FDM vs. SCHD

Last updated Aug 4, 2026

FDM (First Trust Dow Jones Select MicroCap Index Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - FDM is a Small Cap Blend Equities fund tracking the Dow Jones Select Microcap Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, FDM returned 11.85%/yr vs 12.70%/yr for SCHD. Their 0.70 correlation means they have sometimes moved together and sometimes differently. FDM charges 0.60%/yr vs 0.06%/yr for SCHD.

Performance

FDM vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones Select MicroCap Index Fund (FDM) and Schwab U.S. Dividend Equity ETF (SCHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDM achieves a 17.92% return, which is significantly lower than SCHD's 24.36% return. Over the past 10 years, FDM has underperformed SCHD with an annualized return of 11.85%, while SCHD has yielded a comparatively higher 12.70% annualized return.

FDM

• 1D: 1.96%
• 1M: 0.81%
• 6M: 9.75%
• YTD: 17.92%
• 1Y: 37.07%
• 3Y*: 17.63%
• 5Y*: 11.50%
• 10Y*: 11.85%
• ALL TIME*: 8.92%

SCHD

• 1D: 0.27%
• 1M: 3.61%
• 6M: 13.71%
• YTD: 24.36%
• 1Y: 31.89%
• 3Y*: 14.88%
• 5Y*: 9.66%
• 10Y*: 12.70%
• ALL TIME*: 13.40%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FDM First Trust Dow Jones Select MicroCap Index Fund	$657.67K	$929.96K	$758.49K
SCHD Schwab U.S. Dividend Equity ETF	$806.58M	$724.91M	$690.35M

FDM vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDM First Trust Dow Jones Select MicroCap Index Fund	17.92%	18.64%	13.00%	12.76%	-11.61%	35.08%	-4.04%	27.45%	-13.53%	8.72%
SCHD Schwab U.S. Dividend Equity ETF	24.36%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between FDM and SCHD is 0.48, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.48
Correlation (3Y) Balances recent behavior with more history.	0.62
Correlation (5Y) Shows whether the relationship held over a longer period.	0.70
Correlation (10Y) Provides a long-term view across more market conditions.	0.69
Correlation (All Time) Calculated using the full available price history since Oct 20, 2011	0.70

Over the past year, the correlation between FDM and SCHD has dropped to 0.48 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

FDM vs. SCHD - Sectors Allocation Comparison

Sectors	FDM	SCHD
Financial Services	43.4%	9.9%
Industrials	14.3%	7.8%
Consumer Cyclical	9.8%	7.7%
Healthcare	6.6%	20.8%
Technology	6.6%	12.7%
Basic Materials	4.9%	1.2%
Consumer Defensive	4.6%	20.6%
Energy	4.4%	14.1%
Communication Services	3.2%	6.2%
Real Estate	1.3%	-
Utilities	0.9%	0.1%

Return for Risk

FDM vs. SCHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FDM

FDM Risk / Return Rank: 85
FDM Sharpe Ratio Rank: 84
FDM Sortino Ratio Rank: 85
FDM Omega Ratio Rank: 80
FDM Calmar Ratio Rank: 90
FDM Martin Ratio Rank: 85

SCHD

SCHD Risk / Return Rank: 95
SCHD Sharpe Ratio Rank: 96
SCHD Sortino Ratio Rank: 96
SCHD Omega Ratio Rank: 94
SCHD Calmar Ratio Rank: 97
SCHD Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FDM vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Select MicroCap Index Fund (FDM) and Schwab U.S. Dividend Equity ETF (SCHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FDM	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	2.03	2.90	-0.87
Sortino ratio: Return per unit of downside risk	2.94	4.49	-1.56
Omega ratio: Gain probability vs. loss probability	1.35	1.52	-0.17
Calmar ratio: Return relative to maximum drawdown	4.00	6.94	-2.94
Martin ratio: Return relative to average drawdown	12.61	17.53	-4.91

FDM vs. SCHD - Sharpe Ratio Comparison

The current FDM Sharpe Ratio is 2.03, which is lower than the SCHD Sharpe Ratio of 2.90. The chart below compares the historical Sharpe Ratios of FDM and SCHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FDM vs. SCHD - Drawdown Comparison

The maximum FDM drawdown since its inception was -63.45%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for FDM and SCHD.

Drawdown Indicators

	FDM	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-33.37%	-30.08%
Max Drawdown (1Y) Largest decline over 1 year	-9.30%	-4.61%	-4.69%
Max Drawdown (3Y) Largest decline over 3 years	-23.47%	-16.13%	-7.34%
Max Drawdown (5Y) Largest decline over 5 years	-23.74%	-16.85%	-6.89%
Max Drawdown (10Y) Largest decline over 10 years	-47.76%	-33.37%	-14.39%
Current Drawdown Current decline from peak	-0.58%	-0.97%	+0.39%
Average Drawdown Average peak-to-trough decline	-11.27%	-3.29%	-7.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.95%	1.82%	+1.13%

Volatility

FDM vs. SCHD - Volatility Comparison

First Trust Dow Jones Select MicroCap Index Fund (FDM) has a higher volatility of 4.18% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.82%. This indicates that FDM's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDM	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.18%	3.82%	+0.36%
Volatility (6M) Calculated over the trailing 6-month period	12.57%	7.99%	+4.58%
Volatility (1Y) Calculated over the trailing 1-year period	18.38%	11.06%	+7.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.26%	14.39%	+6.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.34%	16.73%	+6.61%

FDM vs. SCHD - Expense Ratio Comparison

FDM has a 0.60% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

FDM vs. SCHD - Dividend Comparison

FDM's dividend yield for the trailing twelve months is around 1.34%, less than SCHD's 3.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDM First Trust Dow Jones Select MicroCap Index Fund	1.34%	1.43%	1.56%	1.81%	1.80%	1.08%	1.68%	1.37%	1.26%	0.97%	1.13%	1.45%
SCHD Schwab U.S. Dividend Equity ETF	3.12%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%

Frequently Asked Questions

Can I hold both FDM and SCHD in my portfolio?

FDM and SCHD have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDM or SCHD?

FDM has higher volatility (4.18%) compared to SCHD (3.82%). In terms of maximum drawdown, FDM dropped -63.45% vs SCHD's -33.37%.

Which ETF is better, FDM or SCHD?

On 10-year performance, SCHD leads with 12.70% vs 11.85% for FDM. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDM or SCHD?

Over the 10-year period, SCHD has performed better with a 12.70% return vs 11.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDM or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.60% for FDM.

Which ETF pays a higher dividend yield, FDM or SCHD?

SCHD has the higher dividend yield at 3.12%, compared with 1.34% for FDM.

What is the main difference between FDM and SCHD?

FDM is categorized as Small Cap Blend Equities, while SCHD is Dividend. FDM tracks Dow Jones Select Microcap Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: First Trust and Charles Schwab. Their fees differ too: 0.60% for FDM and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.90 vs 2.03), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.