KNG vs SCHD
FT Vest S&P 500 Dividend Aristocrats Target Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. KNG offers more diversification with 139 holdings.
Side-by-Side Comparison
| Metric | KNG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.74% | 0.06% | |
| AUM | $3.5B | $108.7B | |
| Dividend Yield | 8.28% | 3.13% | |
| Holdings | 139 | 104 | |
| YTD Return | +7.15% | +26.50% | |
| 1Y Return | +9.17% | +31.25% | |
| 3Y Return (annualized) | +7.81% | +16.34% | |
| 5Y Return (annualized) | +5.29% | +10.10% | |
| Volatility (annualized) | 15.5% | 13.6% | |
| Max Drawdown | -35.1% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 26, 2018 | Oct 20, 2011 |
KNG vs SCHD Performance
FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) 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 KNG returned +9.17% while SCHD returned +31.25%. Year to date, KNG is up 7.15% versus a gain of 26.50% for SCHD.
Over three years, KNG compounded at +7.81% per year against +16.34% for SCHD; over five years the annualized figures are +5.29% and +10.10% respectively. Across the full 8-year window we track, SCHD has the edge at +11.50% annualized vs +7.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KNG has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -35.1% for KNG 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
KNG charges 0.74% per year while SCHD charges 0.06%. On a $10,000 position that is $74 vs $6 annually, a gap of $68 per year that compounds over a long holding period. On income, KNG currently yields 8.28% against 3.13% for SCHD.
Holdings Overlap
KNG and SCHD share 13 holdings out of 156 unique holdings combined, representing a 15.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KNG or SCHD?
KNG has an expense ratio of 0.74% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, KNG or SCHD?
Over the past year KNG returned +9.17% vs +31.25% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), KNG annualized +7.35% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, KNG or SCHD?
KNG has been the more volatile fund at 15.5% annualized versus 13.6% for SCHD. Worst drawdown: KNG -35.1% vs SCHD -33.4%.
Should I hold both KNG and SCHD?
KNG and SCHD have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between KNG and SCHD?
KNG and SCHD share 13 common holdings with a 15.1% weight overlap. Combined, they hold 156 unique securities.
Which pays a higher dividend, KNG or SCHD?
KNG yields 8.28% while SCHD yields 3.13%, so KNG currently pays the higher dividend yield.
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