FRA vs SCHD

FRA vs SCHD

Which is better, FRA or SCHD?

Bank Loan against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

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

MetricFRASCHD
Expense Ratio2.97%0.06%Best
AUM$402M$112.1B
Dividend Yield13.10%3.00%
Holdings469103
YTD Return-1.38%+21.73%Best
1Y Return-8.10%+26.35%Best
3Y Return (annualized)+6.36%+16.02%Best
5Y Return (annualized)+5.97%+9.26%Best
Volatility (annualized)11.2%Best13.7%
Max Drawdown-42.8%-33.4%Best
$10,000 over 5 years$13,363$15,571Best
Fund FamilyBlackRock, Inc. (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
StyleBank LoanLarge Cap Value
InceptionOct 31, 2003Oct 20, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 25, 2026 (14.9 years).

FRA 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 covers the 14.9 years both funds cover.

FRA vs SCHD Performance

Blackrock Floating Rate Income Strategies Fund Inc (FRA) is an ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FRA returned -8.10% while SCHD returned +26.35%. Year to date, FRA is down 1.38% versus a gain of 21.73% for SCHD.

Over three years, FRA compounded at +6.36% per year against +16.02% for SCHD; over five years the annualized figures are +5.97% and +9.26% respectively. Across the full 15-year window we track, SCHD has the edge at +11.13% annualized vs +6.52%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 11.2% for FRA. 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 -42.8% for FRA 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 0.58. They move together some of the time, and apart the rest.

Fees and Cost Over Time

FRA charges 2.97% per year while SCHD charges 0.06%. On a $10,000 position that is $297 vs $6 annually, a gap of $291 per year that compounds over a long holding period. On income, FRA currently yields 13.10% against 3.00% for SCHD.

Holdings Overlap

We hold position weights for 221 holdings in FRA and 100 in SCHD, totalling 76.2% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

The two holdings books were reported 243 days apart, FRA as of Dec 31, 2025 and SCHD as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.

0 positions in common, counted across the 221 positions we hold weights for in FRA and 100 in SCHD, against full books of 469 and 103.

You are not choosing between two funds in isolation.

Whichever of FRA and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

FRASCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FRA or SCHD?

FRA has an expense ratio of 2.97% while SCHD charges 0.06%. SCHD is the cheaper option, by $291 a year on a $10,000 investment.

Which performed better, FRA or SCHD?

Over the past year FRA returned -8.10% vs +26.35% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FRA annualized +6.52% vs +11.13% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FRA or SCHD?

SCHD has been the more volatile fund at 13.7% annualized versus 11.2% for FRA. Worst drawdown: FRA -42.8% vs SCHD -33.4%.

Should I hold both FRA and SCHD?

FRA and SCHD have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, FRA or SCHD?

FRA yields 13.10% while SCHD yields 3.00%, so FRA currently pays the higher dividend yield.

Is SCHD better than FRA?

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.