FEMS vs SCHD
First Trust Emerging Markets Small Cap AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FEMS offers more diversification with 218 holdings.
Side-by-Side Comparison
| Metric | FEMS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.06% | |
| AUM | $254M | $108.7B | |
| Dividend Yield | 4.43% | 3.13% | |
| Holdings | 218 | 104 | |
| YTD Return | +9.51% | +26.54% | |
| 1Y Return | +11.89% | +30.90% | |
| 3Y Return (annualized) | +11.07% | +16.29% | |
| 5Y Return (annualized) | +5.67% | +9.65% | |
| Volatility (annualized) | 19.2% | 13.6% | |
| Max Drawdown | -52.3% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 15, 2012 | Oct 20, 2011 |
FEMS vs SCHD Performance
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) 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 FEMS returned +11.89% while SCHD returned +30.90%. Year to date, FEMS is up 9.51% versus a gain of 26.54% for SCHD.
Over three years, FEMS compounded at +11.07% per year against +16.29% for SCHD; over five years the annualized figures are +5.67% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +4.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEMS has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -52.3% for FEMS 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FEMS 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, FEMS currently yields 4.43% against 3.13% for SCHD.
Holdings Overlap
FEMS and SCHD share 0 holdings out of 303 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, FEMS or SCHD?
FEMS 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, FEMS or SCHD?
Over the past year FEMS returned +11.89% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FEMS annualized +4.63% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FEMS or SCHD?
FEMS has been the more volatile fund at 19.2% annualized versus 13.6% for SCHD. Worst drawdown: FEMS -52.3% vs SCHD -33.4%.
Should I hold both FEMS and SCHD?
FEMS and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEMS and SCHD?
FEMS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 303 unique securities.
Which pays a higher dividend, FEMS or SCHD?
FEMS yields 4.43% while SCHD yields 3.13%, so FEMS currently pays the higher dividend yield.
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