LMBS vs SCHD
LMBS vs SCHD
First Trust Low Duration Opportunities ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LMBS offers more diversification with 764 holdings.
Side-by-Side Comparison
| Metric | LMBS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.06% | |
| AUM | $6.4B | $103.7B | |
| Dividend Yield | 4.10% | 3.31% | |
| Holdings | 1,213 | 104 | |
| YTD Return | +1.53% | +23.02% | |
| 1Y Return | +4.04% | +30.75% | |
| 3Y Return (annualized) | +5.67% | +14.89% | |
| 5Y Return (annualized) | +3.00% | +9.38% | |
| Volatility (annualized) | 2.2% | 13.6% | |
| Max Drawdown | -8.5% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Nov 4, 2014 | Oct 20, 2011 |
LMBS vs SCHD Performance
First Trust Low Duration Opportunities ETF (LMBS) 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 LMBS returned +4.04% while SCHD returned +30.75%. Year to date, LMBS is up 1.53% versus a gain of 23.02% for SCHD.
Over three years, LMBS compounded at +5.67% per year against +14.89% for SCHD; over five years the annualized figures are +3.00% and +9.38% respectively. Across the full 12-year window we track, SCHD has the edge at +11.33% annualized vs +1.49%. 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 2.2% for LMBS. 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 -8.5% for LMBS 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LMBS charges 0.65% per year while SCHD charges 0.06%. On a $10,000 position that is $65 vs $6 annually, a gap of $59 per year that compounds over a long holding period. On income, LMBS currently yields 4.10% against 3.31% for SCHD.
Holdings Overlap
LMBS and SCHD share 0 holdings out of 864 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, LMBS or SCHD?
LMBS has an expense ratio of 0.65% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, LMBS or SCHD?
Over the past year LMBS returned +4.04% vs +30.75% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), LMBS annualized +1.49% vs +11.33% for SCHD. Past performance does not guarantee future results.
Which is riskier, LMBS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 2.2% for LMBS. Worst drawdown: LMBS -8.5% vs SCHD -33.4%.
Should I hold both LMBS and SCHD?
LMBS and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LMBS and SCHD?
LMBS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 864 unique securities.
Which pays a higher dividend, LMBS or SCHD?
LMBS yields 4.10% while SCHD yields 3.31%, so LMBS currently pays the higher dividend yield.
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