FVD vs SCHD
First Trust Value Line Dividend Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FVD offers more diversification with 253 holdings.
Side-by-Side Comparison
| Metric | FVD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.62% | 0.06% | |
| AUM | $8.3B | $108.7B | |
| Dividend Yield | 2.23% | 3.13% | |
| Holdings | 253 | 104 | |
| YTD Return | +11.52% | +26.54% | |
| 1Y Return | +13.30% | +30.90% | |
| 3Y Return (annualized) | +11.60% | +16.29% | |
| 5Y Return (annualized) | +6.49% | +9.65% | |
| Volatility (annualized) | 13.4% | 13.6% | |
| Max Drawdown | -54.1% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 19, 2003 | Oct 20, 2011 |
FVD vs SCHD Performance
First Trust Value Line Dividend Index Fund (FVD) 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 FVD returned +13.30% while SCHD returned +30.90%. Year to date, FVD is up 11.52% versus a gain of 26.54% for SCHD.
Over three years, FVD compounded at +11.60% per year against +16.29% for SCHD; over five years the annualized figures are +6.49% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +7.11%. 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 13.4% for FVD. 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 -54.1% for FVD 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FVD charges 0.62% per year while SCHD charges 0.06%. On a $10,000 position that is $62 vs $6 annually, a gap of $56 per year that compounds over a long holding period. On income, FVD currently yields 2.23% against 3.13% for SCHD.
Holdings Overlap
FVD and SCHD share 29 holdings out of 321 unique holdings combined, representing a 10.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FVD or SCHD?
FVD has an expense ratio of 0.62% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, FVD or SCHD?
Over the past year FVD returned +13.30% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FVD annualized +7.11% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FVD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.4% for FVD. Worst drawdown: FVD -54.1% vs SCHD -33.4%.
Should I hold both FVD and SCHD?
FVD and SCHD have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FVD and SCHD?
FVD and SCHD share 29 common holdings with a 10.2% weight overlap. Combined, they hold 321 unique securities.
Which pays a higher dividend, FVD or SCHD?
FVD yields 2.23% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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