FTHY vs SCHD
First Trust High Yield Opportunities 2027 Term Fund vs Schwab US Dividend Equity ETF
Which is better, FTHY or SCHD?
SCHD has been ahead.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. FTHY is less concentrated, with 16.1% 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 | FTHY | SCHD |
|---|---|---|
| Expense Ratio | 3.59% | 0.06%Best |
| AUM | $644M | $112.1B |
| Dividend Yield | 10.78% | 3.00% |
| Holdings | 301 | 103 |
| YTD Return | +0.51% | +24.23%Best |
| 1Y Return | -0.78% | +27.90%Best |
| 3Y Return (annualized) | +10.03% | +15.55%Best |
| 5Y Return (annualized) | +1.50% | +9.97%Best |
| Volatility (annualized) | 11.9%Best | 15.2% |
| Max Drawdown | -31.2% | -16.9%Best |
| $10,000 over 5 years | $10,773 | $16,083Best |
| Top 10 Weight | 16.1%Best | 41.8% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Jun 25, 2020 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Jun 26, 2020 to Sep 17, 2026 (6.2 years).
FTHY 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 6.2 years both funds cover.
FTHY vs SCHD Performance
First Trust High Yield Opportunities 2027 Term Fund (FTHY) 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 FTHY returned -0.78% while SCHD returned +27.90%. Year to date, FTHY is up 0.51% versus a gain of 24.23% for SCHD.
Over three years, FTHY compounded at +10.03% per year against +15.55% for SCHD; over five years the annualized figures are +1.50% and +9.97% respectively. Across the full 6-year window we track, SCHD has the edge at +15.59% annualized vs +2.39%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 11.9% for FTHY. 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 -31.2% for FTHY and -16.9% 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 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FTHY charges 3.59% per year while SCHD charges 0.06%. On a $10,000 position that is $359 vs $6 annually, a gap of $353 per year that compounds over a long holding period. On income, FTHY currently yields 10.78% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 222 holdings in FTHY and 100 in SCHD, totalling 102.9% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 94 days apart, FTHY as of May 29, 2026 and SCHD as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 222 positions we hold weights for in FTHY and 100 in SCHD, against full books of 301 and 103.
What only one of them owns
Our book lists 99 positions for SCHD that do not appear in our book for FTHY (99.9% of the fund), and 221 for FTHY that do not appear in SCHD (102.9%).
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.
You are not choosing between two funds in isolation.
Whichever of FTHY and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTHY or SCHD?
FTHY has an expense ratio of 3.59% while SCHD charges 0.06%. SCHD is the cheaper option, by $353 a year on a $10,000 investment.
Which performed better, FTHY or SCHD?
Over the past year FTHY returned -0.78% vs +27.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), FTHY annualized +2.39% vs +15.59% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTHY or SCHD?
SCHD has been the more volatile fund at 15.2% annualized versus 11.9% for FTHY. Worst drawdown: FTHY -31.2% vs SCHD -16.9%.
Should I hold both FTHY and SCHD?
FTHY and SCHD have a monthly-return correlation of 0.61, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FTHY or SCHD?
FTHY yields 10.78% while SCHD yields 3.00%, so FTHY currently pays the higher dividend yield.
Is SCHD better than FTHY?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. FTHY is less concentrated, with 16.1% 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.