MFLX vs SCHD
First Trust Flexible Municipal High 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 100 holdings.
Side-by-Side Comparison
| Metric | MFLX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.06% | |
| AUM | $21M | $103.7B | |
| Dividend Yield | 4.09% | 3.31% | |
| Holdings | 80 | 104 | |
| YTD Return | +2.28% | +24.26% | |
| 1Y Return | +7.25% | +31.38% | |
| 3Y Return (annualized) | +5.05% | +15.08% | |
| 5Y Return (annualized) | -0.92% | +9.72% | |
| Volatility (annualized) | 8.5% | 13.6% | |
| Max Drawdown | -26.9% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 27, 2016 | Oct 20, 2011 |
MFLX vs SCHD Performance
First Trust Flexible Municipal High Income ETF (MFLX) 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 MFLX returned +7.25% while SCHD returned +31.38%. Year to date, MFLX is up 2.28% versus a gain of 24.26% for SCHD.
Over three years, MFLX compounded at +5.05% per year against +15.08% for SCHD; over five years the annualized figures are -0.92% and +9.72% respectively. Across the full 10-year window we track, SCHD has the edge at +11.39% annualized vs +0.39%. 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 8.5% for MFLX. 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 -26.9% for MFLX 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFLX charges 0.75% per year while SCHD charges 0.06%. On a $10,000 position that is $75 vs $6 annually, a gap of $69 per year that compounds over a long holding period. On income, MFLX currently yields 4.09% against 3.31% for SCHD.
Holdings Overlap
MFLX and SCHD share 0 holdings out of 150 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, MFLX or SCHD?
MFLX has an expense ratio of 0.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, MFLX or SCHD?
Over the past year MFLX returned +7.25% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), MFLX annualized +0.39% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MFLX or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.5% for MFLX. Worst drawdown: MFLX -26.9% vs SCHD -33.4%.
Should I hold both MFLX and SCHD?
MFLX and SCHD have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFLX and SCHD?
MFLX and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, MFLX or SCHD?
MFLX yields 4.09% while SCHD yields 3.31%, so MFLX currently pays the higher dividend yield.
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