SCHD vs TSEP
Schwab US Dividend Equity ETF vs FT Vest Emerging Market Buffer ETF - September
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | TSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.95% | |
| AUM | $103.7B | $16M | |
| Dividend Yield | 3.31% | 0.00% | |
| Holdings | 104 | 5 | |
| YTD Return | +26.21% | +9.99% | |
| 1Y Return | +29.99% | +17.11% | |
| 3Y Return (annualized) | +15.73% | - | |
| 5Y Return (annualized) | +9.67% | - | |
| Volatility (annualized) | 13.6% | 7.8% | |
| Max Drawdown | -33.4% | -9.8% | |
| Fund Family | Charles Schwab Asset Management | First Trust Portfolios (US) | |
| Category | Equity | Alternative | |
| Inception | Oct 20, 2011 | Sep 20, 2024 |
SCHD vs TSEP Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and FT Vest Emerging Market Buffer ETF - September (TSEP) is a ETF from First Trust Portfolios (US). Over the past year SCHD returned +29.99% while TSEP returned +17.11%. Year to date, SCHD is up 26.21% versus a gain of 9.99% for TSEP.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 7.8% for TSEP. 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 -33.4% for SCHD and -9.8% for TSEP. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TSEP charges 0.95%. On a $10,000 position that is $6 vs $95 annually, a gap of $89 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.00% for TSEP.
Holdings Overlap
SCHD and TSEP share 0 holdings out of 101 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, SCHD or TSEP?
SCHD has an expense ratio of 0.06% while TSEP charges 0.95%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, SCHD or TSEP?
Over the past year SCHD returned +29.99% vs +17.11% for TSEP, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.50% vs +16.08% for TSEP. Past performance does not guarantee future results.
Which is riskier, SCHD or TSEP?
SCHD has been the more volatile fund at 13.6% annualized versus 7.8% for TSEP. Worst drawdown: SCHD -33.4% vs TSEP -9.8%.
Should I hold both SCHD and TSEP?
SCHD and TSEP have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TSEP?
SCHD and TSEP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.
Which pays a higher dividend, SCHD or TSEP?
SCHD yields 3.31% while TSEP yields 0.00%, so SCHD currently pays the higher dividend yield.
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