HYLS vs SCHD
HYLS vs SCHD
First Trust Tactical High Yield ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. HYLS offers more diversification with 219 holdings.
Side-by-Side Comparison
| Metric | HYLS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.06% | |
| AUM | $1.6B | $103.7B | |
| Dividend Yield | 6.71% | 3.31% | |
| Holdings | 315 | 104 | |
| YTD Return | +1.16% | +24.26% | |
| 1Y Return | +3.56% | +31.38% | |
| 3Y Return (annualized) | +7.38% | +15.08% | |
| 5Y Return (annualized) | +2.84% | +9.72% | |
| Volatility (annualized) | 7.1% | 13.6% | |
| Max Drawdown | -29.1% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 25, 2013 | Oct 20, 2011 |
HYLS vs SCHD Performance
First Trust Tactical High Yield ETF (HYLS) 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 HYLS returned +3.56% while SCHD returned +31.38%. Year to date, HYLS is up 1.16% versus a gain of 24.26% for SCHD.
Over three years, HYLS compounded at +7.38% per year against +15.08% for SCHD; over five years the annualized figures are +2.84% and +9.72% respectively. Across the full 13-year window we track, SCHD has the edge at +11.39% annualized vs +0.97%. 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 7.1% for HYLS. 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 -29.1% for HYLS 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYLS charges 0.69% per year while SCHD charges 0.06%. On a $10,000 position that is $69 vs $6 annually, a gap of $63 per year that compounds over a long holding period. On income, HYLS currently yields 6.71% against 3.31% for SCHD.
Holdings Overlap
HYLS and SCHD share 0 holdings out of 319 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, HYLS or SCHD?
HYLS has an expense ratio of 0.69% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $63 per year of difference.
Which performed better, HYLS or SCHD?
Over the past year HYLS returned +3.56% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), HYLS annualized +0.97% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, HYLS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 7.1% for HYLS. Worst drawdown: HYLS -29.1% vs SCHD -33.4%.
Should I hold both HYLS and SCHD?
HYLS and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYLS and SCHD?
HYLS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 319 unique securities.
Which pays a higher dividend, HYLS or SCHD?
HYLS yields 6.71% while SCHD yields 3.31%, so HYLS currently pays the higher dividend yield.
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