FLAO vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricFLAOSCHDWinner
Expense Ratio0.74%0.06%
AUM$9M$103.7B
Dividend Yield0.00%3.31%
Holdings4104
YTD Return+0.37%+25.62%
1Y Return+3.04%+32.62%
3Y Return (annualized)-+15.58%
5Y Return (annualized)-+9.63%
Volatility (annualized)6.8%13.6%
Max Drawdown-10.1%-33.4%
Fund FamilyAllianzIMCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionMar 28, 2024Oct 20, 2011

FLAO vs SCHD Performance

AllianzIM US Equity 6 Month Floor5 Apr/Oct ETF (FLAO) is a ETF from AllianzIM and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FLAO returned +3.04% while SCHD returned +32.62%. Year to date, FLAO is up 0.37% versus a gain of 25.62% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 6.8% for FLAO. 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 -10.1% for FLAO 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FLAO charges 0.74% per year while SCHD charges 0.06%. On a $10,000 position that is $74 vs $6 annually, a gap of $68 per year that compounds over a long holding period. On income, FLAO currently yields 0.00% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, FLAO or SCHD?

FLAO has an expense ratio of 0.74% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $68 per year of difference.

Which performed better, FLAO or SCHD?

Over the past year FLAO returned +3.04% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), FLAO annualized +5.78% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, FLAO or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 6.8% for FLAO. Worst drawdown: FLAO -10.1% vs SCHD -33.4%.

Should I hold both FLAO and SCHD?

FLAO and SCHD have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FLAO or SCHD?

FLAO yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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