FXL vs SCHD
First Trust Technology AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FXL delivered stronger 1-year returns. FXL offers more diversification with 111 holdings.
Side-by-Side Comparison
| Metric | FXL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $2.9B | $108.7B | |
| Dividend Yield | 0.00% | 3.13% | |
| Holdings | 111 | 104 | |
| YTD Return | +32.38% | +26.54% | |
| 1Y Return | +40.13% | +30.90% | |
| 3Y Return (annualized) | +26.26% | +16.29% | |
| 5Y Return (annualized) | +12.54% | +9.65% | |
| Volatility (annualized) | 22.1% | 13.6% | |
| Max Drawdown | -61.4% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Oct 20, 2011 |
FXL vs SCHD Performance
First Trust Technology AlphaDEX Fund (FXL) 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 FXL returned +40.13% while SCHD returned +30.90%. Year to date, FXL is up 32.38% versus a gain of 26.54% for SCHD.
Over three years, FXL compounded at +26.26% per year against +16.29% for SCHD; over five years the annualized figures are +12.54% and +9.65% respectively. Across the full 15-year window we track, FXL has the edge at +13.65% annualized vs +11.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXL has been the more volatile fund, with annualized monthly volatility of 22.1% 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 -61.4% for FXL 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXL 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, FXL currently yields 0.00% against 3.13% for SCHD.
Holdings Overlap
FXL and SCHD share 3 holdings out of 207 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXL or SCHD?
FXL 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, FXL or SCHD?
Over the past year FXL returned +40.13% vs +30.90% for SCHD, so FXL leads on 1-year performance. Over the longest common window we track (15 years), FXL annualized +13.65% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FXL or SCHD?
FXL has been the more volatile fund at 22.1% annualized versus 13.6% for SCHD. Worst drawdown: FXL -61.4% vs SCHD -33.4%.
Should I hold both FXL and SCHD?
FXL and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXL and SCHD?
FXL and SCHD share 3 common holdings with a 1.7% weight overlap. Combined, they hold 207 unique securities.
Which pays a higher dividend, FXL or SCHD?
FXL yields 0.00% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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