FXO vs SCHD
First Trust Financials AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FXO offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | FXO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $1.1B | $103.7B | |
| Dividend Yield | 2.21% | 3.31% | |
| Holdings | 106 | 104 | |
| YTD Return | +10.44% | +25.33% | |
| 1Y Return | +19.42% | +32.31% | |
| 3Y Return (annualized) | +20.42% | +15.40% | |
| 5Y Return (annualized) | +10.69% | +9.70% | |
| Volatility (annualized) | 21.4% | 13.6% | |
| Max Drawdown | -72.2% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Oct 20, 2011 |
FXO vs SCHD Performance
First Trust Financials AlphaDEX Fund (FXO) 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 FXO returned +19.42% while SCHD returned +32.31%. Year to date, FXO is up 10.44% versus a gain of 25.33% for SCHD.
Over three years, FXO compounded at +20.42% per year against +15.40% for SCHD; over five years the annualized figures are +10.69% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +7.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXO has been the more volatile fund, with annualized monthly volatility of 21.4% 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 -72.2% for FXO 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 0.81. 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 2.21% against 3.31% for SCHD.
Holdings Overlap
FXO and SCHD share 11 holdings out of 193 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $54 per year of difference.
Which performed better, FXO or SCHD?
Over the past year FXO returned +19.42% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FXO annualized +7.13% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, FXO or SCHD?
FXO has been the more volatile fund at 21.4% annualized versus 13.6% for SCHD. Worst drawdown: FXO -72.2% vs SCHD -33.4%.
Should I hold both FXO and SCHD?
FXO and SCHD have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXO and SCHD?
FXO and SCHD share 11 common holdings with a 4.0% weight overlap. Combined, they hold 193 unique securities.
Which pays a higher dividend, FXO or SCHD?
FXO yields 2.21% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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