FAB vs SCHD
FAB vs SCHD
First Trust Multi Cap Value AlphaDEX Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FAB delivered stronger 1-year returns. FAB offers more diversification with 664 holdings.
Side-by-Side Comparison
| Metric | FAB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.66% | 0.06% | |
| AUM | $168M | $103.7B | |
| Dividend Yield | 1.59% | 3.31% | |
| Holdings | 676 | 104 | |
| YTD Return | +19.23% | +23.31% | |
| 1Y Return | +30.92% | +30.42% | |
| 3Y Return (annualized) | +14.28% | +14.66% | |
| 5Y Return (annualized) | +10.43% | +9.59% | |
| Volatility (annualized) | 20.6% | 13.6% | |
| Max Drawdown | -64.3% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Oct 20, 2011 |
FAB vs SCHD Performance
First Trust Multi Cap Value AlphaDEX Fund (FAB) 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 FAB returned +30.92% while SCHD returned +30.42%. Year to date, FAB is up 19.23% versus a gain of 23.31% for SCHD.
Over three years, FAB compounded at +14.28% per year against +14.66% for SCHD; over five years the annualized figures are +10.43% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +7.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAB has been the more volatile fund, with annualized monthly volatility of 20.6% 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 -64.3% for FAB 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAB charges 0.66% per year while SCHD charges 0.06%. On a $10,000 position that is $66 vs $6 annually, a gap of $60 per year that compounds over a long holding period. On income, FAB currently yields 1.59% against 3.31% for SCHD.
Holdings Overlap
FAB and SCHD share 53 holdings out of 711 unique holdings combined, representing a 9.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FAB | Weight in SCHD | Difference |
|---|---|---|---|
| ABT | 0.20% | 4.49% | 4.29% |
| CVX | 0.41% | 3.95% | 3.54% |
| PG | 0.17% | 4.15% | 3.98% |
| HD | Pro | Pro | Pro |
| COP | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| BMY | Pro | Pro | Pro |
| MO | Pro | Pro | Pro |
| CMCSA | Pro | Pro | Pro |
See all 10 holdings FAB shares with SCHD Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FAB or SCHD?
FAB has an expense ratio of 0.66% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, FAB or SCHD?
Over the past year FAB returned +30.92% vs +30.42% for SCHD, so FAB leads on 1-year performance. Over the longest common window we track (15 years), FAB annualized +7.35% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, FAB or SCHD?
FAB has been the more volatile fund at 20.6% annualized versus 13.6% for SCHD. Worst drawdown: FAB -64.3% vs SCHD -33.4%.
Should I hold both FAB and SCHD?
FAB and SCHD have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAB and SCHD?
FAB and SCHD share 53 common holdings with a 9.5% weight overlap. Combined, they hold 711 unique securities.
Which pays a higher dividend, FAB or SCHD?
FAB yields 1.59% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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