FSIG vs SCHD
First Trust Limited Duration Investment Grade Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FSIG offers more diversification with 227 holdings.
Side-by-Side Comparison
| Metric | FSIG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.44% | 0.06% | |
| AUM | $1.5B | $103.7B | |
| Dividend Yield | 4.80% | 3.31% | |
| Holdings | 322 | 104 | |
| YTD Return | +0.91% | +24.26% | |
| 1Y Return | +2.79% | +31.38% | |
| 3Y Return (annualized) | +5.02% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 3.2% | 13.6% | |
| Max Drawdown | -6.9% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 17, 2021 | Oct 20, 2011 |
FSIG vs SCHD Performance
First Trust Limited Duration Investment Grade Corporate ETF (FSIG) 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 FSIG returned +2.79% while SCHD returned +31.38%. Year to date, FSIG is up 0.91% versus a gain of 24.26% for SCHD.
Over three years, FSIG compounded at +5.02% per year against +15.08% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +2.72%. 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 3.2% for FSIG. 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 -6.9% for FSIG 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSIG charges 0.44% per year while SCHD charges 0.06%. On a $10,000 position that is $44 vs $6 annually, a gap of $38 per year that compounds over a long holding period. On income, FSIG currently yields 4.80% against 3.31% for SCHD.
Holdings Overlap
FSIG and SCHD share 0 holdings out of 327 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, FSIG or SCHD?
FSIG has an expense ratio of 0.44% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, FSIG or SCHD?
Over the past year FSIG returned +2.79% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FSIG annualized +2.72% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FSIG or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.2% for FSIG. Worst drawdown: FSIG -6.9% vs SCHD -33.4%.
Should I hold both FSIG and SCHD?
FSIG and SCHD have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSIG and SCHD?
FSIG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 327 unique securities.
Which pays a higher dividend, FSIG or SCHD?
FSIG yields 4.80% while SCHD yields 3.31%, so FSIG currently pays the higher dividend yield.
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