LALT vs SCHD
First Trust Multi-Strategy Alternative 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 100 holdings.
Side-by-Side Comparison
| Metric | LALT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.06% | |
| AUM | $294M | $103.7B | |
| Dividend Yield | 3.68% | 3.31% | |
| Holdings | 9 | 104 | |
| YTD Return | +9.04% | +25.62% | |
| 1Y Return | +16.35% | +32.62% | |
| 3Y Return (annualized) | +9.70% | +15.58% | |
| 5Y Return (annualized) | - | +9.63% | |
| Volatility (annualized) | 4.7% | 13.6% | |
| Max Drawdown | -7.0% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Jan 31, 2023 | Oct 20, 2011 |
LALT vs SCHD Performance
First Trust Multi-Strategy Alternative ETF (LALT) 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 LALT returned +16.35% while SCHD returned +32.62%. Year to date, LALT is up 9.04% versus a gain of 25.62% for SCHD.
Over three years, LALT compounded at +9.70% per year against +15.58% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.47% annualized vs +8.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.7% for LALT. 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 -7.0% for LALT 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LALT charges 1.18% per year while SCHD charges 0.06%. On a $10,000 position that is $118 vs $6 annually, a gap of $112 per year that compounds over a long holding period. On income, LALT currently yields 3.68% against 3.31% for SCHD.
Holdings Overlap
LALT and SCHD share 0 holdings out of 107 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LALT or SCHD?
LALT has an expense ratio of 1.18% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $112 per year of difference.
Which performed better, LALT or SCHD?
Over the past year LALT returned +16.35% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), LALT annualized +8.37% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, LALT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.7% for LALT. Worst drawdown: LALT -7.0% vs SCHD -33.4%.
Should I hold both LALT and SCHD?
LALT and SCHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LALT and SCHD?
LALT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, LALT or SCHD?
LALT yields 3.68% while SCHD yields 3.31%, so LALT currently pays the higher dividend yield.
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