FPEI vs SCHD
First Trust Institutional 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. FPEI offers more diversification with 176 holdings.
Side-by-Side Comparison
| Metric | FPEI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.06% | |
| AUM | $1.9B | $108.7B | |
| Dividend Yield | 5.82% | 3.13% | |
| Holdings | 176 | 104 | |
| YTD Return | +2.06% | +26.54% | |
| 1Y Return | +5.36% | +30.90% | |
| 3Y Return (annualized) | +9.77% | +16.29% | |
| 5Y Return (annualized) | +3.92% | +9.65% | |
| Volatility (annualized) | 8.1% | 13.6% | |
| Max Drawdown | -27.8% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 22, 2017 | Oct 20, 2011 |
FPEI vs SCHD Performance
First Trust Institutional Preferred Securities and Income ETF (FPEI) 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 FPEI returned +5.36% while SCHD returned +30.90%. Year to date, FPEI is up 2.06% versus a gain of 26.54% for SCHD.
Over three years, FPEI compounded at +9.77% per year against +16.29% for SCHD; over five years the annualized figures are +3.92% and +9.65% respectively. Across the full 9-year window we track, SCHD has the edge at +11.51% annualized vs +2.84%. 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 8.1% for FPEI. 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 -27.8% for FPEI 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPEI 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, FPEI currently yields 5.82% against 3.13% for SCHD.
Holdings Overlap
FPEI and SCHD share 0 holdings out of 220 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FPEI or SCHD?
FPEI 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, FPEI or SCHD?
Over the past year FPEI returned +5.36% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), FPEI annualized +2.84% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FPEI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.1% for FPEI. Worst drawdown: FPEI -27.8% vs SCHD -33.4%.
Should I hold both FPEI and SCHD?
FPEI and SCHD have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPEI and SCHD?
FPEI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 220 unique securities.
Which pays a higher dividend, FPEI or SCHD?
FPEI yields 5.82% while SCHD yields 3.13%, so FPEI currently pays the higher dividend yield.
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