FTQI vs SCHD
First Trust Nasdaq BuyWrite Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FTQI offers more diversification with 175 holdings.
Side-by-Side Comparison
| Metric | FTQI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.06% | |
| AUM | $896M | $103.7B | |
| Dividend Yield | 11.00% | 3.31% | |
| Holdings | 183 | 104 | |
| YTD Return | +14.26% | +24.26% | |
| 1Y Return | +22.98% | +31.38% | |
| 3Y Return (annualized) | +17.06% | +15.08% | |
| 5Y Return (annualized) | +12.11% | +9.72% | |
| Volatility (annualized) | 10.0% | 13.6% | |
| Max Drawdown | -20.4% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Jan 6, 2014 | Oct 20, 2011 |
FTQI vs SCHD Performance
First Trust Nasdaq BuyWrite Income ETF (FTQI) 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 FTQI returned +22.98% while SCHD returned +31.38%. Year to date, FTQI is up 14.26% versus a gain of 24.26% for SCHD.
Over three years, FTQI compounded at +17.06% per year against +15.08% for SCHD; over five years the annualized figures are +12.11% and +9.72% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +5.18%. 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 10.0% for FTQI. 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 -20.4% for FTQI 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTQI charges 0.76% per year while SCHD charges 0.06%. On a $10,000 position that is $76 vs $6 annually, a gap of $70 per year that compounds over a long holding period. On income, FTQI currently yields 11.00% against 3.31% for SCHD.
Holdings Overlap
FTQI and SCHD share 7 holdings out of 268 unique holdings combined, representing a 2.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTQI or SCHD?
FTQI has an expense ratio of 0.76% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, FTQI or SCHD?
Over the past year FTQI returned +22.98% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FTQI annualized +5.18% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTQI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 10.0% for FTQI. Worst drawdown: FTQI -20.4% vs SCHD -33.4%.
Should I hold both FTQI and SCHD?
FTQI and SCHD have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTQI and SCHD?
FTQI and SCHD share 7 common holdings with a 2.6% weight overlap. Combined, they hold 268 unique securities.
Which pays a higher dividend, FTQI or SCHD?
FTQI yields 11.00% while SCHD yields 3.31%, so FTQI currently pays the higher dividend yield.
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