FTXO vs SCHD
First Trust Nasdaq Bank 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 104 holdings.
Side-by-Side Comparison
| Metric | FTXO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $321M | $108.7B | |
| Dividend Yield | 1.72% | 3.13% | |
| Holdings | 51 | 104 | |
| YTD Return | +15.53% | +26.54% | |
| 1Y Return | +29.78% | +30.90% | |
| 3Y Return (annualized) | +28.86% | +16.29% | |
| 5Y Return (annualized) | +9.40% | +9.65% | |
| Volatility (annualized) | 27.1% | 13.6% | |
| Max Drawdown | -57.8% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Oct 20, 2011 |
FTXO vs SCHD Performance
First Trust Nasdaq Bank ETF (FTXO) 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 FTXO returned +29.78% while SCHD returned +30.90%. Year to date, FTXO is up 15.53% versus a gain of 26.54% for SCHD.
Over three years, FTXO compounded at +28.86% per year against +16.29% for SCHD; over five years the annualized figures are +9.40% and +9.65% respectively. Across the full 10-year window we track, SCHD has the edge at +11.51% annualized vs +9.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTXO has been the more volatile fund, with annualized monthly volatility of 27.1% compared with 13.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.72. 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
FTXO and SCHD share 4 holdings out of 146 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $54 per year of difference.
Which performed better, FTXO or SCHD?
Over the past year FTXO returned +29.78% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), FTXO annualized +9.48% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTXO or SCHD?
FTXO has been the more volatile fund at 27.1% annualized versus 13.6% 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 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTXO and SCHD?
FTXO and SCHD share 4 common holdings with a 2.5% weight overlap. Combined, they hold 146 unique securities.
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.
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