FTSD vs SCHD
FTSD vs SCHD
Franklin Short Duration US Government ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | FTSD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.06% | |
| AUM | $302M | $103.7B | |
| Dividend Yield | 4.54% | 3.31% | |
| Holdings | 342 | 104 | |
| YTD Return | +1.05% | +24.26% | |
| 1Y Return | +3.41% | +31.38% | |
| 3Y Return (annualized) | +4.82% | +15.08% | |
| 5Y Return (annualized) | +2.56% | +9.72% | |
| Volatility (annualized) | 1.3% | 13.6% | |
| Max Drawdown | -9.8% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 4, 2013 | Oct 20, 2011 |
FTSD vs SCHD Performance
Franklin Short Duration US Government ETF (FTSD) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FTSD returned +3.41% while SCHD returned +31.38%. Year to date, FTSD is up 1.05% versus a gain of 24.26% for SCHD.
Over three years, FTSD compounded at +4.82% per year against +15.08% for SCHD; over five years the annualized figures are +2.56% and +9.72% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +0.60%. 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 1.3% for FTSD. 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 -9.8% for FTSD 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSD charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, FTSD currently yields 4.54% against 3.31% for SCHD.
Holdings Overlap
FTSD and SCHD share 0 holdings out of 139 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, FTSD or SCHD?
FTSD has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, FTSD or SCHD?
Over the past year FTSD returned +3.41% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FTSD annualized +0.60% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTSD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 1.3% for FTSD. Worst drawdown: FTSD -9.8% vs SCHD -33.4%.
Should I hold both FTSD and SCHD?
FTSD and SCHD have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSD and SCHD?
FTSD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, FTSD or SCHD?
FTSD yields 4.54% while SCHD yields 3.31%, so FTSD currently pays the higher dividend yield.
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