FDM vs SCHD
First Trust Dow Jones Select MicroCap Index Fund vs Schwab US Dividend Equity ETF
Which is better, FDM or SCHD?
Small Cap Value against Large Cap Value.
SCHD has a lower expense ratio. FDM led over 3Y, 5Y and the full window, SCHD over 1Y. FDM is less concentrated, with 15.6% of the fund in its ten largest positions against 41.5%.
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 | FDM | SCHD |
|---|---|---|
| Expense Ratio | 0.60% | 0.06%Best |
| AUM | $268M | $112.2B |
| Dividend Yield | 1.36% | 3.13% |
| Holdings | 294 | 103 |
| YTD Return | +19.51% | +27.56%Best |
| 1Y Return | +25.21% | +30.29%Best |
| 3Y Return (annualized) | +20.08%Best | +16.37% |
| 5Y Return (annualized) | +11.06%Best | +10.23% |
| Volatility (annualized) | 19.8% | 13.6%Best |
| Max Drawdown | -48.9% | -33.4%Best |
| $10,000 over 5 years | $16,896Best | $16,274 |
| Top 10 Weight | 15.6%Best | 41.5% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Value | Large Cap Value |
| Inception | Sep 27, 2005 | 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).
FDM 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.
FDM vs SCHD Performance
First Trust Dow Jones Select MicroCap Index Fund (FDM) 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 FDM returned +25.21% while SCHD returned +30.29%. Year to date, FDM is up 19.51% versus a gain of 27.56% for SCHD.
Over three years, FDM compounded at +20.08% per year against +16.37% for SCHD; over five years the annualized figures are +11.06% and +10.23% respectively. Across the full 15-year window we track, FDM has the edge at +12.09% annualized vs +11.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDM has been the more volatile fund, with annualized monthly volatility of 19.8% 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 -48.9% for FDM 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDM charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, FDM currently yields 1.36% against 3.13% for SCHD.
Holdings Overlap
5.7% of FDM's money is in holdings SCHD also owns. 0.1% of SCHD's money is in holdings FDM also owns.
FDM and SCHD share little of their money.
5 positions in common, counted across the 146 positions we hold weights for in FDM and 100 in SCHD, against full books of 294 and 103.
What only one of them owns
Our book lists 94 positions for SCHD that do not appear in our book for FDM (99.8% of the fund), and 137 for FDM that do not appear in SCHD (90.7%).
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
You are not choosing between two funds in isolation.
Whichever of FDM 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, FDM or SCHD?
FDM has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option, by $54 a year on a $10,000 investment.
Which performed better, FDM or SCHD?
Over the past year FDM returned +25.21% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FDM annualized +12.09% vs +11.53% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDM or SCHD?
FDM has been the more volatile fund at 19.8% annualized versus 13.6% for SCHD. Worst drawdown: FDM -48.9% vs SCHD -33.4%.
Should I hold both FDM and SCHD?
FDM and SCHD have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FDM and SCHD?
5.7% of FDM's money is in holdings SCHD also owns. 0.1% of SCHD's is in holdings FDM also owns. They hold 5 positions in common, counted across the 146 positions we hold weights for in FDM and 100 in SCHD.
Which pays a higher dividend, FDM or SCHD?
FDM yields 1.36% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FDM?
SCHD has a lower expense ratio. FDM led over 3Y, 5Y and the full window, SCHD over 1Y. FDM is less concentrated, with 15.6% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.