RFEU vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricRFEUSCHDWinner
Expense Ratio0.83%0.06%
AUM$8M$103.7B
Dividend Yield4.64%3.31%
Holdings91104
YTD Return+1.15%+25.58%
1Y Return+28.40%+31.06%
3Y Return (annualized)+13.10%+15.55%
5Y Return (annualized)+6.58%+9.61%
Volatility (annualized)16.1%13.6%
Max Drawdown-42.9%-33.4%
Fund FamilyFirst Trust Portfolios (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionApr 14, 2016Oct 20, 2011

RFEU vs SCHD Performance

First Trust RiverFront Dynamic Europe ETF (RFEU) 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 RFEU returned +28.40% while SCHD returned +31.06%. Year to date, RFEU is up 1.15% versus a gain of 25.58% for SCHD.

Over three years, RFEU compounded at +13.10% per year against +15.55% for SCHD; over five years the annualized figures are +6.58% and +9.61% respectively. Across the full 10-year window we track, SCHD has the edge at +11.46% annualized vs +7.60%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFEU has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -42.9% for RFEU 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

RFEU charges 0.83% per year while SCHD charges 0.06%. On a $10,000 position that is $83 vs $6 annually, a gap of $77 per year that compounds over a long holding period. On income, RFEU currently yields 4.64% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

RFEU and SCHD share 0 holdings out of 186 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, RFEU or SCHD?

RFEU has an expense ratio of 0.83% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $77 per year of difference.

Which performed better, RFEU or SCHD?

Over the past year RFEU returned +28.40% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), RFEU annualized +7.60% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, RFEU or SCHD?

RFEU has been the more volatile fund at 16.1% annualized versus 13.6% for SCHD. Worst drawdown: RFEU -42.9% vs SCHD -33.4%.

Should I hold both RFEU and SCHD?

RFEU and SCHD have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RFEU and SCHD?

RFEU and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 186 unique securities.

Which pays a higher dividend, RFEU or SCHD?

RFEU yields 4.64% while SCHD yields 3.31%, so RFEU currently pays the higher dividend yield.

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