FYT vs SCHD
First Trust Small Cap Value AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FYT delivered stronger 1-year returns. FYT offers more diversification with 263 holdings.
Side-by-Side Comparison
| Metric | FYT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.06% | |
| AUM | $202M | $108.7B | |
| Dividend Yield | 1.43% | 3.13% | |
| Holdings | 263 | 104 | |
| YTD Return | +29.60% | +26.54% | |
| 1Y Return | +36.53% | +30.90% | |
| 3Y Return (annualized) | +16.04% | +16.29% | |
| 5Y Return (annualized) | +9.28% | +9.65% | |
| Volatility (annualized) | 22.4% | 13.6% | |
| Max Drawdown | -51.7% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2011 | Oct 20, 2011 |
FYT vs SCHD Performance
First Trust Small Cap Value AlphaDEX Fund (FYT) 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 FYT returned +36.53% while SCHD returned +30.90%. Year to date, FYT is up 29.60% versus a gain of 26.54% for SCHD.
Over three years, FYT compounded at +16.04% per year against +16.29% for SCHD; over five years the annualized figures are +9.28% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +9.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FYT has been the more volatile fund, with annualized monthly volatility of 22.4% 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 -51.7% for FYT 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FYT charges 0.70% per year while SCHD charges 0.06%. On a $10,000 position that is $70 vs $6 annually, a gap of $64 per year that compounds over a long holding period. On income, FYT currently yields 1.43% against 3.13% for SCHD.
Holdings Overlap
FYT and SCHD share 15 holdings out of 345 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FYT or SCHD?
FYT has an expense ratio of 0.70% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, FYT or SCHD?
Over the past year FYT returned +36.53% vs +30.90% for SCHD, so FYT leads on 1-year performance. Over the longest common window we track (15 years), FYT annualized +9.35% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FYT or SCHD?
FYT has been the more volatile fund at 22.4% annualized versus 13.6% for SCHD. Worst drawdown: FYT -51.7% vs SCHD -33.4%.
Should I hold both FYT and SCHD?
FYT and SCHD have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FYT and SCHD?
FYT and SCHD share 15 common holdings with a 0.8% weight overlap. Combined, they hold 345 unique securities.
Which pays a higher dividend, FYT or SCHD?
FYT yields 1.43% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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