FSCS vs SCHD
First Trust SMID Capital Strength ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns.
Side-by-Side Comparison
| Metric | FSCS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $58M | $103.7B | |
| Dividend Yield | 0.91% | 3.31% | |
| Holdings | 101 | 104 | |
| YTD Return | +8.22% | +24.26% | |
| 1Y Return | +8.25% | +31.38% | |
| 3Y Return (annualized) | +10.41% | +15.08% | |
| 5Y Return (annualized) | +7.07% | +9.72% | |
| Volatility (annualized) | 19.6% | 13.6% | |
| Max Drawdown | -43.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Oct 20, 2011 |
FSCS vs SCHD Performance
First Trust SMID Capital Strength ETF (FSCS) 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 FSCS returned +8.25% while SCHD returned +31.38%. Year to date, FSCS is up 8.22% versus a gain of 24.26% for SCHD.
Over three years, FSCS compounded at +10.41% per year against +15.08% for SCHD; over five years the annualized figures are +7.07% and +9.72% respectively. Across the full 9-year window we track, SCHD has the edge at +11.39% annualized vs +8.43%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FSCS has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -43.6% for FSCS 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FSCS charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, FSCS currently yields 0.91% against 3.31% for SCHD.
Holdings Overlap
FSCS and SCHD share 17 holdings out of 183 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FSCS or SCHD?
FSCS has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, FSCS or SCHD?
Over the past year FSCS returned +8.25% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), FSCS annualized +8.43% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FSCS or SCHD?
FSCS has been the more volatile fund at 19.6% annualized versus 13.6% for SCHD. Worst drawdown: FSCS -43.6% vs SCHD -33.4%.
Should I hold both FSCS and SCHD?
FSCS and SCHD have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSCS and SCHD?
FSCS and SCHD share 17 common holdings with a 5.3% weight overlap. Combined, they hold 183 unique securities.
Which pays a higher dividend, FSCS or SCHD?
FSCS yields 0.91% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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