FPE vs SCHD
First Trust Preferred Securities and Income ETF vs Schwab US Dividend Equity ETF
Which is better, FPE or SCHD?
Preferred Stock 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 | FPE | SCHD |
|---|---|---|
| Expense Ratio | 0.83% | 0.06%Best |
| AUM | $6.3B | $112.2B |
| Dividend Yield | 5.89% | 3.13% |
| Holdings | 261 | 103 |
| YTD Return | +0.28% | +27.56%Best |
| 1Y Return | +2.72% | +30.29%Best |
| 3Y Return (annualized) | +9.09% | +16.37%Best |
| 5Y Return (annualized) | +2.47% | +10.23%Best |
| Volatility (annualized) | 8.4%Best | 14.1% |
| Max Drawdown | -34.8% | -33.4%Best |
| $10,000 over 5 years | $11,298 | $16,274Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Feb 11, 2013 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 12, 2013 to Sep 4, 2026 (13.6 years).
FPE 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
FPE vs SCHD Performance
First Trust Preferred Securities and Income ETF (FPE) 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 FPE returned +2.72% while SCHD returned +30.29%. Year to date, FPE is up 0.28% versus a gain of 27.56% for SCHD.
Over three years, FPE compounded at +9.09% per year against +16.37% for SCHD; over five years the annualized figures are +2.47% and +10.23% respectively. Across the full 14-year window we track, SCHD has the edge at +11.12% annualized vs +1.32%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 8.4% for FPE. 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 -34.8% for FPE 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 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FPE charges 0.83% per year while SCHD charges 0.06%. On a $10,000 position that is $83 vs $6 annually, a gap of $77 per year that compounds over a long holding period. On income, FPE currently yields 5.89% against 3.13% for SCHD.
Holdings Overlap
At least 1.3% of SCHD's money is in holdings FPE also owns.
Stated as a floor: for FPE, our book for it covers 75.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and FPE share little of their money.
1 positions in common, counted across the 198 positions we hold weights for in FPE and 100 in SCHD, against full books of 261 and 103.
Top Shared Holdings
| Stock | Weight in FPE | Weight in SCHD | Difference |
|---|---|---|---|
| FITBFifth Third Bancorp | 0.00% | 1.30% | 1.30% |
You are not choosing between two funds in isolation.
Whichever of FPE 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, FPE or SCHD?
FPE has an expense ratio of 0.83% while SCHD charges 0.06%. SCHD is the cheaper option, by $77 a year on a $10,000 investment.
Which performed better, FPE or SCHD?
Over the past year FPE returned +2.72% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), FPE annualized +1.32% vs +11.12% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FPE or SCHD?
SCHD has been the more volatile fund at 14.1% annualized versus 8.4% for FPE. Worst drawdown: FPE -34.8% vs SCHD -33.4%.
Should I hold both FPE and SCHD?
FPE and SCHD have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FPE and SCHD?
At least 1.3% of SCHD's money is in holdings FPE also owns. Our book for FPE is partial, so the real figure is this or higher. They hold 1 positions in common, counted across the 198 positions we hold weights for in FPE and 100 in SCHD.
Which pays a higher dividend, FPE or SCHD?
FPE yields 5.89% while SCHD yields 3.13%, so FPE currently pays the higher dividend yield.
Is SCHD better than FPE?
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.