that is $369 vs $6 annually, a gap of $363 per year that compounds over a long holding period. On income, FCEF currently yields 6.88% against 3.13% for SCHD.
Holdings Overlap
FCEF and SCHD share 0 holdings out of 160 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, FCEF or SCHD?
FCEF has an expense ratio of 3.69% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $363 per year of difference.
Which performed better, FCEF or SCHD?
Over the past year FCEF returned +15.44% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), FCEF annualized +5.92% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FCEF or SCHD?
FCEF has been the more volatile fund at 14.6% annualized versus 13.6% for SCHD. Worst drawdown: FCEF -45.1% vs SCHD -33.4%.
Should I hold both FCEF and SCHD?
FCEF and SCHD have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCEF and SCHD?
FCEF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 160 unique securities.
Which pays a higher dividend, FCEF or SCHD?
FCEF yields 6.88% while SCHD yields 3.13%, so FCEF currently pays the higher dividend yield.
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