FFC vs SCHD
FFC vs SCHD
Flaherty & Crumrine Preferred Securities Income Fund Incorporated vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FFC offers more diversification with 184 holdings.
Side-by-Side Comparison
| Metric | FFC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.23% | 0.06% | |
| AUM | $829M | $103.7B | |
| Dividend Yield | 7.03% | 3.31% | |
| Holdings | 252 | 104 | |
| YTD Return | +2.05% | +24.26% | |
| 1Y Return | +7.52% | +31.38% | |
| 3Y Return (annualized) | +13.38% | +15.08% | |
| 5Y Return (annualized) | +0.44% | +9.72% | |
| Volatility (annualized) | 19.9% | 13.6% | |
| Max Drawdown | -84.5% | -33.4% | |
| Fund Family | Flaherty & Crumrine | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 31, 2003 | Oct 20, 2011 |
FFC vs SCHD Performance
Flaherty & Crumrine Preferred Securities Income Fund Incorporated (FFC) is a ETF from Flaherty & Crumrine and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FFC returned +7.52% while SCHD returned +31.38%. Year to date, FFC is up 2.05% versus a gain of 24.26% for SCHD.
Over three years, FFC compounded at +13.38% per year against +15.08% for SCHD; over five years the annualized figures are +0.44% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFC has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -84.5% for FFC 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FFC charges 1.23% per year while SCHD charges 0.06%. On a $10,000 position that is $123 vs $6 annually, a gap of $117 per year that compounds over a long holding period. On income, FFC currently yields 7.03% against 3.31% for SCHD.
Holdings Overlap
FFC and SCHD share 1 holdings out of 283 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FFC | Weight in SCHD | Difference |
|---|---|---|---|
| FITB | 0.36% | 1.35% | 0.99% |
Frequently Asked Questions
Which is cheaper, FFC or SCHD?
FFC has an expense ratio of 1.23% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $117 per year of difference.
Which performed better, FFC or SCHD?
Over the past year FFC returned +7.52% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FFC annualized -0.12% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FFC or SCHD?
FFC has been the more volatile fund at 19.9% annualized versus 13.6% for SCHD. Worst drawdown: FFC -84.5% vs SCHD -33.4%.
Should I hold both FFC and SCHD?
FFC and SCHD have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFC and SCHD?
FFC and SCHD share 1 common holdings with a 0.4% weight overlap. Combined, they hold 283 unique securities.
Which pays a higher dividend, FFC or SCHD?
FFC yields 7.03% while SCHD yields 3.31%, so FFC currently pays the higher dividend yield.
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