FNK vs SCHD
First Trust Mid Cap Value AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FNK offers more diversification with 225 holdings.
Side-by-Side Comparison
| Metric | FNK | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.74% | 0.06% | |
| AUM | $227M | $103.7B | |
| Dividend Yield | 1.56% | 3.31% | |
| Holdings | 226 | 104 | |
| YTD Return | +15.48% | +25.62% | |
| 1Y Return | +25.11% | +32.62% | |
| 3Y Return (annualized) | +12.17% | +15.58% | |
| 5Y Return (annualized) | +8.77% | +9.63% | |
| Volatility (annualized) | 20.4% | 13.6% | |
| Max Drawdown | -52.1% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2011 | Oct 20, 2011 |
FNK vs SCHD Performance
First Trust Mid Cap Value AlphaDEX Fund (FNK) 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 FNK returned +25.11% while SCHD returned +32.62%. Year to date, FNK is up 15.48% versus a gain of 25.62% for SCHD.
Over three years, FNK compounded at +12.17% per year against +15.58% for SCHD; over five years the annualized figures are +8.77% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +8.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FNK has been the more volatile fund, with annualized monthly volatility of 20.4% 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 -52.1% for FNK 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FNK 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, FNK currently yields 1.56% against 3.31% for SCHD.
Holdings Overlap
FNK and SCHD share 15 holdings out of 310 unique holdings combined, representing a 3.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNK or SCHD?
FNK 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, FNK or SCHD?
Over the past year FNK returned +25.11% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FNK annualized +8.46% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, FNK or SCHD?
FNK has been the more volatile fund at 20.4% annualized versus 13.6% for SCHD. Worst drawdown: FNK -52.1% vs SCHD -33.4%.
Should I hold both FNK and SCHD?
FNK and SCHD have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNK and SCHD?
FNK and SCHD share 15 common holdings with a 3.2% weight overlap. Combined, they hold 310 unique securities.
Which pays a higher dividend, FNK or SCHD?
FNK yields 1.56% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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