FDL vs SCHD
First Trust Morningstar Dividend Leaders Index Fund vs Schwab US Dividend Equity ETF
Which is better, FDL or SCHD?
Each has led over a different period.
SCHD has a lower expense ratio. FDL led over 3Y and 5Y, SCHD over 1Y and the full window. The two have moved almost in lockstep, correlation 0.92. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 48.3%.
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 | FDL | SCHD |
|---|---|---|
| Expense Ratio | 0.43% | 0.06%Best |
| AUM | $8.1B | $112.2B |
| Dividend Yield | 3.59% | 3.13% |
| Holdings | 202 | 103 |
| YTD Return | +20.36% | +27.56%Best |
| 1Y Return | +24.66% | +30.29%Best |
| 3Y Return (annualized) | +20.00%Best | +16.37% |
| 5Y Return (annualized) | +14.01%Best | +10.23% |
| Volatility (annualized) | 14.1% | 13.6%Best |
| Max Drawdown | -41.4% | -33.4%Best |
| $10,000 over 5 years | $19,263Best | $16,274 |
| Top 10 Weight | 48.3% | 41.5%Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Mar 9, 2006 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 4, 2026 (14.9 years).
FDL 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 14.9 years both funds cover.
FDL vs SCHD Performance
First Trust Morningstar Dividend Leaders Index Fund (FDL) 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 FDL returned +24.66% while SCHD returned +30.29%. Year to date, FDL is up 20.36% versus a gain of 27.56% for SCHD.
Over three years, FDL compounded at +20.00% per year against +16.37% for SCHD; over five years the annualized figures are +14.01% and +10.23% respectively. Across the full 15-year window we track, SCHD has the edge at +11.53% annualized vs +9.75%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDL has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -41.4% for FDL 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FDL charges 0.43% per year while SCHD charges 0.06%. On a $10,000 position that is $43 vs $6 annually, a gap of $37 per year that compounds over a long holding period. On income, FDL currently yields 3.59% against 3.13% for SCHD.
Holdings Overlap
49.1% of FDL's money is in holdings SCHD also owns. 36.4% of SCHD's money is in holdings FDL also owns.
The two portfolios partly overlap.
27 positions in common, counted across the 100 positions we hold weights for in FDL and 100 in SCHD, against full books of 202 and 103.
What only one of them owns
Our book lists 71 positions for SCHD that do not appear in our book for FDL (63.3% of the fund), and 73 for FDL that do not appear in SCHD (50.6%).
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 FDL | Weight in SCHD | Difference |
|---|---|---|---|
| CVXChevron Corp.United States -Energy | 7.90% | 3.74% | 4.16% |
| VZVerizon Communications Inc Com Usd1 | 7.44% | 3.84% | 3.60% |
| PEPPepsico Inc. | 4.69% | 3.71% | 0.98% |
| MOAltria Group Inc. | 4.17% | 2.86% | 1.31% |
| BMYBristol-Myers Squibb Co. | 3.58% | 3.31% | 0.27% |
| CMCSACOMCAST CORP CLASS A | 2.99% | 2.26% | 0.73% |
| ACNAccenture Plc Class A | 2.39% | 2.70% | 0.31% |
| BXBlackstone, Inc. | 2.52% | 2.55% | 0.03% |
| UPSUnited Parcel Service, Inc | 2.99% | 1.95% | 1.04% |
| TGTTarget Corp. | 1.50% | 1.70% | 0.20% |
49.1% of FDL is already inside SCHD.
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, FDL or SCHD?
FDL has an expense ratio of 0.43% while SCHD charges 0.06%. SCHD is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, FDL or SCHD?
Over the past year FDL returned +24.66% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FDL annualized +9.75% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDL or SCHD?
FDL has been the more volatile fund at 14.1% annualized versus 13.6% for SCHD. Worst drawdown: FDL -41.4% vs SCHD -33.4%.
Should I hold both FDL and SCHD?
FDL and SCHD have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FDL and SCHD?
49.1% of FDL's money is in holdings SCHD also owns. 36.4% of SCHD's is in holdings FDL also owns. They hold 27 positions in common, counted across the 100 positions we hold weights for in FDL and 100 in SCHD.
Which pays a higher dividend, FDL or SCHD?
FDL yields 3.59% while SCHD yields 3.13%, so FDL currently pays the higher dividend yield.
Is SCHD better than FDL?
SCHD has a lower expense ratio. FDL led over 3Y and 5Y, SCHD over 1Y and the full window. The two have moved almost in lockstep, correlation 0.92. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 48.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.