FPE vs SCHD
First Trust Preferred Securities and Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FPE offers more diversification with 260 holdings.
Side-by-Side Comparison
| Metric | FPE | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.06% | |
| AUM | $6.3B | $108.7B | |
| Dividend Yield | 5.89% | 3.13% | |
| Holdings | 260 | 104 | |
| YTD Return | +0.74% | +26.54% | |
| 1Y Return | +3.82% | +30.90% | |
| 3Y Return (annualized) | +9.35% | +16.29% | |
| 5Y Return (annualized) | +2.63% | +9.65% | |
| Volatility (annualized) | 8.4% | 13.6% | |
| Max Drawdown | -34.8% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 11, 2013 | Oct 20, 2011 |
FPE vs SCHD Performance
First Trust Preferred Securities and Income ETF (FPE) 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 FPE returned +3.82% while SCHD returned +30.90%. Year to date, FPE is up 0.74% versus a gain of 26.54% for SCHD.
Over three years, FPE compounded at +9.35% per year against +16.29% for SCHD; over five years the annualized figures are +2.63% and +9.65% respectively. Across the full 14-year window we track, SCHD has the edge at +11.51% annualized vs +1.36%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPE charges 0.85% per year while SCHD charges 0.06%. On a $10,000 position that is $85 vs $6 annually, a gap of $79 per year that compounds over a long holding period. On income, FPE currently yields 5.89% against 3.13% for SCHD.
Holdings Overlap
FPE and SCHD share 1 holdings out of 300 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FPE | Weight in SCHD | Difference |
|---|---|---|---|
| FITB | 0.00% | 1.30% | 1.30% |
Frequently Asked Questions
Which is cheaper, FPE or SCHD?
FPE has an expense ratio of 0.85% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, FPE or SCHD?
Over the past year FPE returned +3.82% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), FPE annualized +1.36% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FPE or SCHD?
SCHD has been the more volatile fund at 13.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPE and SCHD?
FPE and SCHD share 1 common holdings with a 0.0% weight overlap. Combined, they hold 300 unique securities.
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.
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