FPF vs SCHD
FPF vs SCHD
First Trust Intermediate Duration Preferred & Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FPF offers more diversification with 170 holdings.
Side-by-Side Comparison
| Metric | FPF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.78% | 0.06% | |
| AUM | $1.8B | $103.7B | |
| Dividend Yield | 8.64% | 3.31% | |
| Holdings | 230 | 104 | |
| YTD Return | -0.90% | +24.26% | |
| 1Y Return | +1.62% | +31.38% | |
| 3Y Return (annualized) | +14.14% | +15.08% | |
| 5Y Return (annualized) | +0.65% | +9.72% | |
| Volatility (annualized) | 14.9% | 13.6% | |
| Max Drawdown | -54.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | May 24, 2013 | Oct 20, 2011 |
FPF vs SCHD Performance
First Trust Intermediate Duration Preferred & Income Fund (FPF) 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 FPF returned +1.62% while SCHD returned +31.38%. Year to date, FPF is down 0.90% versus a gain of 24.26% for SCHD.
Over three years, FPF compounded at +14.14% per year against +15.08% for SCHD; over five years the annualized figures are +0.65% and +9.72% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +0.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FPF has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -54.6% for FPF 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPF charges 1.78% per year while SCHD charges 0.06%. On a $10,000 position that is $178 vs $6 annually, a gap of $172 per year that compounds over a long holding period. On income, FPF currently yields 8.64% against 3.31% for SCHD.
Holdings Overlap
FPF and SCHD share 1 holdings out of 269 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FPF | Weight in SCHD | Difference |
|---|---|---|---|
| F | 0.26% | 1.44% | 1.18% |
Frequently Asked Questions
Which is cheaper, FPF or SCHD?
FPF has an expense ratio of 1.78% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $172 per year of difference.
Which performed better, FPF or SCHD?
Over the past year FPF returned +1.62% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FPF annualized +0.73% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FPF or SCHD?
FPF has been the more volatile fund at 14.9% annualized versus 13.6% for SCHD. Worst drawdown: FPF -54.6% vs SCHD -33.4%.
Should I hold both FPF and SCHD?
FPF and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPF and SCHD?
FPF and SCHD share 1 common holdings with a 0.3% weight overlap. Combined, they hold 269 unique securities.
Which pays a higher dividend, FPF or SCHD?
FPF yields 8.64% while SCHD yields 3.31%, so FPF currently pays the higher dividend yield.
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