FLHY vs SCHD
FLHY vs SCHD
Franklin High Yield Corporate ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FLHY offers more diversification with 213 holdings.
Side-by-Side Comparison
| Metric | FLHY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.06% | |
| AUM | $1.2B | $103.7B | |
| Dividend Yield | 6.53% | 3.31% | |
| Holdings | 263 | 104 | |
| YTD Return | -1.00% | +24.26% | |
| 1Y Return | +1.81% | +31.38% | |
| 3Y Return (annualized) | +7.33% | +15.08% | |
| 5Y Return (annualized) | +3.74% | +9.72% | |
| Volatility (annualized) | 8.2% | 13.6% | |
| Max Drawdown | -22.6% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 30, 2018 | Oct 20, 2011 |
FLHY vs SCHD Performance
Franklin High Yield Corporate ETF (FLHY) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FLHY returned +1.81% while SCHD returned +31.38%. Year to date, FLHY is down 1.00% versus a gain of 24.26% for SCHD.
Over three years, FLHY compounded at +7.33% per year against +15.08% for SCHD; over five years the annualized figures are +3.74% and +9.72% respectively. Across the full 8-year window we track, SCHD has the edge at +11.39% annualized vs +5.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.2% for FLHY. 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 -22.6% for FLHY 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FLHY charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, FLHY currently yields 6.53% against 3.31% for SCHD.
Holdings Overlap
FLHY and SCHD share 0 holdings out of 313 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, FLHY or SCHD?
FLHY has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, FLHY or SCHD?
Over the past year FLHY returned +1.81% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), FLHY annualized +5.26% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FLHY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.2% for FLHY. Worst drawdown: FLHY -22.6% vs SCHD -33.4%.
Should I hold both FLHY and SCHD?
FLHY and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLHY and SCHD?
FLHY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 313 unique securities.
Which pays a higher dividend, FLHY or SCHD?
FLHY yields 6.53% while SCHD yields 3.31%, so FLHY currently pays the higher dividend yield.
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