FTCB vs SCHD
FTCB vs SCHD
First Trust Core Investment Grade ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FTCB offers more diversification with 331 holdings.
Side-by-Side Comparison
| Metric | FTCB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.06% | |
| AUM | $2.5B | $103.7B | |
| Dividend Yield | 5.24% | 3.31% | |
| Holdings | 721 | 104 | |
| YTD Return | -0.22% | +23.02% | |
| 1Y Return | +2.08% | +30.75% | |
| 3Y Return (annualized) | - | +14.89% | |
| 5Y Return (annualized) | - | +9.38% | |
| Volatility (annualized) | 5.1% | 13.6% | |
| Max Drawdown | -5.0% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2023 | Oct 20, 2011 |
FTCB vs SCHD Performance
First Trust Core Investment Grade ETF (FTCB) 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 FTCB returned +2.08% while SCHD returned +30.75%. Year to date, FTCB is down 0.22% versus a gain of 23.02% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 5.1% for FTCB. 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 -5.0% for FTCB 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTCB charges 0.56% per year while SCHD charges 0.06%. On a $10,000 position that is $56 vs $6 annually, a gap of $50 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 3.31% for SCHD.
Holdings Overlap
FTCB and SCHD share 0 holdings out of 431 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, FTCB or SCHD?
FTCB has an expense ratio of 0.56% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, FTCB or SCHD?
Over the past year FTCB returned +2.08% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.67% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTCB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs SCHD -33.4%.
Should I hold both FTCB and SCHD?
FTCB and SCHD have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTCB and SCHD?
FTCB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 431 unique securities.
Which pays a higher dividend, FTCB or SCHD?
FTCB yields 5.24% while SCHD yields 3.31%, so FTCB currently pays the higher dividend yield.
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