NXTG vs SCHD
First Trust Indxx NextG ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. NXTG delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | NXTG | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.06% | |
| AUM | $539M | $103.7B | |
| Dividend Yield | 1.15% | 3.31% | |
| Holdings | 108 | 104 | |
| YTD Return | +39.88% | +25.62% | |
| 1Y Return | +57.02% | +32.62% | |
| 3Y Return (annualized) | +32.07% | +15.58% | |
| 5Y Return (annualized) | +16.58% | +9.63% | |
| Volatility (annualized) | 17.3% | 13.6% | |
| Max Drawdown | -33.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 17, 2011 | Oct 20, 2011 |
NXTG vs SCHD Performance
First Trust Indxx NextG ETF (NXTG) 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 NXTG returned +57.02% while SCHD returned +32.62%. Year to date, NXTG is up 39.88% versus a gain of 25.62% for SCHD.
Over three years, NXTG compounded at +32.07% per year against +15.58% for SCHD; over five years the annualized figures are +16.58% and +9.63% respectively. Across the full 15-year window we track, NXTG has the edge at +11.98% annualized vs +11.47%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NXTG has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -33.6% for NXTG 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NXTG charges 0.70% per year while SCHD charges 0.06%. On a $10,000 position that is $70 vs $6 annually, a gap of $64 per year that compounds over a long holding period. On income, NXTG currently yields 1.15% against 3.31% for SCHD.
Holdings Overlap
NXTG and SCHD share 3 holdings out of 196 unique holdings combined, representing a 2.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NXTG or SCHD?
NXTG has an expense ratio of 0.70% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, NXTG or SCHD?
Over the past year NXTG returned +57.02% vs +32.62% for SCHD, so NXTG leads on 1-year performance. Over the longest common window we track (15 years), NXTG annualized +11.98% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, NXTG or SCHD?
NXTG has been the more volatile fund at 17.3% annualized versus 13.6% for SCHD. Worst drawdown: NXTG -33.6% vs SCHD -33.4%.
Should I hold both NXTG and SCHD?
NXTG and SCHD have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXTG and SCHD?
NXTG and SCHD share 3 common holdings with a 2.0% weight overlap. Combined, they hold 196 unique securities.
Which pays a higher dividend, NXTG or SCHD?
NXTG yields 1.15% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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