FMY vs SCHD
FMY vs SCHD
First Trust Mortgage Income Fund 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 | FMY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.06% | |
| AUM | $52M | $103.7B | |
| Dividend Yield | 6.29% | 3.31% | |
| Holdings | 166 | 104 | |
| YTD Return | -0.36% | +24.08% | |
| 1Y Return | +0.46% | +31.88% | |
| 3Y Return (annualized) | +8.52% | +14.92% | |
| 5Y Return (annualized) | +2.98% | +9.85% | |
| Volatility (annualized) | 8.8% | 13.6% | |
| Max Drawdown | -47.3% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2005 | Oct 20, 2011 |
FMY vs SCHD Performance
First Trust Mortgage Income Fund (FMY) 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 FMY returned +0.46% while SCHD returned +31.88%. Year to date, FMY is down 0.36% versus a gain of 24.08% for SCHD.
Over three years, FMY compounded at +8.52% per year against +14.92% for SCHD; over five years the annualized figures are +2.98% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.91%. 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 8.8% for FMY. 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 -47.3% for FMY 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMY charges 1.35% per year while SCHD charges 0.06%. On a $10,000 position that is $135 vs $6 annually, a gap of $129 per year that compounds over a long holding period. On income, FMY currently yields 6.29% against 3.31% for SCHD.
Holdings Overlap
FMY and SCHD share 0 holdings out of 129 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, FMY or SCHD?
FMY has an expense ratio of 1.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $129 per year of difference.
Which performed better, FMY or SCHD?
Over the past year FMY returned +0.46% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FMY annualized -0.91% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FMY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.8% for FMY. Worst drawdown: FMY -47.3% vs SCHD -33.4%.
Should I hold both FMY and SCHD?
FMY and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMY and SCHD?
FMY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 129 unique securities.
Which pays a higher dividend, FMY or SCHD?
FMY yields 6.29% while SCHD yields 3.31%, so FMY currently pays the higher dividend yield.
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