FAI vs SCHD
FAI vs SCHD
First Trust Bloomberg Artificial Intelligence ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FAI delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | FAI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.06% | |
| AUM | $153M | $103.7B | |
| Dividend Yield | 0.00% | 3.31% | |
| Holdings | 53 | 104 | |
| YTD Return | +31.63% | +24.08% | |
| 1Y Return | +48.02% | +31.88% | |
| 3Y Return (annualized) | - | +14.92% | |
| 5Y Return (annualized) | - | +9.85% | |
| Volatility (annualized) | 31.5% | 13.6% | |
| Max Drawdown | -27.8% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2024 | Oct 20, 2011 |
FAI vs SCHD Performance
First Trust Bloomberg Artificial Intelligence ETF (FAI) 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 FAI returned +48.02% while SCHD returned +31.88%. Year to date, FAI is up 31.63% versus a gain of 24.08% for SCHD.
Risk: Volatility and Drawdowns
FAI has been the more volatile fund, with annualized monthly volatility of 31.5% 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 -27.8% for FAI 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAI charges 0.65% per year while SCHD charges 0.06%. On a $10,000 position that is $65 vs $6 annually, a gap of $59 per year that compounds over a long holding period. On income, FAI currently yields 0.00% against 3.31% for SCHD.
Holdings Overlap
FAI and SCHD share 1 holdings out of 149 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FAI | Weight in SCHD | Difference |
|---|---|---|---|
| QCOM | 1.52% | 2.72% | 1.20% |
Frequently Asked Questions
Which is cheaper, FAI or SCHD?
FAI has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, FAI or SCHD?
Over the past year FAI returned +48.02% vs +31.88% for SCHD, so FAI leads on 1-year performance. Over the longest common window we track (2 years), FAI annualized +41.43% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FAI or SCHD?
FAI has been the more volatile fund at 31.5% annualized versus 13.6% for SCHD. Worst drawdown: FAI -27.8% vs SCHD -33.4%.
Should I hold both FAI and SCHD?
FAI and SCHD have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAI and SCHD?
FAI and SCHD share 1 common holdings with a 1.5% weight overlap. Combined, they hold 149 unique securities.
Which pays a higher dividend, FAI or SCHD?
FAI yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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