FDT vs SCHD
First Trust Developed Markets Ex-US AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FDT delivered stronger 1-year returns. FDT offers more diversification with 312 holdings.
Side-by-Side Comparison
| Metric | FDT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.06% | |
| AUM | $1.3B | $108.7B | |
| Dividend Yield | 2.88% | 3.13% | |
| Holdings | 312 | 104 | |
| YTD Return | +20.22% | +26.54% | |
| 1Y Return | +34.44% | +30.90% | |
| 3Y Return (annualized) | +27.26% | +16.29% | |
| 5Y Return (annualized) | +12.44% | +9.65% | |
| Volatility (annualized) | 17.1% | 13.6% | |
| Max Drawdown | -48.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 18, 2011 | Oct 20, 2011 |
FDT vs SCHD Performance
First Trust Developed Markets Ex-US AlphaDEX Fund (FDT) 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 FDT returned +34.44% while SCHD returned +30.90%. Year to date, FDT is up 20.22% versus a gain of 26.54% for SCHD.
Over three years, FDT compounded at +27.26% per year against +16.29% for SCHD; over five years the annualized figures are +12.44% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +5.64%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FDT has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -48.6% for FDT 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDT charges 0.80% per year while SCHD charges 0.06%. On a $10,000 position that is $80 vs $6 annually, a gap of $74 per year that compounds over a long holding period. On income, FDT currently yields 2.88% against 3.13% for SCHD.
Holdings Overlap
FDT and SCHD share 0 holdings out of 395 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, FDT or SCHD?
FDT has an expense ratio of 0.80% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $74 per year of difference.
Which performed better, FDT or SCHD?
Over the past year FDT returned +34.44% vs +30.90% for SCHD, so FDT leads on 1-year performance. Over the longest common window we track (15 years), FDT annualized +5.64% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FDT or SCHD?
FDT has been the more volatile fund at 17.1% annualized versus 13.6% for SCHD. Worst drawdown: FDT -48.6% vs SCHD -33.4%.
Should I hold both FDT and SCHD?
FDT and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDT and SCHD?
FDT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 395 unique securities.
Which pays a higher dividend, FDT or SCHD?
FDT yields 2.88% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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