FLQS vs SCHD
Franklin US Small Cap Multifactor Index ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FLQS offers more diversification with 499 holdings.
Side-by-Side Comparison
| Metric | FLQS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $53M | $108.7B | |
| Dividend Yield | 1.33% | 3.13% | |
| Holdings | 499 | 104 | |
| YTD Return | +16.45% | +25.69% | |
| 1Y Return | +17.98% | +30.41% | |
| 3Y Return (annualized) | +13.54% | +16.03% | |
| 5Y Return (annualized) | +6.96% | +9.64% | |
| Volatility (annualized) | 18.6% | 13.6% | |
| Max Drawdown | -42.2% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2017 | Oct 20, 2011 |
FLQS vs SCHD Performance
Franklin US Small Cap Multifactor Index ETF (FLQS) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FLQS returned +17.98% while SCHD returned +30.41%. Year to date, FLQS is up 16.45% versus a gain of 25.69% for SCHD.
Over three years, FLQS compounded at +13.54% per year against +16.03% for SCHD; over five years the annualized figures are +6.96% and +9.64% respectively. Across the full 9-year window we track, SCHD has the edge at +11.46% annualized vs +8.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FLQS has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -42.2% for FLQS 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FLQS charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, FLQS currently yields 1.33% against 3.13% for SCHD.
Holdings Overlap
FLQS and SCHD share 16 holdings out of 575 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLQS or SCHD?
FLQS has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, FLQS or SCHD?
Over the past year FLQS returned +17.98% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), FLQS annualized +8.95% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, FLQS or SCHD?
FLQS has been the more volatile fund at 18.6% annualized versus 13.6% for SCHD. Worst drawdown: FLQS -42.2% vs SCHD -33.4%.
Should I hold both FLQS and SCHD?
FLQS and SCHD have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLQS and SCHD?
FLQS and SCHD share 16 common holdings with a 0.7% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, FLQS or SCHD?
FLQS yields 1.33% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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