RFEM vs SCHD
First Trust RiverFront Dynamic Emerging Markets ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. RFEM delivered stronger 1-year returns. RFEM offers more diversification with 106 holdings.
Side-by-Side Comparison
| Metric | RFEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.06% | |
| AUM | $78M | $103.7B | |
| Dividend Yield | 1.70% | 3.31% | |
| Holdings | 115 | 104 | |
| YTD Return | +21.71% | +25.58% | |
| 1Y Return | +36.18% | +31.06% | |
| 3Y Return (annualized) | +25.31% | +15.55% | |
| 5Y Return (annualized) | +10.52% | +9.61% | |
| Volatility (annualized) | 17.1% | 13.6% | |
| Max Drawdown | -45.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 14, 2016 | Oct 20, 2011 |
RFEM vs SCHD Performance
First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) 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 RFEM returned +36.18% while SCHD returned +31.06%. Year to date, RFEM is up 21.71% versus a gain of 25.58% for SCHD.
Over three years, RFEM compounded at +25.31% per year against +15.55% for SCHD; over five years the annualized figures are +10.52% and +9.61% respectively. Across the full 10-year window we track, SCHD has the edge at +11.46% annualized vs +8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RFEM has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -45.6% for RFEM 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
RFEM charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, RFEM currently yields 1.70% against 3.31% for SCHD.
Holdings Overlap
RFEM and SCHD share 0 holdings out of 206 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, RFEM or SCHD?
RFEM has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, RFEM or SCHD?
Over the past year RFEM returned +36.18% vs +31.06% for SCHD, so RFEM leads on 1-year performance. Over the longest common window we track (10 years), RFEM annualized +8.87% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, RFEM or SCHD?
RFEM has been the more volatile fund at 17.1% annualized versus 13.6% for SCHD. Worst drawdown: RFEM -45.6% vs SCHD -33.4%.
Should I hold both RFEM and SCHD?
RFEM 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 RFEM and SCHD?
RFEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 206 unique securities.
Which pays a higher dividend, RFEM or SCHD?
RFEM yields 1.70% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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