FCTR vs SCHD
First Trust Lunt US Factor Rotation ETF vs Schwab US Dividend Equity ETF
Which is better, FCTR or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. FCTR is less concentrated, with 15.9% of the fund in its ten largest positions against 41.5%.
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 | FCTR | SCHD |
|---|---|---|
| Expense Ratio | 0.65% | 0.06%Best |
| AUM | $57M | $112.2B |
| Dividend Yield | 0.50% | 3.13% |
| Holdings | 331 | 103 |
| YTD Return | +11.17% | +27.56%Best |
| 1Y Return | +18.23% | +30.29%Best |
| 3Y Return (annualized) | +16.31% | +16.37%Best |
| 5Y Return (annualized) | +2.91% | +10.23%Best |
| Volatility (annualized) | 19.9% | 16.4%Best |
| Max Drawdown | -37.1% | -33.4%Best |
| $10,000 over 5 years | $11,542 | $16,274Best |
| Top 10 Weight | 15.9%Best | 41.5% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jul 23, 2018 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2018 to Sep 4, 2026 (8.1 years).
FCTR 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 8.1 years both funds cover.
FCTR vs SCHD Performance
First Trust Lunt US Factor Rotation ETF (FCTR) 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 FCTR returned +18.23% while SCHD returned +30.29%. Year to date, FCTR is up 11.17% versus a gain of 27.56% for SCHD.
Over three years, FCTR compounded at +16.31% per year against +16.37% for SCHD; over five years the annualized figures are +2.91% and +10.23% respectively. Across the full 8-year window we track, SCHD has the edge at +11.77% annualized vs +9.68%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCTR has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 16.4% 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 -37.1% for FCTR 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCTR charges 0.65% per year while SCHD charges 0.06%. On a $10,000 position that is $65 vs $6 annually, a gap of $59 per year that compounds over a long holding period. On income, FCTR currently yields 0.50% against 3.13% for SCHD.
Holdings Overlap
12.7% of FCTR's money is in holdings SCHD also owns. 51.0% of SCHD's money is in holdings FCTR also owns.
The two portfolios partly overlap.
23 positions in common, counted across the 167 positions we hold weights for in FCTR and 100 in SCHD, against full books of 331 and 103.
What only one of them owns
Our book lists 76 positions for SCHD that do not appear in our book for FCTR (48.9% of the fund), and 141 for FCTR that do not appear in SCHD (86.2%).
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 FCTR | Weight in SCHD | Difference |
|---|---|---|---|
| KOCoca Cola Co. | 1.24% | 4.20% | 2.96% |
| AMGNAmgen Inc. | 0.26% | 4.62% | 4.36% |
| UNHUnitedhealth Group Incorporated | 0.49% | 4.11% | 3.62% |
| PGProcter & Gamble Company | 0.23% | 3.96% | 3.73% |
| VZVerizon Communic | 0.33% | 3.84% | 3.51% |
| CVXChevron Corp | 0.36% | 3.74% | 3.38% |
| PEPPepsico Inc. | 0.39% | 3.71% | 3.32% |
| ADPAutomatic Data Processing, Inc. | 0.79% | 2.72% | 1.93% |
| MOAltria Group Inc | 0.44% | 2.86% | 2.42% |
| ACNAccenture Plc | 0.37% | 2.70% | 2.33% |
51.0% of SCHD is already inside FCTR.
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, FCTR or SCHD?
FCTR has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option, by $59 a year on a $10,000 investment.
Which performed better, FCTR or SCHD?
Over the past year FCTR returned +18.23% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), FCTR annualized +9.68% vs +11.77% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FCTR or SCHD?
FCTR has been the more volatile fund at 19.9% annualized versus 16.4% for SCHD. Worst drawdown: FCTR -37.1% vs SCHD -33.4%.
Should I hold both FCTR and SCHD?
FCTR and SCHD have a monthly-return correlation of 0.76, 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 FCTR and SCHD?
51.0% of SCHD's money is in holdings FCTR also owns. 51.0% of SCHD's is in holdings FCTR also owns. They hold 23 positions in common, counted across the 167 positions we hold weights for in FCTR and 100 in SCHD.
Which pays a higher dividend, FCTR or SCHD?
FCTR yields 0.50% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FCTR?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. FCTR is less concentrated, with 15.9% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.