FDL vs SCHD
First Trust Morningstar Dividend Leaders Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | FDL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.06% | |
| AUM | $8.0B | $108.7B | |
| Dividend Yield | 3.59% | 3.13% | |
| Holdings | 101 | 104 | |
| YTD Return | +20.26% | +26.54% | |
| 1Y Return | +26.63% | +30.90% | |
| 3Y Return (annualized) | +20.32% | +16.29% | |
| 5Y Return (annualized) | +13.63% | +9.65% | |
| Volatility (annualized) | 16.1% | 13.6% | |
| Max Drawdown | -68.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 9, 2006 | Oct 20, 2011 |
FDL vs SCHD Performance
First Trust Morningstar Dividend Leaders Index Fund (FDL) 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 FDL returned +26.63% while SCHD returned +30.90%. Year to date, FDL is up 20.26% versus a gain of 26.54% for SCHD.
Over three years, FDL compounded at +20.32% per year against +16.29% for SCHD; over five years the annualized figures are +13.63% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +5.93%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDL has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -68.6% for FDL 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 0.92. 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
FDL and SCHD share 27 holdings out of 173 unique holdings combined, representing a 35.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FDL or SCHD?
Over the past year FDL returned +26.63% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FDL annualized +5.93% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FDL or SCHD?
FDL has been the more volatile fund at 16.1% annualized versus 13.6% for SCHD. Worst drawdown: FDL -68.6% 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. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FDL and SCHD?
FDL and SCHD share 27 common holdings with a 35.7% weight overlap. Combined, they hold 173 unique securities.
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.
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