INCE vs SCHQ
Franklin Income Equity Focus ETF vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. INCE delivered stronger 1-year returns. SCHQ offers more diversification with 98 holdings.
Side-by-Side Comparison
| Metric | INCE | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.03% | |
| AUM | $132M | $806M | |
| Dividend Yield | 4.82% | 4.73% | |
| Holdings | 82 | 98 | |
| YTD Return | +17.08% | -2.58% | |
| 1Y Return | +24.26% | -1.09% | |
| 3Y Return (annualized) | +16.92% | +0.30% | |
| 5Y Return (annualized) | +10.94% | -6.94% | |
| Volatility (annualized) | 13.8% | 13.5% | |
| Max Drawdown | -34.1% | -46.7% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Sep 20, 2016 | Oct 10, 2019 |
INCE vs SCHQ Performance
Franklin Income Equity Focus ETF (INCE) is a ETF from Franklin Templeton Investments (US) and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year INCE returned +24.26% while SCHQ returned -1.09%. Year to date, INCE is up 17.08% versus a loss of 2.58% for SCHQ.
Over three years, INCE compounded at +16.92% per year against +0.30% for SCHQ; over five years the annualized figures are +10.94% and -6.94% respectively. Across the full 7-year window we track, INCE has the edge at +12.62% annualized vs -4.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
INCE has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 13.5% for SCHQ. 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 -34.1% for INCE and -46.7% for SCHQ. 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INCE charges 0.29% per year while SCHQ charges 0.03%. On a $10,000 position that is $29 vs $3 annually, a gap of $26 per year that compounds over a long holding period. On income, INCE currently yields 4.82% against 4.73% for SCHQ.
Frequently Asked Questions
Which is cheaper, INCE or SCHQ?
INCE has an expense ratio of 0.29% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, INCE or SCHQ?
Over the past year INCE returned +24.26% vs -1.09% for SCHQ, so INCE leads on 1-year performance. Over the longest common window we track (7 years), INCE annualized +12.62% vs -4.40% for SCHQ. Past performance does not guarantee future results.
Which is riskier, INCE or SCHQ?
INCE has been the more volatile fund at 13.8% annualized versus 13.5% for SCHQ. Worst drawdown: INCE -34.1% vs SCHQ -46.7%.
Should I hold both INCE and SCHQ?
INCE and SCHQ have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, INCE or SCHQ?
INCE yields 4.82% while SCHQ yields 4.73%, so INCE currently pays the higher dividend yield.
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