FT vs SCHD
FT vs SCHD
Franklin Universal Trust vs Schwab US Dividend Equity ETF
Quick Verdict
FT has a lower expense ratio. SCHD delivered stronger 1-year returns. FT offers more diversification with 307 holdings.
Side-by-Side Comparison
| Metric | FT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.00% | 0.06% | |
| AUM | $212M | $103.7B | |
| Dividend Yield | 5.73% | 3.31% | |
| Holdings | 704 | 104 | |
| YTD Return | +2.08% | +23.02% | |
| 1Y Return | +6.56% | +30.75% | |
| 3Y Return (annualized) | +12.28% | +14.89% | |
| 5Y Return (annualized) | +5.71% | +9.38% | |
| Volatility (annualized) | 15.5% | 13.6% | |
| Max Drawdown | -70.3% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 23, 1988 | Oct 20, 2011 |
FT vs SCHD Performance
Franklin Universal Trust (FT) 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 FT returned +6.56% while SCHD returned +30.75%. Year to date, FT is up 2.08% versus a gain of 23.02% for SCHD.
Over three years, FT compounded at +12.28% per year against +14.89% for SCHD; over five years the annualized figures are +5.71% and +9.38% respectively. Across the full 15-year window we track, SCHD has the edge at +11.33% annualized vs +0.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FT has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -70.3% for FT 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FT charges 0.00% per year while SCHD charges 0.06%. On a $10,000 position that is $0 vs $6 annually, a gap of $6 per year that compounds over a long holding period. On income, FT currently yields 5.73% against 3.31% for SCHD.
Holdings Overlap
FT and SCHD share 0 holdings out of 407 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, FT or SCHD?
FT has an expense ratio of 0.00% while SCHD charges 0.06%. FT is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, FT or SCHD?
Over the past year FT returned +6.56% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FT annualized +0.78% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, FT or SCHD?
FT has been the more volatile fund at 15.5% annualized versus 13.6% for SCHD. Worst drawdown: FT -70.3% vs SCHD -33.4%.
Should I hold both FT and SCHD?
FT and SCHD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FT and SCHD?
FT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 407 unique securities.
Which pays a higher dividend, FT or SCHD?
FT yields 5.73% while SCHD yields 3.31%, so FT currently pays the higher dividend yield.
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