FRA vs SCHD
FRA vs SCHD
Blackrock Floating Rate Income Strategies Fund Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FRA offers more diversification with 221 holdings.
Side-by-Side Comparison
| Metric | FRA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.97% | 0.06% | |
| AUM | $402M | $103.7B | |
| Dividend Yield | 13.06% | 3.31% | |
| Holdings | 469 | 104 | |
| YTD Return | -0.40% | +24.08% | |
| 1Y Return | -6.85% | +31.88% | |
| 3Y Return (annualized) | +7.37% | +14.92% | |
| 5Y Return (annualized) | +6.07% | +9.85% | |
| Volatility (annualized) | 14.5% | 13.6% | |
| Max Drawdown | -51.4% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 31, 2003 | Oct 20, 2011 |
FRA vs SCHD Performance
Blackrock Floating Rate Income Strategies Fund Inc (FRA) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FRA returned -6.85% while SCHD returned +31.88%. Year to date, FRA is down 0.40% versus a gain of 24.08% for SCHD.
Over three years, FRA compounded at +7.37% per year against +14.92% for SCHD; over five years the annualized figures are +6.07% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +5.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FRA has been the more volatile fund, with annualized monthly volatility of 14.5% 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 -51.4% for FRA 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FRA charges 2.97% per year while SCHD charges 0.06%. On a $10,000 position that is $297 vs $6 annually, a gap of $291 per year that compounds over a long holding period. On income, FRA currently yields 13.06% against 3.31% for SCHD.
Holdings Overlap
FRA and SCHD share 0 holdings out of 321 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, FRA or SCHD?
FRA has an expense ratio of 2.97% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $291 per year of difference.
Which performed better, FRA or SCHD?
Over the past year FRA returned -6.85% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FRA annualized +5.13% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FRA or SCHD?
FRA has been the more volatile fund at 14.5% annualized versus 13.6% for SCHD. Worst drawdown: FRA -51.4% vs SCHD -33.4%.
Should I hold both FRA and SCHD?
FRA and SCHD have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRA and SCHD?
FRA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 321 unique securities.
Which pays a higher dividend, FRA or SCHD?
FRA yields 13.06% while SCHD yields 3.31%, so FRA currently pays the higher dividend yield.
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