CAAA vs SCHD
CAAA vs SCHD
First Trust AAA CMBS ETF vs Schwab US Dividend Equity ETF
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 | CAAA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.06% | |
| AUM | $35M | $103.7B | |
| Dividend Yield | 5.29% | 3.31% | |
| Holdings | 105 | 104 | |
| YTD Return | +1.21% | +23.31% | |
| 1Y Return | +3.24% | +30.42% | |
| 3Y Return (annualized) | - | +14.66% | |
| 5Y Return (annualized) | - | +9.59% | |
| Volatility (annualized) | 3.0% | 13.6% | |
| Max Drawdown | -2.2% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 27, 2024 | Oct 20, 2011 |
CAAA vs SCHD Performance
First Trust AAA CMBS ETF (CAAA) 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 CAAA returned +3.24% while SCHD returned +30.42%. Year to date, CAAA is up 1.21% versus a gain of 23.31% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.0% for CAAA. 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 -2.2% for CAAA 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAAA charges 0.30% per year while SCHD charges 0.06%. On a $10,000 position that is $30 vs $6 annually, a gap of $24 per year that compounds over a long holding period. On income, CAAA currently yields 5.29% against 3.31% for SCHD.
Holdings Overlap
CAAA and SCHD share 0 holdings out of 148 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, CAAA or SCHD?
CAAA has an expense ratio of 0.30% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, CAAA or SCHD?
Over the past year CAAA returned +3.24% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), CAAA annualized +5.49% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, CAAA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.0% for CAAA. Worst drawdown: CAAA -2.2% vs SCHD -33.4%.
Should I hold both CAAA and SCHD?
CAAA and SCHD 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 CAAA and SCHD?
CAAA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 148 unique securities.
Which pays a higher dividend, CAAA or SCHD?
CAAA yields 5.29% while SCHD yields 3.31%, so CAAA currently pays the higher dividend yield.
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