FXG vs SCHD
First Trust Consumer Staples AlphaDEX Fund 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 | FXG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.06% | |
| AUM | $231M | $103.7B | |
| Dividend Yield | 2.88% | 3.31% | |
| Holdings | 41 | 104 | |
| YTD Return | +8.26% | +26.21% | |
| 1Y Return | +3.05% | +29.99% | |
| 3Y Return (annualized) | +2.61% | +15.73% | |
| 5Y Return (annualized) | +4.30% | +9.67% | |
| Volatility (annualized) | 14.7% | 13.6% | |
| Max Drawdown | -40.0% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Oct 20, 2011 |
FXG vs SCHD Performance
First Trust Consumer Staples AlphaDEX Fund (FXG) 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 FXG returned +3.05% while SCHD returned +29.99%. Year to date, FXG is up 8.26% versus a gain of 26.21% for SCHD.
Over three years, FXG compounded at +2.61% per year against +15.73% for SCHD; over five years the annualized figures are +4.30% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +6.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXG has been the more volatile fund, with annualized monthly volatility of 14.7% 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 -40.0% for FXG 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXG charges 0.63% per year while SCHD charges 0.06%. On a $10,000 position that is $63 vs $6 annually, a gap of $57 per year that compounds over a long holding period. On income, FXG currently yields 2.88% against 3.31% for SCHD.
Holdings Overlap
FXG and SCHD share 7 holdings out of 133 unique holdings combined, representing a 8.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXG or SCHD?
FXG has an expense ratio of 0.63% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, FXG or SCHD?
Over the past year FXG returned +3.05% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FXG annualized +6.95% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, FXG or SCHD?
FXG has been the more volatile fund at 14.7% annualized versus 13.6% for SCHD. Worst drawdown: FXG -40.0% vs SCHD -33.4%.
Should I hold both FXG and SCHD?
FXG and SCHD have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXG and SCHD?
FXG and SCHD share 7 common holdings with a 8.3% weight overlap. Combined, they hold 133 unique securities.
Which pays a higher dividend, FXG or SCHD?
FXG yields 2.88% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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