FCT vs SCHD
First Trust Senior Floating Rate Income Fund II vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FCT offers more diversification with 221 holdings.
Side-by-Side Comparison
| Metric | FCT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.67% | 0.06% | |
| AUM | $252M | $108.7B | |
| Dividend Yield | 11.84% | 3.13% | |
| Holdings | 221 | 104 | |
| YTD Return | +2.69% | +26.54% | |
| 1Y Return | +7.32% | +30.90% | |
| 3Y Return (annualized) | +10.56% | +16.29% | |
| 5Y Return (annualized) | +5.74% | +9.65% | |
| Volatility (annualized) | 14.8% | 13.6% | |
| Max Drawdown | -72.7% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2004 | Oct 20, 2011 |
FCT vs SCHD Performance
First Trust Senior Floating Rate Income Fund II (FCT) 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 FCT returned +7.32% while SCHD returned +30.90%. Year to date, FCT is up 2.69% versus a gain of 26.54% for SCHD.
Over three years, FCT compounded at +10.56% per year against +16.29% for SCHD; over five years the annualized figures are +5.74% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs -0.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCT has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -72.7% for FCT 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCT charges 1.67% per year while SCHD charges 0.06%. On a $10,000 position that is $167 vs $6 annually, a gap of $161 per year that compounds over a long holding period. On income, FCT currently yields 11.84% against 3.13% for SCHD.
Holdings Overlap
FCT and SCHD share 0 holdings out of 206 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, FCT or SCHD?
FCT has an expense ratio of 1.67% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $161 per year of difference.
Which performed better, FCT or SCHD?
Over the past year FCT returned +7.32% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FCT annualized -0.76% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FCT or SCHD?
FCT has been the more volatile fund at 14.8% annualized versus 13.6% for SCHD. Worst drawdown: FCT -72.7% vs SCHD -33.4%.
Should I hold both FCT and SCHD?
FCT and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCT and SCHD?
FCT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 206 unique securities.
Which pays a higher dividend, FCT or SCHD?
FCT yields 11.84% while SCHD yields 3.13%, so FCT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.