RND vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricRNDSCHDWinner
Expense Ratio0.60%0.06%
AUM$9M$103.7B
Dividend Yield0.00%3.31%
Holdings51104
YTD Return+9.68%+23.53%
1Y Return+20.30%+30.95%
3Y Return (annualized)-+14.72%
5Y Return (annualized)-+9.56%
Volatility (annualized)16.2%13.6%
Max Drawdown-23.5%-33.4%
Fund FamilyFirst Trust Portfolios (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionApr 30, 2024Oct 20, 2011

RND vs SCHD Performance

First Trust Bloomberg R&D Leaders ETF (RND) 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 RND returned +20.30% while SCHD returned +30.95%. Year to date, RND is up 9.68% versus a gain of 23.53% for SCHD.

Risk: Volatility and Drawdowns

RND has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 13.6% for SCHD. 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 -23.5% for RND 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 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RND charges 0.60% per year while SCHD charges 0.06%. On a $10,000 position that is $60 vs $6 annually, a gap of $54 per year that compounds over a long holding period. On income, RND currently yields 0.00% against 3.31% for SCHD.

Holdings Overlap

4.5%overlap

RND and SCHD share 3 holdings out of 147 unique holdings combined, representing a 4.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RNDWeight in SCHDDifference
AMGN3.25%4.25%1.00%
TXN0.74%3.70%2.96%
QCOM0.54%2.72%2.18%

Frequently Asked Questions

Which is cheaper, RND or SCHD?

RND has an expense ratio of 0.60% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $54 per year of difference.

Which performed better, RND or SCHD?

Over the past year RND returned +20.30% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), RND annualized +26.34% vs +11.35% for SCHD. Past performance does not guarantee future results.

Which is riskier, RND or SCHD?

RND has been the more volatile fund at 16.2% annualized versus 13.6% for SCHD. Worst drawdown: RND -23.5% vs SCHD -33.4%.

Should I hold both RND and SCHD?

RND and SCHD have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RND and SCHD?

RND and SCHD share 3 common holdings with a 4.5% weight overlap. Combined, they hold 147 unique securities.

Which pays a higher dividend, RND or SCHD?

RND yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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