LEGR vs SCHD

LEGR vs SCHD

Which is better, LEGR or SCHD?

Multi Alternative against Large Cap Value.

SCHD has a lower expense ratio. LEGR led over 3Y, 5Y and the full window, SCHD over 1Y. LEGR is less concentrated, with 19.4% of the fund in its ten largest positions against 41.8%.

Lower Fees: SCHDHigher Returns: splitLess Concentrated: LEGR

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

MetricLEGRSCHD
Expense Ratio0.65%0.06%Best
AUM$130M$112.1B
Dividend Yield1.75%3.00%
Holdings228103
YTD Return+11.01%+23.46%Best
1Y Return+19.58%+27.20%Best
3Y Return (annualized)+22.90%Best+15.41%
5Y Return (annualized)+12.33%Best+10.16%
Volatility (annualized)16.9%16.2%Best
Max Drawdown-36.1%-33.4%Best
$10,000 over 5 years$17,885Best$16,223
Top 10 Weight19.4%Best41.8%
Fund FamilyFirst Trust Portfolios (US)Charles Schwab Asset Management
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Value
InceptionJan 25, 2018Oct 20, 2011

Volatility and max drawdown are measured over the window both funds cover: Jan 25, 2018 to Sep 18, 2026 (8.6 years).

LEGR 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 8.6 years both funds cover.

LEGR vs SCHD Performance

First Trust Indxx Innovative Transaction & Process ETF (LEGR) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year LEGR returned +19.58% while SCHD returned +27.20%. Year to date, LEGR is up 11.01% versus a gain of 23.46% for SCHD.

Over three years, LEGR compounded at +22.90% per year against +15.41% for SCHD; over five years the annualized figures are +12.33% and +10.16% respectively. Across the full 9-year window we track, LEGR has the edge at +11.20% annualized vs +10.02%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LEGR has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 16.2% 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 -36.1% for LEGR and -33.4% 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

LEGR charges 0.65% per year while SCHD charges 0.06%. On a $10,000 position that is $65 vs $6 annually, a gap of $59 per year that compounds over a long holding period. On income, LEGR currently yields 1.75% against 3.00% for SCHD.

Holdings Overlap

LEGR already in SCHD3.8%
SCHD already in LEGR14.8%

3.8% of LEGR's money is in holdings SCHD also owns. 14.8% of SCHD's money is in holdings LEGR also owns.

SCHD and LEGR share little of their money.

5 positions in common, counted across the 104 positions we hold weights for in LEGR and 100 in SCHD, against full books of 228 and 103.

What only one of them owns

Our book lists 94 positions for SCHD that do not appear in our book for LEGR (85.1% of the fund), and 41 for LEGR that do not appear in SCHD (43.5%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in LEGRWeight in SCHDDifference
VZVerizon Communic0.67%3.97%3.30%
HDHome Depot Inc/The0.65%3.88%3.23%
ACNAccenture Plc1.16%2.84%1.68%
LMTLockheed Martin Corp0.58%2.78%2.20%
FFord Motor Credit0.78%1.33%0.55%

You are not choosing between two funds in isolation.

Whichever of LEGR and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

LEGRSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, LEGR or SCHD?

LEGR has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option, by $59 a year on a $10,000 investment.

Which performed better, LEGR or SCHD?

Over the past year LEGR returned +19.58% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), LEGR annualized +11.20% vs +10.02% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LEGR or SCHD?

LEGR has been the more volatile fund at 16.9% annualized versus 16.2% for SCHD. Worst drawdown: LEGR -36.1% vs SCHD -33.4%.

Should I hold both LEGR and SCHD?

LEGR and SCHD have a monthly-return correlation of 0.81, 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 LEGR and SCHD?

14.8% of SCHD's money is in holdings LEGR also owns. 14.8% of SCHD's is in holdings LEGR also owns. They hold 5 positions in common, counted across the 104 positions we hold weights for in LEGR and 100 in SCHD.

Which pays a higher dividend, LEGR or SCHD?

LEGR yields 1.75% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than LEGR?

SCHD has a lower expense ratio. LEGR led over 3Y, 5Y and the full window, SCHD over 1Y. LEGR is less concentrated, with 19.4% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.