First Trust Long/Short Equity ETF (FTLS) 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 FTLS returned +15.54% while SCHD returned +31.38%. Year to date, FTLS is up 7.28% versus a gain of 24.26% for SCHD.

Over three years, FTLS compounded at +13.51% per year against +15.08% for SCHD; over five years the annualized figures are +10.29% and +9.72% respectively. Across the full 12-year window we track, SCHD has the edge at +11.39% annualized vs +8.63%. Past performance does not guarantee future results.

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.7% for FTLS. 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 -20.5% for FTLS 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 0.78. They usually move together, but the gap leaves some room for diversification.

FTLS charges 1.38% per year while SCHD charges 0.06%. On a $10,000 position that is $138 vs $6 annually, a gap of $132 per year that compounds over a long holding period. On income, FTLS currently yields 0.90% against 3.31% for SCHD.