INCM vs SCHD
Franklin Income Focus ETF vs Schwab US Dividend Equity ETF
Which is better, INCM or SCHD?
Allocation/Balanced against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window.
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 | INCM | SCHD |
|---|---|---|
| Expense Ratio | 0.38% | 0.06%Best |
| AUM | $1.8B | $112.1B |
| Dividend Yield | 5.18% | 3.00% |
| Holdings | 381 | 103 |
| YTD Return | +7.63% | +25.07%Best |
| 1Y Return | +10.98% | +27.61%Best |
| 3Y Return (annualized) | +11.39% | +15.74%Best |
| 5Y Return (annualized) | - | +9.89% |
| Volatility (annualized) | 7.2%Best | 13.3% |
| Max Drawdown | -7.8%Best | -16.1% |
| $10,000 over 3.3 years | $13,907 | $16,135Best |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Value |
| Inception | Jun 6, 2023 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.3 years row, are measured over the window both funds cover: Jun 8, 2023 to Sep 11, 2026 (3.3 years).
INCM 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 3.3 years both funds cover.
INCM vs SCHD Performance
Franklin Income Focus ETF (INCM) is an ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year INCM returned +10.98% while SCHD returned +27.61%. Year to date, INCM is up 7.63% versus a gain of 25.07% for SCHD.
Over three years, INCM compounded at +11.39% per year against +15.74% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.3% compared with 7.2% for INCM. 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 -7.8% for INCM and -16.1% 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
INCM charges 0.38% per year while SCHD charges 0.06%. On a $10,000 position that is $38 vs $6 annually, a gap of $32 per year that compounds over a long holding period. On income, INCM currently yields 5.18% against 3.00% for SCHD.
Holdings Overlap
At least 46.5% of SCHD's money is in holdings INCM also owns.
Stated as a floor: for INCM, our book for it covers 37.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
15 positions in common, counted across the 62 positions we hold weights for in INCM and 100 in SCHD, against full books of 381 and 103.
Top Shared Holdings
| Stock | Weight in INCM | Weight in SCHD | Difference |
|---|---|---|---|
| PGProcter & Gamble Company | 1.89% | 3.83% | 1.94% |
| VZVerizon Communications, Inc. | 1.61% | 3.97% | 2.36% |
| CVXChevron Corp. | 1.27% | 4.02% | 2.75% |
| KOCoca Cola Co. | 0.95% | 4.17% | 3.22% |
| PEPPepsico Inc. | 1.20% | 3.64% | 2.44% |
| HDHome Depot Inc/The | 0.85% | 3.88% | 3.03% |
| ABTAbbott Laboratories | 0.00% | 4.69% | 4.69% |
| COPConocophillips Co | 0.52% | 3.94% | 3.42% |
| TXNTexas Instruments, Inc | 0.53% | 3.13% | 2.60% |
| LMTLockheed Martin Corp | 0.61% | 2.78% | 2.17% |
46.5% of SCHD is already inside INCM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, INCM or SCHD?
INCM has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, INCM or SCHD?
Over the past year INCM returned +10.98% vs +27.61% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, INCM or SCHD?
SCHD has been the more volatile fund at 13.3% annualized versus 7.2% for INCM. Worst drawdown: INCM -7.8% vs SCHD -16.1%.
Should I hold both INCM and SCHD?
INCM and SCHD have a monthly-return correlation of 0.87, 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 INCM and SCHD?
At least 46.5% of SCHD's money is in holdings INCM also owns. Our book for INCM is partial, so the real figure is this or higher. They hold 15 positions in common, counted across the 62 positions we hold weights for in INCM and 100 in SCHD.
Which pays a higher dividend, INCM or SCHD?
INCM yields 5.18% while SCHD yields 3.00%, so INCM currently pays the higher dividend yield.
Is SCHD better than INCM?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.