LQTI vs SCHD
FT Vest Investment Grade & Target Income 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 | LQTI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.06% | |
| AUM | $270M | $108.7B | |
| Dividend Yield | 9.31% | 3.13% | |
| Holdings | 4 | 104 | |
| YTD Return | -0.86% | +28.70% | |
| 1Y Return | +1.59% | +32.27% | |
| 3Y Return (annualized) | - | +17.27% | |
| 5Y Return (annualized) | - | +10.23% | |
| Volatility (annualized) | 3.6% | 13.7% | |
| Max Drawdown | -3.4% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Feb 12, 2025 | Oct 20, 2011 |
LQTI vs SCHD Performance
FT Vest Investment Grade & Target Income ETF (LQTI) 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 LQTI returned +1.59% while SCHD returned +32.27%. Year to date, LQTI is down 0.86% versus a gain of 28.70% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 3.6% for LQTI. 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 -3.4% for LQTI 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LQTI 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, LQTI currently yields 9.31% against 3.13% for SCHD.
Frequently Asked Questions
Which is cheaper, LQTI or SCHD?
LQTI has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, LQTI or SCHD?
Over the past year LQTI returned +1.59% vs +32.27% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), LQTI annualized +3.48% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, LQTI or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 3.6% for LQTI. Worst drawdown: LQTI -3.4% vs SCHD -33.4%.
Should I hold both LQTI and SCHD?
LQTI and SCHD have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, LQTI or SCHD?
LQTI yields 9.31% while SCHD yields 3.13%, so LQTI currently pays the higher dividend yield.
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