FTHY vs SCHD
FTHY vs SCHD
First Trust High Yield Opportunities 2027 Term Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FTHY offers more diversification with 230 holdings.
Side-by-Side Comparison
| Metric | FTHY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.59% | 0.06% | |
| AUM | $662M | $103.7B | |
| Dividend Yield | 10.63% | 3.31% | |
| Holdings | 294 | 104 | |
| YTD Return | +2.21% | +24.26% | |
| 1Y Return | +2.32% | +31.38% | |
| 3Y Return (annualized) | +10.46% | +15.08% | |
| 5Y Return (annualized) | +2.28% | +9.72% | |
| Volatility (annualized) | 11.9% | 13.6% | |
| Max Drawdown | -31.2% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 25, 2020 | Oct 20, 2011 |
FTHY vs SCHD Performance
First Trust High Yield Opportunities 2027 Term Fund (FTHY) 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 FTHY returned +2.32% while SCHD returned +31.38%. Year to date, FTHY is up 2.21% versus a gain of 24.26% for SCHD.
Over three years, FTHY compounded at +10.46% per year against +15.08% for SCHD; over five years the annualized figures are +2.28% and +9.72% respectively. Across the full 6-year window we track, SCHD has the edge at +11.39% annualized vs +2.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% 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 -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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
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 10.63% against 3.31% for SCHD.
Holdings Overlap
FTHY and SCHD share 0 holdings out of 330 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $353 per year of difference.
Which performed better, FTHY or SCHD?
Over the past year FTHY returned +2.32% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), FTHY annualized +2.71% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTHY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.9% for FTHY. Worst drawdown: FTHY -31.2% vs SCHD -33.4%.
Should I hold both FTHY and SCHD?
FTHY and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTHY and SCHD?
FTHY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 330 unique securities.
Which pays a higher dividend, FTHY or SCHD?
FTHY yields 10.63% while SCHD yields 3.31%, so FTHY currently pays the higher dividend yield.
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