FMF vs SCHD
First Trust Managed Futures Strategy Fund vs Schwab US Dividend Equity ETF
Which is better, FMF or SCHD?
Market Neutral Strategy against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FMF | SCHD |
|---|---|---|
| Expense Ratio | 0.98% | 0.06%Best |
| AUM | $272M | $112.2B |
| Dividend Yield | 5.05% | 3.13% |
| Holdings | 10 | 103 |
| YTD Return | +8.62% | +27.56%Best |
| 1Y Return | +12.48% | +30.29%Best |
| 3Y Return (annualized) | +5.70% | +16.37%Best |
| 5Y Return (annualized) | +5.15% | +10.23%Best |
| Volatility (annualized) | 7.3%Best | 14.2% |
| Max Drawdown | -24.8%Best | -33.4% |
| $10,000 over 5 years | $12,854 | $16,274Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Market Neutral Strategy | Large Cap Value |
| Inception | Aug 1, 2013 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 2, 2013 to Sep 4, 2026 (13.1 years).
FMF vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.1 years both funds cover.
FMF vs SCHD Performance
First Trust Managed Futures Strategy Fund (FMF) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FMF returned +12.48% while SCHD returned +30.29%. Year to date, FMF is up 8.62% versus a gain of 27.56% for SCHD.
Over three years, FMF compounded at +5.70% per year against +16.37% for SCHD; over five years the annualized figures are +5.15% and +10.23% respectively. Across the full 13-year window we track, SCHD has the edge at +10.44% annualized vs +1.52%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 7.3% for FMF. 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 -24.8% for FMF and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.14. They move largely independently of each other.
Fees and Cost Over Time
FMF charges 0.98% per year while SCHD charges 0.06%. On a $10,000 position that is $98 vs $6 annually, a gap of $92 per year that compounds over a long holding period. On income, FMF currently yields 5.05% against 3.13% for SCHD.
Holdings Overlap
We hold position weights for 2 holdings in FMF and 100 in SCHD, totalling 8.1% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2 positions we hold weights for in FMF and 100 in SCHD, against full books of 10 and 103.
You are not choosing between two funds in isolation.
Whichever of FMF and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FMF or SCHD?
FMF has an expense ratio of 0.98% while SCHD charges 0.06%. SCHD is the cheaper option, by $92 a year on a $10,000 investment.
Which performed better, FMF or SCHD?
Over the past year FMF returned +12.48% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FMF annualized +1.52% vs +10.44% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FMF or SCHD?
SCHD has been the more volatile fund at 14.2% annualized versus 7.3% for FMF. Worst drawdown: FMF -24.8% vs SCHD -33.4%.
Should I hold both FMF and SCHD?
FMF and SCHD have a monthly-return correlation of 0.14, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FMF or SCHD?
FMF yields 5.05% while SCHD yields 3.13%, so FMF currently pays the higher dividend yield.
Is SCHD better than FMF?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.