FXZ vs SCHD
First Trust Materials AlphaDEX Fund vs Schwab US Dividend Equity ETF
Which is better, FXZ or SCHD?
Mid Cap Value against Large Cap Value.
SCHD has a lower expense ratio. FXZ led over 1Y and 5Y, SCHD over 3Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 44.1%.
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 | FXZ | SCHD |
|---|---|---|
| Expense Ratio | 0.64% | 0.06%Best |
| AUM | $400M | $112.2B |
| Dividend Yield | 1.42% | 3.13% |
| Holdings | 80 | 103 |
| YTD Return | +30.53%Best | +26.13% |
| 1Y Return | +41.16%Best | +30.01% |
| 3Y Return (annualized) | +12.21% | +16.09%Best |
| 5Y Return (annualized) | +10.40%Best | +9.95% |
| Volatility (annualized) | 21.3% | 13.6%Best |
| Max Drawdown | -50.8% | -33.4%Best |
| $10,000 over 5 years | $16,400Best | $16,069 |
| Top 10 Weight | 44.1% | 41.5%Best |
| 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 8, 2026 (14.9 years).
FXZ 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.
FXZ vs SCHD Performance
First Trust Materials AlphaDEX Fund (FXZ) 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 FXZ returned +41.16% while SCHD returned +30.01%. Year to date, FXZ is up 30.53% versus a gain of 26.13% for SCHD.
Over three years, FXZ compounded at +12.21% per year against +16.09% for SCHD; over five years the annualized figures are +10.40% and +9.95% respectively. Across the full 15-year window we track, SCHD has the edge at +11.43% annualized vs +11.08%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FXZ has been the more volatile fund, with annualized monthly volatility of 21.3% 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 -50.8% for FXZ 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXZ charges 0.64% per year while SCHD charges 0.06%. On a $10,000 position that is $64 vs $6 annually, a gap of $58 per year that compounds over a long holding period. On income, FXZ currently yields 1.42% against 3.13% for SCHD.
Holdings Overlap
1.7% of FXZ's money is in holdings SCHD also owns. 1.5% of SCHD's money is in holdings FXZ also owns.
FXZ and SCHD share little of their money.
1 positions in common, counted across the 39 positions we hold weights for in FXZ and 100 in SCHD, against full books of 80 and 103.
What only one of them owns
Our book lists 97 positions for SCHD that do not appear in our book for FXZ (98.2% of the fund), and 35 for FXZ that do not appear in SCHD (87.0%).
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 FXZ | Weight in SCHD | Difference |
|---|---|---|---|
| FASTFastenal Co. | 1.66% | 1.49% | 0.17% |
You are not choosing between two funds in isolation.
Whichever of FXZ 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, FXZ or SCHD?
FXZ has an expense ratio of 0.64% while SCHD charges 0.06%. SCHD is the cheaper option, by $58 a year on a $10,000 investment.
Which performed better, FXZ or SCHD?
Over the past year FXZ returned +41.16% vs +30.01% for SCHD, so FXZ leads on 1-year performance. Over the longest common window we track (15 years), FXZ annualized +11.08% vs +11.43% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FXZ or SCHD?
FXZ has been the more volatile fund at 21.3% annualized versus 13.6% for SCHD. Worst drawdown: FXZ -50.8% vs SCHD -33.4%.
Should I hold both FXZ and SCHD?
FXZ and SCHD have a monthly-return correlation of 0.82, 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 FXZ and SCHD?
1.7% of FXZ's money is in holdings SCHD also owns. 1.5% of SCHD's is in holdings FXZ also owns. They hold 1 positions in common, counted across the 39 positions we hold weights for in FXZ and 100 in SCHD.
Which pays a higher dividend, FXZ or SCHD?
FXZ yields 1.42% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FXZ?
SCHD has a lower expense ratio. FXZ led over 1Y and 5Y, SCHD over 3Y and the full window. SCHD is less concentrated, with 41.5% of the fund in its ten largest positions against 44.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.