FCVT vs SCHD
First Trust SSI Strategic Convertible Securities ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FCVT delivered stronger 1-year returns. FCVT offers more diversification with 137 holdings.
Side-by-Side Comparison
| Metric | FCVT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.06% | |
| AUM | $104M | $108.7B | |
| Dividend Yield | 1.14% | 3.13% | |
| Holdings | 137 | 104 | |
| YTD Return | +19.38% | +26.54% | |
| 1Y Return | +31.31% | +30.90% | |
| 3Y Return (annualized) | +19.53% | +16.29% | |
| 5Y Return (annualized) | +6.59% | +9.65% | |
| Volatility (annualized) | 14.4% | 13.6% | |
| Max Drawdown | -32.3% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Convertible | Equity | |
| Inception | Nov 3, 2015 | Oct 20, 2011 |
FCVT vs SCHD Performance
First Trust SSI Strategic Convertible Securities ETF (FCVT) 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 FCVT returned +31.31% while SCHD returned +30.90%. Year to date, FCVT is up 19.38% versus a gain of 26.54% for SCHD.
Over three years, FCVT compounded at +19.53% per year against +16.29% for SCHD; over five years the annualized figures are +6.59% and +9.65% respectively. Across the full 11-year window we track, SCHD has the edge at +11.51% annualized vs +9.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FCVT has been the more volatile fund, with annualized monthly volatility of 14.4% 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 -32.3% for FCVT 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
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
FCVT and SCHD share 1 holdings out of 150 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FCVT | Weight in SCHD | Difference |
|---|---|---|---|
| ARES | 0.30% | 0.72% | 0.42% |
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. On a $10,000 investment, that is $89 per year of difference.
Which performed better, FCVT or SCHD?
Over the past year FCVT returned +31.31% vs +30.90% for SCHD, so FCVT leads on 1-year performance. Over the longest common window we track (11 years), FCVT annualized +9.90% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FCVT or SCHD?
FCVT has been the more volatile fund at 14.4% annualized versus 13.6% for SCHD. 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCVT and SCHD?
FCVT and SCHD share 1 common holdings with a 0.3% weight overlap. Combined, they hold 150 unique securities.
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.
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