FWD vs SCHD

Quick Verdict

SCHD has a lower expense ratio. FWD delivered stronger 1-year returns. FWD offers more diversification with 108 holdings.

Lower Fees: SCHDHigher Returns: FWDMore Diversified: FWD

Side-by-Side Comparison

MetricFWDSCHDWinner
Expense Ratio0.65%0.06%
AUM$2.9B$103.7B
Dividend Yield0.08%3.31%
Holdings138104
YTD Return+23.86%+25.62%
1Y Return+43.49%+32.62%
3Y Return (annualized)+34.11%+15.58%
5Y Return (annualized)-+9.63%
Volatility (annualized)24.3%13.6%
Max Drawdown-29.0%-33.4%
Fund FamilyAllianceBernstein L.P.Charles Schwab Asset Management
CategoryEquityEquity
InceptionMar 22, 2023Oct 20, 2011

FWD vs SCHD Performance

AB Disruptors ETF (FWD) is a ETF from AllianceBernstein L.P. and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FWD returned +43.49% while SCHD returned +32.62%. Year to date, FWD is up 23.86% versus a gain of 25.62% for SCHD.

Over three years, FWD compounded at +34.11% per year against +15.58% for SCHD. Across the full 3-year window we track, FWD has the edge at +34.28% annualized vs +11.47%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FWD has been the more volatile fund, with annualized monthly volatility of 24.3% 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 -29.0% for FWD 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FWD charges 0.65% per year while SCHD charges 0.06%. On a $10,000 position that is $65 vs $6 annually, a gap of $59 per year that compounds over a long holding period. On income, FWD currently yields 0.08% against 3.31% for SCHD.

Holdings Overlap

3.2%overlap

FWD and SCHD share 3 holdings out of 205 unique holdings combined, representing a 3.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FWDWeight in SCHDDifference
MRK1.38%4.32%2.94%
UNH1.12%4.54%3.42%
QCOM0.69%2.72%2.03%

Frequently Asked Questions

Which is cheaper, FWD or SCHD?

FWD has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.

Which performed better, FWD or SCHD?

Over the past year FWD returned +43.49% vs +32.62% for SCHD, so FWD leads on 1-year performance. Over the longest common window we track (3 years), FWD annualized +34.28% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, FWD or SCHD?

FWD has been the more volatile fund at 24.3% annualized versus 13.6% for SCHD. Worst drawdown: FWD -29.0% vs SCHD -33.4%.

Should I hold both FWD and SCHD?

FWD and SCHD have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FWD and SCHD?

FWD and SCHD share 3 common holdings with a 3.2% weight overlap. Combined, they hold 205 unique securities.

Which pays a higher dividend, FWD or SCHD?

FWD yields 0.08% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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