FDD vs SCHD
First Trust STOXX European Select Dividend Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FDD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | FDD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.06% | |
| AUM | $918M | $108.7B | |
| Dividend Yield | 5.03% | 3.13% | |
| Holdings | 34 | 104 | |
| YTD Return | +19.76% | +26.54% | |
| 1Y Return | +32.98% | +30.90% | |
| 3Y Return (annualized) | +29.83% | +16.29% | |
| 5Y Return (annualized) | +13.12% | +9.65% | |
| Volatility (annualized) | 18.1% | 13.6% | |
| Max Drawdown | -46.5% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 27, 2007 | Oct 20, 2011 |
FDD vs SCHD Performance
First Trust STOXX European Select Dividend Index Fund (FDD) 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 FDD returned +32.98% while SCHD returned +30.90%. Year to date, FDD is up 19.76% versus a gain of 26.54% for SCHD.
Over three years, FDD compounded at +29.83% per year against +16.29% for SCHD; over five years the annualized figures are +13.12% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +4.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDD has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -46.5% for FDD 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDD charges 0.56% per year while SCHD charges 0.06%. On a $10,000 position that is $56 vs $6 annually, a gap of $50 per year that compounds over a long holding period. On income, FDD currently yields 5.03% against 3.13% for SCHD.
Holdings Overlap
FDD and SCHD share 0 holdings out of 130 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, FDD or SCHD?
FDD has an expense ratio of 0.56% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, FDD or SCHD?
Over the past year FDD returned +32.98% vs +30.90% for SCHD, so FDD leads on 1-year performance. Over the longest common window we track (15 years), FDD annualized +4.31% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FDD or SCHD?
FDD has been the more volatile fund at 18.1% annualized versus 13.6% for SCHD. Worst drawdown: FDD -46.5% vs SCHD -33.4%.
Should I hold both FDD and SCHD?
FDD and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDD and SCHD?
FDD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, FDD or SCHD?
FDD yields 5.03% while SCHD yields 3.13%, so FDD currently pays the higher dividend yield.
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