RDVY vs SCHD
First Trust Rising Dividend Achievers ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. RDVY delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | RDVY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.06% | |
| AUM | $24.6B | $103.7B | |
| Dividend Yield | 0.93% | 3.31% | |
| Holdings | 74 | 104 | |
| YTD Return | +19.31% | +24.26% | |
| 1Y Return | +32.62% | +31.38% | |
| 3Y Return (annualized) | +21.13% | +15.08% | |
| 5Y Return (annualized) | +13.28% | +9.72% | |
| Volatility (annualized) | 17.8% | 13.6% | |
| Max Drawdown | -40.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jan 6, 2014 | Oct 20, 2011 |
RDVY vs SCHD Performance
First Trust Rising Dividend Achievers ETF (RDVY) 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 RDVY returned +32.62% while SCHD returned +31.38%. Year to date, RDVY is up 19.31% versus a gain of 24.26% for SCHD.
Over three years, RDVY compounded at +21.13% per year against +15.08% for SCHD; over five years the annualized figures are +13.28% and +9.72% respectively. Across the full 13-year window we track, RDVY has the edge at +12.76% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RDVY has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -40.6% for RDVY 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RDVY charges 0.47% per year while SCHD charges 0.06%. On a $10,000 position that is $47 vs $6 annually, a gap of $41 per year that compounds over a long holding period. On income, RDVY currently yields 0.93% against 3.31% for SCHD.
Holdings Overlap
RDVY and SCHD share 7 holdings out of 164 unique holdings combined, representing a 6.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RDVY or SCHD?
RDVY has an expense ratio of 0.47% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, RDVY or SCHD?
Over the past year RDVY returned +32.62% vs +31.38% for SCHD, so RDVY leads on 1-year performance. Over the longest common window we track (13 years), RDVY annualized +12.76% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, RDVY or SCHD?
RDVY has been the more volatile fund at 17.8% annualized versus 13.6% for SCHD. Worst drawdown: RDVY -40.6% vs SCHD -33.4%.
Should I hold both RDVY and SCHD?
RDVY and SCHD have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RDVY and SCHD?
RDVY and SCHD share 7 common holdings with a 6.0% weight overlap. Combined, they hold 164 unique securities.
Which pays a higher dividend, RDVY or SCHD?
RDVY yields 0.93% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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