FXO vs SCHD
First Trust Financials AlphaDEX Fund vs Schwab US Dividend Equity ETF
Which is better, FXO or SCHD?
Mid Cap Value against Large Cap Value.
SCHD has a lower expense ratio. FXO led over 3Y, 5Y and the full window, SCHD over 1Y. FXO is less concentrated, with 18.1% of the fund in its ten largest positions against 41.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FXO | SCHD |
|---|---|---|
| Expense Ratio | 0.60% | 0.06%Best |
| AUM | $1.1B | $112.2B |
| Dividend Yield | 1.99% | 3.13% |
| Holdings | 210 | 103 |
| YTD Return | +11.71% | +28.59%Best |
| 1Y Return | +15.99% | +31.77%Best |
| 3Y Return (annualized) | +22.13%Best | +16.70% |
| 5Y Return (annualized) | +10.78%Best | +10.09% |
| Volatility (annualized) | 18.8% | 13.6%Best |
| Max Drawdown | -48.5% | -33.4%Best |
| $10,000 over 5 years | $16,684Best | $16,171 |
| Top 10 Weight | 18.1%Best | 41.5% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Value |
| Inception | May 8, 2007 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 3, 2026 (14.9 years).
FXO vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
FXO vs SCHD Performance
First Trust Financials AlphaDEX Fund (FXO) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FXO returned +15.99% while SCHD returned +31.77%. Year to date, FXO is up 11.71% versus a gain of 28.59% for SCHD.
Over three years, FXO compounded at +22.13% per year against +16.70% for SCHD; over five years the annualized figures are +10.78% and +10.09% respectively. Across the full 15-year window we track, FXO has the edge at +12.82% annualized vs +11.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXO has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -48.5% for FXO and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXO 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, FXO currently yields 1.99% against 3.13% for SCHD.
Holdings Overlap
11.2% of FXO's money is in holdings SCHD also owns. 4.1% of SCHD's money is in holdings FXO also owns.
FXO and SCHD share little of their money.
11 positions in common, counted across the 104 positions we hold weights for in FXO and 100 in SCHD, against full books of 210 and 103.
What only one of them owns
Our book lists 88 positions for SCHD that do not appear in our book for FXO (95.8% of the fund), and 89 for FXO that do not appear in SCHD (83.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FXO | Weight in SCHD | Difference |
|---|---|---|---|
| TROWT Rowe Price Grp | 1.57% | 0.61% | 0.96% |
| CINFCincinnati Financial Corp. | 1.49% | 0.69% | 0.80% |
| BRBroadridge Financial Solutions, Inc. | 1.41% | 0.48% | 0.93% |
| RFEurazeo | 0.93% | 0.67% | 0.26% |
| ORIOld Republic International Corp | 1.26% | 0.24% | 1.02% |
| CNACna Financial Corp | 1.27% | 0.03% | 1.24% |
| OZKBank Ozk | 1.17% | 0.13% | 1.04% |
| COLBColumbia Banking System Inc Common Stock | 0.87% | 0.23% | 0.64% |
| FNFFidelity Nationa | 0.64% | 0.32% | 0.32% |
| EWBCEast West Bancorp, Inc. | 0.30% | 0.45% | 0.15% |
You are not choosing between two funds in isolation.
Whichever of FXO and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FXO or SCHD?
FXO has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option, by $54 a year on a $10,000 investment.
Which performed better, FXO or SCHD?
Over the past year FXO returned +15.99% vs +31.77% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FXO annualized +12.82% vs +11.59% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FXO or SCHD?
FXO has been the more volatile fund at 18.8% annualized versus 13.6% for SCHD. Worst drawdown: FXO -48.5% vs SCHD -33.4%.
Should I hold both FXO and SCHD?
FXO and SCHD have a monthly-return correlation of 0.81, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FXO and SCHD?
11.2% of FXO's money is in holdings SCHD also owns. 4.1% of SCHD's is in holdings FXO also owns. They hold 11 positions in common, counted across the 104 positions we hold weights for in FXO and 100 in SCHD.
Which pays a higher dividend, FXO or SCHD?
FXO yields 1.99% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FXO?
SCHD has a lower expense ratio. FXO led over 3Y, 5Y and the full window, SCHD over 1Y. FXO is less concentrated, with 18.1% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.