FTHI vs SCHD
First Trust BuyWrite Income ETF vs Schwab US Dividend Equity ETF
Which is better, FTHI or SCHD?
Long-Short Strategy against Large Cap Value.
SCHD has a lower expense ratio. FTHI led over 5Y, SCHD over 1Y, 3Y and the full window. FTHI is less concentrated, with 33.0% 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 | FTHI | SCHD |
|---|---|---|
| Expense Ratio | 0.75% | 0.06%Best |
| AUM | $2.5B | $112.1B |
| Dividend Yield | 8.86% | 3.00% |
| Holdings | 352 | 103 |
| YTD Return | +6.57% | +24.23%Best |
| 1Y Return | +9.18% | +27.90%Best |
| 3Y Return (annualized) | +13.62% | +15.55%Best |
| 5Y Return (annualized) | +10.91%Best | +9.97% |
| Volatility (annualized) | 11.4%Best | 14.3% |
| Max Drawdown | -35.5% | -33.4%Best |
| $10,000 over 5 years | $16,782Best | $16,083 |
| Top 10 Weight | 33.0%Best | 41.8% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Long-Short Strategy | Large Cap Value |
| Inception | Jan 6, 2014 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jan 7, 2014 to Sep 17, 2026 (12.7 years).
FTHI 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 12.7 years both funds cover.
FTHI vs SCHD Performance
First Trust BuyWrite Income ETF (FTHI) 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 FTHI returned +9.18% while SCHD returned +27.90%. Year to date, FTHI is up 6.57% versus a gain of 24.23% for SCHD.
Over three years, FTHI compounded at +13.62% per year against +15.55% for SCHD; over five years the annualized figures are +10.91% and +9.97% respectively. Across the full 13-year window we track, SCHD has the edge at +10.08% annualized vs +4.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 11.4% for FTHI. 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 -35.5% for FTHI 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTHI charges 0.75% per year while SCHD charges 0.06%. On a $10,000 position that is $75 vs $6 annually, a gap of $69 per year that compounds over a long holding period. On income, FTHI currently yields 8.86% against 3.00% for SCHD.
Holdings Overlap
5.8% of FTHI's money is in holdings SCHD also owns. 23.6% of SCHD's money is in holdings FTHI also owns.
SCHD and FTHI share little of their money.
10 positions in common, counted across the 168 positions we hold weights for in FTHI and 100 in SCHD, against full books of 352 and 103.
What only one of them owns
Our book lists 89 positions for SCHD that do not appear in our book for FTHI (76.3% of the fund), and 128 for FTHI that do not appear in SCHD (79.7%).
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 FTHI | Weight in SCHD | Difference |
|---|---|---|---|
| AMGNAmgen Inc. | 1.60% | 4.70% | 3.10% |
| MRKMerck & Company Inc | 0.43% | 4.77% | 4.34% |
| KOCoca Cola Co. | 0.55% | 4.17% | 3.62% |
| CVXChevron Corp | 0.59% | 4.02% | 3.43% |
| MOAltria Group Inc | 0.79% | 2.79% | 2.00% |
| UPSUnited Parcel Service, Inc | 0.56% | 1.90% | 1.34% |
| DINOHF Sinclair Corp | 0.60% | 0.38% | 0.22% |
| APAApa Corp | 0.37% | 0.37% | 0.00% |
| EWBCEast West Bancorp, Inc. | 0.26% | 0.42% | 0.16% |
| CVBFCvb Financial Corp. | 0.09% | 0.09% | 0.00% |
23.6% of SCHD is already inside FTHI.
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, FTHI or SCHD?
FTHI has an expense ratio of 0.75% while SCHD charges 0.06%. SCHD is the cheaper option, by $69 a year on a $10,000 investment.
Which performed better, FTHI or SCHD?
Over the past year FTHI returned +9.18% vs +27.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FTHI annualized +4.98% vs +10.08% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTHI or SCHD?
SCHD has been the more volatile fund at 14.3% annualized versus 11.4% for FTHI. Worst drawdown: FTHI -35.5% vs SCHD -33.4%.
Should I hold both FTHI and SCHD?
FTHI and SCHD have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FTHI and SCHD?
23.6% of SCHD's money is in holdings FTHI also owns. 23.6% of SCHD's is in holdings FTHI also owns. They hold 10 positions in common, counted across the 168 positions we hold weights for in FTHI and 100 in SCHD.
Which pays a higher dividend, FTHI or SCHD?
FTHI yields 8.86% while SCHD yields 3.00%, so FTHI currently pays the higher dividend yield.
Is SCHD better than FTHI?
SCHD has a lower expense ratio. FTHI led over 5Y, SCHD over 1Y, 3Y and the full window. FTHI is less concentrated, with 33.0% 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.