FXE vs SCHD
Invesco CurrencyShares Euro Currency Trust 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 | FXE | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.06% | |
| AUM | $336M | $103.7B | |
| Dividend Yield | 0.74% | 3.31% | |
| Holdings | 2 | 104 | |
| YTD Return | -0.94% | +24.26% | |
| 1Y Return | -0.10% | +31.38% | |
| 3Y Return (annualized) | +3.29% | +15.08% | |
| 5Y Return (annualized) | +0.50% | +9.72% | |
| Volatility (annualized) | 9.1% | 13.6% | |
| Max Drawdown | -44.7% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Dec 9, 2005 | Oct 20, 2011 |
FXE vs SCHD Performance
Invesco CurrencyShares Euro Currency Trust (FXE) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FXE returned -0.10% while SCHD returned +31.38%. Year to date, FXE is down 0.94% versus a gain of 24.26% for SCHD.
Over three years, FXE compounded at +3.29% per year against +15.08% for SCHD; over five years the annualized figures are +0.50% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.30%. 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 9.1% for FXE. 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 -44.7% for FXE 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXE charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, FXE currently yields 0.74% against 3.31% for SCHD.
Frequently Asked Questions
Which is cheaper, FXE or SCHD?
FXE has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, FXE or SCHD?
Over the past year FXE returned -0.10% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FXE annualized -0.30% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FXE or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 9.1% for FXE. Worst drawdown: FXE -44.7% vs SCHD -33.4%.
Should I hold both FXE and SCHD?
FXE and SCHD have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, FXE or SCHD?
FXE yields 0.74% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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