FTXO vs SCHD
First Trust Nasdaq Bank ETF vs Schwab US Dividend Equity ETF
Which is better, FTXO or SCHD?
Each has led over a different period.
SCHD has a lower expense ratio. FTXO led over 3Y, SCHD over 1Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 58.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FTXO | SCHD |
|---|---|---|
| Expense Ratio | 0.60% | 0.06%Best |
| AUM | $298M | $112.2B |
| Dividend Yield | 1.72% | 3.13% |
| Holdings | 102 | 103 |
| YTD Return | +12.02% | +28.59%Best |
| 1Y Return | +21.75% | +31.77%Best |
| 3Y Return (annualized) | +28.31%Best | +16.70% |
| 5Y Return (annualized) | +8.83% | +10.09%Best |
| Volatility (annualized) | 27.0% | 15.3%Best |
| Max Drawdown | -57.8% | -33.4%Best |
| $10,000 over 5 years | $15,267 | $16,171Best |
| Top 10 Weight | 58.9% | 41.5%Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Sep 20, 2016 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 7, 2016 to Sep 3, 2026 (9.9 years).
FTXO vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.9 years both funds cover.
FTXO vs SCHD Performance
First Trust Nasdaq Bank ETF (FTXO) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FTXO returned +21.75% while SCHD returned +31.77%. Year to date, FTXO is up 12.02% versus a gain of 28.59% for SCHD.
Over three years, FTXO compounded at +28.31% per year against +16.70% for SCHD; over five years the annualized figures are +8.83% and +10.09% respectively. Across the full 10-year window we track, SCHD has the edge at +11.88% annualized vs +9.08%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTXO has been the more volatile fund, with annualized monthly volatility of 27.0% compared with 15.3% for SCHD. 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 -57.8% for FTXO and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTXO charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, FTXO currently yields 1.72% against 3.13% for SCHD.
Holdings Overlap
8.1% of FTXO's money is in holdings SCHD also owns. 2.5% of SCHD's money is in holdings FTXO also owns.
FTXO and SCHD share little of their money.
4 positions in common, counted across the 50 positions we hold weights for in FTXO and 100 in SCHD, against full books of 102 and 103.
What only one of them owns
Our book lists 95 positions for SCHD that do not appear in our book for FTXO (97.3% of the fund), and 44 for FTXO that do not appear in SCHD (90.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FTXO and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTXO or SCHD?
FTXO has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option, by $54 a year on a $10,000 investment.
Which performed better, FTXO or SCHD?
Over the past year FTXO returned +21.75% vs +31.77% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), FTXO annualized +9.08% vs +11.88% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTXO or SCHD?
FTXO has been the more volatile fund at 27.0% annualized versus 15.3% for SCHD. Worst drawdown: FTXO -57.8% vs SCHD -33.4%.
Should I hold both FTXO and SCHD?
FTXO and SCHD have a monthly-return correlation of 0.71, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FTXO and SCHD?
8.1% of FTXO's money is in holdings SCHD also owns. 2.5% of SCHD's is in holdings FTXO also owns. They hold 4 positions in common, counted across the 50 positions we hold weights for in FTXO and 100 in SCHD.
Which pays a higher dividend, FTXO or SCHD?
FTXO yields 1.72% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FTXO?
SCHD has a lower expense ratio. FTXO led over 3Y, SCHD over 1Y, 5Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 58.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.