KNGZ vs SCHD
First Trust S&P 500 Diversified Dividend Aristocrats ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | KNGZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $67M | $108.7B | |
| Dividend Yield | 2.52% | 3.13% | |
| Holdings | 99 | 104 | |
| YTD Return | +18.99% | +27.67% | |
| 1Y Return | +24.68% | +31.26% | |
| 3Y Return (annualized) | +17.19% | +16.66% | |
| 5Y Return (annualized) | +10.17% | +10.18% | |
| Volatility (annualized) | 17.1% | 13.6% | |
| Max Drawdown | -37.5% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 20, 2017 | Oct 20, 2011 |
KNGZ vs SCHD Performance
First Trust S&P 500 Diversified Dividend Aristocrats ETF (KNGZ) 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 KNGZ returned +24.68% while SCHD returned +31.26%. Year to date, KNGZ is up 18.99% versus a gain of 27.67% for SCHD.
Over three years, KNGZ compounded at +17.19% per year against +16.66% for SCHD; over five years the annualized figures are +10.17% and +10.18% respectively. Across the full 9-year window we track, SCHD has the edge at +11.57% annualized vs +10.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KNGZ has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -37.5% for KNGZ 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
KNGZ charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, KNGZ currently yields 2.52% against 3.13% for SCHD.
Holdings Overlap
KNGZ and SCHD share 27 holdings out of 171 unique holdings combined, representing a 27.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KNGZ or SCHD?
KNGZ has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, KNGZ or SCHD?
Over the past year KNGZ returned +24.68% vs +31.26% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), KNGZ annualized +10.26% vs +11.57% for SCHD. Past performance does not guarantee future results.
Which is riskier, KNGZ or SCHD?
KNGZ has been the more volatile fund at 17.1% annualized versus 13.6% for SCHD. Worst drawdown: KNGZ -37.5% vs SCHD -33.4%.
Should I hold both KNGZ and SCHD?
KNGZ and SCHD have a monthly-return correlation of 0.92, 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 KNGZ and SCHD?
KNGZ and SCHD share 27 common holdings with a 27.2% weight overlap. Combined, they hold 171 unique securities.
Which pays a higher dividend, KNGZ or SCHD?
KNGZ yields 2.52% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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