FXN vs SCHD
First Trust Energy AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FXN delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | FXN | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.06% | |
| AUM | $372M | $103.7B | |
| Dividend Yield | 1.83% | 3.31% | |
| Holdings | 38 | 104 | |
| YTD Return | +34.47% | +25.33% | |
| 1Y Return | +51.46% | +32.31% | |
| 3Y Return (annualized) | +10.71% | +15.40% | |
| 5Y Return (annualized) | +19.32% | +9.70% | |
| Volatility (annualized) | 34.8% | 13.6% | |
| Max Drawdown | -88.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Oct 20, 2011 |
FXN vs SCHD Performance
First Trust Energy AlphaDEX Fund (FXN) 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 FXN returned +51.46% while SCHD returned +32.31%. Year to date, FXN is up 34.47% versus a gain of 25.33% for SCHD.
Over three years, FXN compounded at +10.71% per year against +15.40% for SCHD; over five years the annualized figures are +19.32% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +1.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXN has been the more volatile fund, with annualized monthly volatility of 34.8% 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 -88.6% for FXN 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXN 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, FXN currently yields 1.83% against 3.31% for SCHD.
Holdings Overlap
FXN and SCHD share 8 holdings out of 131 unique holdings combined, representing a 13.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FXN or SCHD?
FXN 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, FXN or SCHD?
Over the past year FXN returned +51.46% vs +32.31% for SCHD, so FXN leads on 1-year performance. Over the longest common window we track (15 years), FXN annualized +1.32% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, FXN or SCHD?
FXN has been the more volatile fund at 34.8% annualized versus 13.6% for SCHD. Worst drawdown: FXN -88.6% vs SCHD -33.4%.
Should I hold both FXN and SCHD?
FXN and SCHD have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXN and SCHD?
FXN and SCHD share 8 common holdings with a 13.3% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, FXN or SCHD?
FXN yields 1.83% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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