FTCB vs SCHQ
First Trust Core Investment Grade ETF vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. FTCB delivered stronger 1-year returns. FTCB offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | FTCB | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.03% | |
| AUM | $2.5B | $806M | |
| Dividend Yield | 5.24% | 4.73% | |
| Holdings | 721 | 98 | |
| YTD Return | +0.12% | -2.55% | |
| 1Y Return | +2.43% | -1.03% | |
| 3Y Return (annualized) | - | -0.20% | |
| 5Y Return (annualized) | - | -6.80% | |
| Volatility (annualized) | 5.1% | 13.5% | |
| Max Drawdown | -5.0% | -46.7% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Fixed Income | |
| Inception | Nov 7, 2023 | Oct 10, 2019 |
FTCB vs SCHQ Performance
First Trust Core Investment Grade ETF (FTCB) is a ETF from First Trust Portfolios (US) and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year FTCB returned +2.43% while SCHQ returned -1.03%. Year to date, FTCB is up 0.12% versus a loss of 2.55% for SCHQ.
Risk: Volatility and Drawdowns
SCHQ has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 5.1% for FTCB. 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 -5.0% for FTCB and -46.7% for SCHQ. 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FTCB charges 0.56% per year while SCHQ charges 0.03%. On a $10,000 position that is $56 vs $3 annually, a gap of $53 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 4.73% for SCHQ.
Frequently Asked Questions
Which is cheaper, FTCB or SCHQ?
FTCB has an expense ratio of 0.56% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, FTCB or SCHQ?
Over the past year FTCB returned +2.43% vs -1.03% for SCHQ, so FTCB leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.77% vs -4.41% for SCHQ. Past performance does not guarantee future results.
Which is riskier, FTCB or SCHQ?
SCHQ has been the more volatile fund at 13.5% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs SCHQ -46.7%.
Should I hold both FTCB and SCHQ?
FTCB and SCHQ have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
Which pays a higher dividend, FTCB or SCHQ?
FTCB yields 5.24% while SCHQ yields 4.73%, so FTCB currently pays the higher dividend yield.
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