QTEC vs SCHD
QTEC vs SCHD
First Trust NASDAQ-100-Technology Sector Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. QTEC delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | QTEC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.06% | |
| AUM | $4.5B | $103.7B | |
| Dividend Yield | 0.01% | 3.31% | |
| Holdings | 46 | 104 | |
| YTD Return | +36.63% | +24.26% | |
| 1Y Return | +49.56% | +31.38% | |
| 3Y Return (annualized) | +28.96% | +15.08% | |
| 5Y Return (annualized) | +14.12% | +9.72% | |
| Volatility (annualized) | 22.4% | 13.6% | |
| Max Drawdown | -58.9% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2006 | Oct 20, 2011 |
QTEC vs SCHD Performance
First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) 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 QTEC returned +49.56% while SCHD returned +31.38%. Year to date, QTEC is up 36.63% versus a gain of 24.26% for SCHD.
Over three years, QTEC compounded at +28.96% per year against +15.08% for SCHD; over five years the annualized figures are +14.12% and +9.72% respectively. Across the full 15-year window we track, QTEC has the edge at +14.74% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QTEC has been the more volatile fund, with annualized monthly volatility of 22.4% 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 -58.9% for QTEC 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QTEC charges 0.55% per year while SCHD charges 0.06%. On a $10,000 position that is $55 vs $6 annually, a gap of $49 per year that compounds over a long holding period. On income, QTEC currently yields 0.01% against 3.31% for SCHD.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, QTEC or SCHD?
QTEC has an expense ratio of 0.55% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, QTEC or SCHD?
Over the past year QTEC returned +49.56% vs +31.38% for SCHD, so QTEC leads on 1-year performance. Over the longest common window we track (15 years), QTEC annualized +14.74% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, QTEC or SCHD?
QTEC has been the more volatile fund at 22.4% annualized versus 13.6% for SCHD. Worst drawdown: QTEC -58.9% vs SCHD -33.4%.
Should I hold both QTEC and SCHD?
QTEC and SCHD have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QTEC and SCHD?
QTEC and SCHD share 2 common holdings with a 3.9% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, QTEC or SCHD?
QTEC yields 0.01% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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