FTSM vs SCHD
FTSM vs SCHD
First Trust Enhanced Short Maturity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FTSM offers more diversification with 391 holdings.
Side-by-Side Comparison
| Metric | FTSM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.06% | |
| AUM | $6.5B | $103.7B | |
| Dividend Yield | 4.14% | 3.31% | |
| Holdings | 634 | 104 | |
| YTD Return | +1.67% | +22.69% | |
| 1Y Return | +3.71% | +30.94% | |
| 3Y Return (annualized) | +4.69% | +14.20% | |
| 5Y Return (annualized) | +3.51% | +9.59% | |
| Volatility (annualized) | 1.2% | 13.7% | |
| Max Drawdown | -5.4% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Aug 5, 2014 | Oct 20, 2011 |
FTSM vs SCHD Performance
First Trust Enhanced Short Maturity ETF (FTSM) 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 FTSM returned +3.71% while SCHD returned +30.94%. Year to date, FTSM is up 1.67% versus a gain of 22.69% for SCHD.
Over three years, FTSM compounded at +4.69% per year against +14.20% for SCHD; over five years the annualized figures are +3.51% and +9.59% respectively. Across the full 12-year window we track, SCHD has the edge at +11.31% annualized vs +1.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 1.2% for FTSM. 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 -5.4% for FTSM 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSM charges 0.29% per year while SCHD charges 0.06%. On a $10,000 position that is $29 vs $6 annually, a gap of $23 per year that compounds over a long holding period. On income, FTSM currently yields 4.14% against 3.31% for SCHD.
Holdings Overlap
FTSM and SCHD share 0 holdings out of 491 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, FTSM or SCHD?
FTSM has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, FTSM or SCHD?
Over the past year FTSM returned +3.71% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), FTSM annualized +1.45% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, FTSM or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 1.2% for FTSM. Worst drawdown: FTSM -5.4% vs SCHD -33.4%.
Should I hold both FTSM and SCHD?
FTSM and SCHD have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSM and SCHD?
FTSM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 491 unique securities.
Which pays a higher dividend, FTSM or SCHD?
FTSM yields 4.14% while SCHD yields 3.31%, so FTSM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.