FTHI vs SCHD
FTHI vs SCHD
First Trust BuyWrite Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FTHI offers more diversification with 168 holdings.
Side-by-Side Comparison
| Metric | FTHI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.06% | |
| AUM | $2.4B | $103.7B | |
| Dividend Yield | 8.76% | 3.31% | |
| Holdings | 208 | 104 | |
| YTD Return | +6.48% | +23.31% | |
| 1Y Return | +13.05% | +30.42% | |
| 3Y Return (annualized) | +13.73% | +14.66% | |
| 5Y Return (annualized) | +11.22% | +9.59% | |
| Volatility (annualized) | 11.5% | 13.6% | |
| Max Drawdown | -35.5% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Jan 6, 2014 | Oct 20, 2011 |
FTHI vs SCHD Performance
First Trust BuyWrite Income ETF (FTHI) 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 FTHI returned +13.05% while SCHD returned +30.42%. Year to date, FTHI is up 6.48% versus a gain of 23.31% for SCHD.
Over three years, FTHI compounded at +13.73% per year against +14.66% for SCHD; over five years the annualized figures are +11.22% and +9.59% respectively. Across the full 13-year window we track, SCHD has the edge at +11.34% annualized vs +5.02%. 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 11.5% for FTHI. 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 -35.5% for FTHI 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTHI charges 0.76% per year while SCHD charges 0.06%. On a $10,000 position that is $76 vs $6 annually, a gap of $70 per year that compounds over a long holding period. On income, FTHI currently yields 8.76% against 3.31% for SCHD.
Holdings Overlap
FTHI and SCHD share 10 holdings out of 258 unique holdings combined, representing a 5.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FTHI | Weight in SCHD | Difference |
|---|---|---|---|
| AMGN | 1.40% | 4.25% | 2.85% |
| MRK | 0.38% | 4.32% | 3.94% |
| KO | 0.52% | 4.08% | 3.56% |
| CVX | Pro | Pro | Pro |
| MO | Pro | Pro | Pro |
| UPS | Pro | Pro | Pro |
| DINO | Pro | Pro | Pro |
| EWBC | Pro | Pro | Pro |
| APA | Pro | Pro | Pro |
| CVBF | Pro | Pro | Pro |
See all 10 holdings FTHI shares with SCHD Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FTHI or SCHD?
FTHI has an expense ratio of 0.76% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, FTHI or SCHD?
Over the past year FTHI returned +13.05% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FTHI annualized +5.02% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTHI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.5% for FTHI. Worst drawdown: FTHI -35.5% vs SCHD -33.4%.
Should I hold both FTHI and SCHD?
FTHI and SCHD have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTHI and SCHD?
FTHI and SCHD share 10 common holdings with a 5.4% weight overlap. Combined, they hold 258 unique securities.
Which pays a higher dividend, FTHI or SCHD?
FTHI yields 8.76% while SCHD yields 3.31%, so FTHI currently pays the higher dividend yield.
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