QABA vs SCHD
First Trust NASDAQ ABA Community Bank Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. QABA delivered stronger 1-year returns. QABA offers more diversification with 160 holdings.
Side-by-Side Comparison
| Metric | QABA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.06% | |
| AUM | $92M | $103.7B | |
| Dividend Yield | 2.34% | 3.31% | |
| Holdings | 147 | 104 | |
| YTD Return | +23.32% | +24.26% | |
| 1Y Return | +33.43% | +31.38% | |
| 3Y Return (annualized) | +17.77% | +15.08% | |
| 5Y Return (annualized) | +7.35% | +9.72% | |
| Volatility (annualized) | 22.5% | 13.6% | |
| Max Drawdown | -51.0% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 29, 2009 | Oct 20, 2011 |
QABA vs SCHD Performance
First Trust NASDAQ ABA Community Bank Index Fund (QABA) 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 QABA returned +33.43% while SCHD returned +31.38%. Year to date, QABA is up 23.32% versus a gain of 24.26% for SCHD.
Over three years, QABA compounded at +17.77% per year against +15.08% for SCHD; over five years the annualized figures are +7.35% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +8.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QABA has been the more volatile fund, with annualized monthly volatility of 22.5% 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 -51.0% for QABA 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QABA charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, QABA currently yields 2.34% against 3.31% for SCHD.
Holdings Overlap
QABA and SCHD share 14 holdings out of 246 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QABA or SCHD?
QABA has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, QABA or SCHD?
Over the past year QABA returned +33.43% vs +31.38% for SCHD, so QABA leads on 1-year performance. Over the longest common window we track (15 years), QABA annualized +8.32% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, QABA or SCHD?
QABA has been the more volatile fund at 22.5% annualized versus 13.6% for SCHD. Worst drawdown: QABA -51.0% vs SCHD -33.4%.
Should I hold both QABA and SCHD?
QABA and SCHD have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QABA and SCHD?
QABA and SCHD share 14 common holdings with a 0.7% weight overlap. Combined, they hold 246 unique securities.
Which pays a higher dividend, QABA or SCHD?
QABA yields 2.34% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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