FTCE vs SCHD
First Trust New Constructs Core Earnings Leaders ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | FTCE | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $87M | $108.7B | |
| Dividend Yield | 0.66% | 3.13% | |
| Holdings | 103 | 104 | |
| YTD Return | +11.99% | +25.69% | |
| 1Y Return | +23.37% | +30.41% | |
| 3Y Return (annualized) | - | +16.03% | |
| 5Y Return (annualized) | - | +9.64% | |
| Volatility (annualized) | 15.1% | 13.6% | |
| Max Drawdown | -18.1% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 2, 2024 | Oct 20, 2011 |
FTCE vs SCHD Performance
First Trust New Constructs Core Earnings Leaders ETF (FTCE) 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 FTCE returned +23.37% while SCHD returned +30.41%. Year to date, FTCE is up 11.99% versus a gain of 25.69% for SCHD.
Risk: Volatility and Drawdowns
FTCE has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -18.1% for FTCE 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTCE 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, FTCE currently yields 0.66% against 3.13% for SCHD.
Holdings Overlap
FTCE and SCHD share 12 holdings out of 188 unique holdings combined, representing a 13.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTCE or SCHD?
FTCE 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, FTCE or SCHD?
Over the past year FTCE returned +23.37% vs +30.41% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), FTCE annualized +20.52% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTCE or SCHD?
FTCE has been the more volatile fund at 15.1% annualized versus 13.6% for SCHD. Worst drawdown: FTCE -18.1% vs SCHD -33.4%.
Should I hold both FTCE and SCHD?
FTCE and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTCE and SCHD?
FTCE and SCHD share 12 common holdings with a 13.1% weight overlap. Combined, they hold 188 unique securities.
Which pays a higher dividend, FTCE or SCHD?
FTCE yields 0.66% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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