FTA vs SCHD
First Trust Large Cap Value AlphaDEX Fund vs Schwab US Dividend Equity ETF
Which is better, FTA or SCHD?
Each has led over a different period.
SCHD has a lower expense ratio. FTA led over 3Y and 5Y, SCHD over 1Y and the full window. The two have moved almost in lockstep, correlation 0.91. FTA is less concentrated, with 11.0% of the fund in its ten largest positions against 41.8%.
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
| Metric | FTA | SCHD |
|---|---|---|
| Expense Ratio | 0.58% | 0.06%Best |
| AUM | $1.4B | $112.1B |
| Dividend Yield | 1.59% | 3.00% |
| Holdings | 376 | 103 |
| YTD Return | +15.64% | +24.04%Best |
| 1Y Return | +22.93% | +27.95%Best |
| 3Y Return (annualized) | +16.32%Best | +15.51% |
| 5Y Return (annualized) | +10.86%Best | +9.80% |
| Volatility (annualized) | 16.7% | 13.6%Best |
| Max Drawdown | -45.5% | -33.4%Best |
| $10,000 over 5 years | $16,745Best | $15,959 |
| Top 10 Weight | 11.0%Best | 41.8% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | May 8, 2007 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 16, 2026 (14.9 years).
FTA 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.
FTA vs SCHD Performance
First Trust Large Cap Value AlphaDEX Fund (FTA) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FTA returned +22.93% while SCHD returned +27.95%. Year to date, FTA is up 15.64% versus a gain of 24.04% for SCHD.
Over three years, FTA compounded at +16.32% per year against +15.51% for SCHD; over five years the annualized figures are +10.86% and +9.80% respectively. Across the full 15-year window we track, SCHD has the edge at +11.29% annualized vs +10.29%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTA has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -45.5% for FTA 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FTA charges 0.58% per year while SCHD charges 0.06%. On a $10,000 position that is $58 vs $6 annually, a gap of $52 per year that compounds over a long holding period. On income, FTA currently yields 1.59% against 3.00% for SCHD.
Holdings Overlap
14.1% of FTA's money is in holdings SCHD also owns. 52.1% of SCHD's money is in holdings FTA also owns.
The two portfolios partly overlap.
24 positions in common, counted across the 187 positions we hold weights for in FTA and 100 in SCHD, against full books of 376 and 103.
What only one of them owns
Our book lists 75 positions for SCHD that do not appear in our book for FTA (47.9% of the fund), and 159 for FTA that do not appear in SCHD (83.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FTA | Weight in SCHD | Difference |
|---|---|---|---|
| ABTAbbott Laboratories | 0.41% | 4.69% | 4.28% |
| COPConocophillips Common Stock USD 0.01 | 1.08% | 3.94% | 2.86% |
| VZVerizon Communic | 1.00% | 3.97% | 2.97% |
| CVXChevron Corp | 0.84% | 4.02% | 3.18% |
| PGProcter & Gamble Company | 0.34% | 3.83% | 3.49% |
| HDHome Depot Inc/The | 0.15% | 3.88% | 3.73% |
| BMYBristol-Myers Squibb Co. | 0.57% | 3.33% | 2.76% |
| PEPPepsico Inc. | 0.17% | 3.64% | 3.47% |
| CMCSAComcast Corp-class A Cmcsa | 0.92% | 2.31% | 1.39% |
| MOAltria Group Inc | 0.32% | 2.79% | 2.47% |
52.1% of SCHD is already inside FTA.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTA or SCHD?
FTA has an expense ratio of 0.58% while SCHD charges 0.06%. SCHD is the cheaper option, by $52 a year on a $10,000 investment.
Which performed better, FTA or SCHD?
Over the past year FTA returned +22.93% vs +27.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FTA annualized +10.29% vs +11.29% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTA or SCHD?
FTA has been the more volatile fund at 16.7% annualized versus 13.6% for SCHD. Worst drawdown: FTA -45.5% vs SCHD -33.4%.
Should I hold both FTA and SCHD?
FTA and SCHD have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FTA and SCHD?
52.1% of SCHD's money is in holdings FTA also owns. 52.1% of SCHD's is in holdings FTA also owns. They hold 24 positions in common, counted across the 187 positions we hold weights for in FTA and 100 in SCHD.
Which pays a higher dividend, FTA or SCHD?
FTA yields 1.59% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FTA?
SCHD has a lower expense ratio. FTA led over 3Y and 5Y, SCHD over 1Y and the full window. The two have moved almost in lockstep, correlation 0.91. FTA is less concentrated, with 11.0% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.