FTKI vs SCHQ
First Trust Small Cap BuyWrite Income ETF vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. FTKI delivered stronger 1-year returns. FTKI offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | FTKI | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.03% | |
| AUM | $25M | $806M | |
| Dividend Yield | 12.53% | 4.73% | |
| Holdings | 170 | 98 | |
| YTD Return | +13.43% | -3.15% | |
| 1Y Return | +20.96% | -0.88% | |
| 3Y Return (annualized) | - | +0.10% | |
| 5Y Return (annualized) | - | -6.79% | |
| Volatility (annualized) | 10.3% | 13.5% | |
| Max Drawdown | -15.2% | -46.7% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Feb 26, 2025 | Oct 10, 2019 |
FTKI vs SCHQ Performance
First Trust Small Cap BuyWrite Income ETF (FTKI) 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 FTKI returned +20.96% while SCHQ returned -0.88%. Year to date, FTKI is up 13.43% versus a loss of 3.15% for SCHQ.
Risk: Volatility and Drawdowns
SCHQ has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 10.3% for FTKI. 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 -15.2% for FTKI 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTKI charges 0.85% per year while SCHQ charges 0.03%. On a $10,000 position that is $85 vs $3 annually, a gap of $82 per year that compounds over a long holding period. On income, FTKI currently yields 12.53% against 4.73% for SCHQ.
Frequently Asked Questions
Which is cheaper, FTKI or SCHQ?
FTKI has an expense ratio of 0.85% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, FTKI or SCHQ?
Over the past year FTKI returned +20.96% vs -0.88% for SCHQ, so FTKI leads on 1-year performance. Over the longest common window we track (2 years), FTKI annualized +12.86% vs -4.49% for SCHQ. Past performance does not guarantee future results.
Which is riskier, FTKI or SCHQ?
SCHQ has been the more volatile fund at 13.5% annualized versus 10.3% for FTKI. Worst drawdown: FTKI -15.2% vs SCHQ -46.7%.
Should I hold both FTKI and SCHQ?
FTKI and SCHQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FTKI or SCHQ?
FTKI yields 12.53% while SCHQ yields 4.73%, so FTKI currently pays the higher dividend yield.
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