SCHD vs UCON
SCHD vs UCON
Schwab US Dividend Equity ETF vs First Trust Smith Unconstrained Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. UCON offers more diversification with 320 holdings.
Side-by-Side Comparison
| Metric | SCHD | UCON | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.86% | |
| AUM | $103.7B | $3.3B | |
| Dividend Yield | 3.31% | 5.11% | |
| Holdings | 104 | 456 | |
| YTD Return | +24.08% | +0.64% | |
| 1Y Return | +31.88% | +3.55% | |
| 3Y Return (annualized) | +14.92% | +5.45% | |
| 5Y Return (annualized) | +9.85% | +2.72% | |
| Volatility (annualized) | 13.6% | 4.5% | |
| Max Drawdown | -33.4% | -15.3% | |
| Fund Family | Charles Schwab Asset Management | First Trust Portfolios (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Jun 4, 2018 |
SCHD vs UCON Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and First Trust Smith Unconstrained Bond ETF (UCON) is a ETF from First Trust Portfolios (US). Over the past year SCHD returned +31.88% while UCON returned +3.55%. Year to date, SCHD is up 24.08% versus a gain of 0.64% for UCON.
Over three years, SCHD compounded at +14.92% per year against +5.45% for UCON; over five years the annualized figures are +9.85% and +2.72% respectively. Across the full 8-year window we track, SCHD has the edge at +11.39% annualized vs +2.56%. 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 4.5% for UCON. 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 -33.4% for SCHD and -15.3% for UCON. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while UCON charges 0.86%. On a $10,000 position that is $6 vs $86 annually, a gap of $80 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 5.11% for UCON.
Holdings Overlap
SCHD and UCON share 0 holdings out of 420 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, SCHD or UCON?
SCHD has an expense ratio of 0.06% while UCON charges 0.86%. SCHD is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, SCHD or UCON?
Over the past year SCHD returned +31.88% vs +3.55% for UCON, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), SCHD annualized +11.39% vs +2.56% for UCON. Past performance does not guarantee future results.
Which is riskier, SCHD or UCON?
SCHD has been the more volatile fund at 13.6% annualized versus 4.5% for UCON. Worst drawdown: SCHD -33.4% vs UCON -15.3%.
Should I hold both SCHD and UCON?
SCHD and UCON have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and UCON?
SCHD and UCON share 0 common holdings with a 0.0% weight overlap. Combined, they hold 420 unique securities.
Which pays a higher dividend, SCHD or UCON?
SCHD yields 3.31% while UCON yields 5.11%, so UCON currently pays the higher dividend yield.
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