FCVT vs SCHD
First Trust SSI Strategic Convertible Securities ETF vs Schwab US Dividend Equity ETF
Which is better, FCVT or SCHD?
Convertibles against Large Cap Value.
SCHD has a lower expense ratio. FCVT led over 3Y, SCHD over 1Y, 5Y and the full window.
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 | FCVT | SCHD |
|---|---|---|
| Expense Ratio | 0.95% | 0.06%Best |
| AUM | $99M | $112.2B |
| Dividend Yield | 1.14% | 3.13% |
| Holdings | 251 | 103 |
| YTD Return | +13.93% | +28.59%Best |
| 1Y Return | +24.45% | +31.77%Best |
| 3Y Return (annualized) | +17.33%Best | +16.70% |
| 5Y Return (annualized) | +4.83% | +10.09%Best |
| Volatility (annualized) | 14.3%Best | 14.8% |
| Max Drawdown | -32.3%Best | -33.4% |
| $10,000 over 5 years | $12,660 | $16,171Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Convertible | Equity |
| Style | Convertibles | Large Cap Value |
| Inception | Nov 3, 2015 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 4, 2015 to Sep 3, 2026 (10.8 years).
FCVT 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 10.8 years both funds cover.
FCVT vs SCHD Performance
First Trust SSI Strategic Convertible Securities ETF (FCVT) 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 FCVT returned +24.45% while SCHD returned +31.77%. Year to date, FCVT is up 13.93% versus a gain of 28.59% for SCHD.
Over three years, FCVT compounded at +17.33% per year against +16.70% for SCHD; over five years the annualized figures are +4.83% and +10.09% respectively. Across the full 11-year window we track, SCHD has the edge at +11.43% annualized vs +9.38%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 14.3% for FCVT. 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 -32.3% for FCVT 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FCVT charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, FCVT currently yields 1.14% against 3.13% for SCHD.
Holdings Overlap
At least 0.7% of SCHD's money is in holdings FCVT also owns.
Stated as a floor: for FCVT, our book for it covers 45.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 49 positions we hold weights for in FCVT and 100 in SCHD, against full books of 251 and 103.
Top Shared Holdings
| Stock | Weight in FCVT | Weight in SCHD | Difference |
|---|---|---|---|
| ARESAres Management Corp Preferred Stock 10/27 6.75 | 0.69% | 0.72% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of FCVT and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FCVT or SCHD?
FCVT has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option, by $89 a year on a $10,000 investment.
Which performed better, FCVT or SCHD?
Over the past year FCVT returned +24.45% vs +31.77% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (11 years), FCVT annualized +9.38% vs +11.43% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FCVT or SCHD?
SCHD has been the more volatile fund at 14.8% annualized versus 14.3% for FCVT. Worst drawdown: FCVT -32.3% vs SCHD -33.4%.
Should I hold both FCVT and SCHD?
FCVT and SCHD have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FCVT or SCHD?
FCVT yields 1.14% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FCVT?
SCHD has a lower expense ratio. FCVT led over 3Y, SCHD over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.