FTSL vs SCHD
FTSL vs SCHD
First Trust Senior Loan Fund 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 | FTSL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.06% | |
| AUM | $2.3B | $103.7B | |
| Dividend Yield | 6.48% | 3.31% | |
| Holdings | 292 | 104 | |
| YTD Return | +1.43% | +24.26% | |
| 1Y Return | +3.47% | +31.38% | |
| 3Y Return (annualized) | +6.59% | +15.08% | |
| 5Y Return (annualized) | +5.08% | +9.72% | |
| Volatility (annualized) | 4.9% | 13.6% | |
| Max Drawdown | -26.4% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 1, 2013 | Oct 20, 2011 |
FTSL vs SCHD Performance
First Trust Senior Loan Fund ETF (FTSL) 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 FTSL returned +3.47% while SCHD returned +31.38%. Year to date, FTSL is up 1.43% versus a gain of 24.26% for SCHD.
Over three years, FTSL compounded at +6.59% per year against +15.08% for SCHD; over five years the annualized figures are +5.08% and +9.72% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +1.65%. 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 4.9% for FTSL. 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 -26.4% for FTSL 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSL charges 0.70% per year while SCHD charges 0.06%. On a $10,000 position that is $70 vs $6 annually, a gap of $64 per year that compounds over a long holding period. On income, FTSL currently yields 6.48% against 3.31% for SCHD.
Holdings Overlap
FTSL and SCHD share 0 holdings out of 146 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, FTSL or SCHD?
FTSL has an expense ratio of 0.70% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, FTSL or SCHD?
Over the past year FTSL returned +3.47% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FTSL annualized +1.65% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTSL or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.9% for FTSL. Worst drawdown: FTSL -26.4% vs SCHD -33.4%.
Should I hold both FTSL and SCHD?
FTSL and SCHD have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSL and SCHD?
FTSL and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 146 unique securities.
Which pays a higher dividend, FTSL or SCHD?
FTSL yields 6.48% while SCHD yields 3.31%, so FTSL currently pays the higher dividend yield.
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