FTLS vs SCHD
First Trust Long/Short Equity ETF vs Schwab US Dividend Equity ETF
Which is better, FTLS or SCHD?
Multi Alternative against Large Cap Value.
SCHD has a lower expense ratio. FTLS led over 5Y, SCHD over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FTLS | SCHD |
|---|---|---|
| Expense Ratio | 1.38% | 0.06%Best |
| AUM | $2.7B | $111.6B |
| Dividend Yield | 0.87% | 3.24% |
| Holdings | 363 | 206 |
| YTD Return | +9.83% | +24.55%Best |
| 1Y Return | +13.43% | +29.85%Best |
| 3Y Return (annualized) | +14.42% | +16.64%Best |
| 5Y Return (annualized) | +10.59%Best | +9.54% |
| Volatility (annualized) | 8.7%Best | 14.7% |
| Max Drawdown | -20.5%Best | -33.4% |
| $10,000 over 5 years | $16,542Best | $15,771 |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Alternative | Equity |
| Style | Multi Alternative | Large Cap Value |
| Inception | Sep 8, 2014 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2014 to Oct 14, 2026 (12.1 years).
FTLS vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12.1 years both funds cover.
FTLS vs SCHD Performance
First Trust Long/Short Equity ETF (FTLS) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FTLS returned +13.43% while SCHD returned +29.85%. Year to date, FTLS is up 9.83% versus a gain of 24.55% for SCHD.
Over three years, FTLS compounded at +14.42% per year against +16.64% for SCHD; over five years the annualized figures are +10.59% and +9.54% respectively. Across the full 12-year window we track, SCHD has the edge at +10.06% annualized vs +8.71%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 8.7% for FTLS. 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 -20.5% for FTLS and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTLS charges 1.38% per year while SCHD charges 0.06%. On a $10,000 position that is $138 vs $6 annually, a gap of $132 per year that compounds over a long holding period. On income, FTLS currently yields 0.87% against 3.24% for SCHD.
Holdings Overlap
At least 42.5% of SCHD's money is in holdings FTLS also owns.
Stated as a floor: for FTLS, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
22 positions in common, counted across the 507 positions we hold weights for in FTLS and 98 in SCHD, against full books of 363 and 206.
Top Shared Holdings
| Stock | Weight in FTLS | Weight in SCHD | Difference |
|---|---|---|---|
| TXNTexas Instrument Inc | 1.14% | 4.89% | 3.75% |
| CVXChevron Corp | 0.71% | 4.14% | 3.43% |
| VZVerizon Communic | 0.88% | 3.88% | 3.00% |
| KOCoca Cola Co. | 0.57% | 4.12% | 3.55% |
| MRKMerck & Company Inc | 0.64% | 4.04% | 3.40% |
| COPConocophillips Common Stock USD 0.01 | 0.35% | 3.91% | 3.56% |
| AMGNAmgen Inc. | 0.38% | 3.86% | 3.48% |
| BMYBristol-Myers Squibb Co. | 0.53% | 3.21% | 2.68% |
| MOAltria Group Inc | 0.34% | 2.89% | 2.55% |
| SLBSchlumberger Nv. | -0.15% | 1.86% | 2.01% |
42.5% of SCHD is already inside FTLS.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTLS or SCHD?
FTLS has an expense ratio of 1.38% while SCHD charges 0.06%. SCHD is the cheaper option, by $132 a year on a $10,000 investment.
Which performed better, FTLS or SCHD?
Over the past year FTLS returned +13.43% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), FTLS annualized +8.71% vs +10.06% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTLS or SCHD?
SCHD has been the more volatile fund at 14.7% annualized versus 8.7% for FTLS. Worst drawdown: FTLS -20.5% vs SCHD -33.4%.
Should I hold both FTLS and SCHD?
FTLS and SCHD have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FTLS and SCHD?
At least 42.5% of SCHD's money is in holdings FTLS also owns. Our book for FTLS is partial, so the real figure is this or higher. They hold 22 positions in common, counted across the 507 positions we hold weights for in FTLS and 98 in SCHD.
Which pays a higher dividend, FTLS or SCHD?
FTLS yields 0.87% while SCHD yields 3.24%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FTLS?
SCHD has a lower expense ratio. FTLS led over 5Y, SCHD over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.