FGD vs. SCHD
Compare and contrast key facts about First Trust Dow Jones Global Select Dividend Index Fund (FGD) and Schwab US Dividend Equity ETF (SCHD).
FGD and SCHD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FGD is a passively managed fund by First Trust that tracks the performance of the Dow Jones Global Select Dividend Index. It was launched on Nov 21, 2007. SCHD is a passively managed fund by Charles Schwab that tracks the performance of the Dow Jones U.S. Dividend 100 Index. It was launched on Oct 20, 2011. Both FGD and SCHD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FGD or SCHD.
Key characteristics
| FGD | SCHD | |
|---|---|---|
| YTD Return | 2.06% | 2.29% |
| 1Y Return | 8.89% | 13.67% |
| 3Y Return (Ann) | 1.23% | 4.36% |
| 5Y Return (Ann) | 5.01% | 11.21% |
| 10Y Return (Ann) | 3.00% | 11.00% |
| Sharpe Ratio | 0.70 | 1.11 |
| Daily Std Dev | 12.97% | 11.38% |
| Max Drawdown | -68.05% | -33.37% |
| Current Drawdown | -3.74% | -4.17% |
Correlation
The correlation between FGD and SCHD is 0.78, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FGD vs. SCHD - Performance Comparison
In the year-to-date period, FGD achieves a 2.06% return, which is significantly lower than SCHD's 2.29% return. Over the past 10 years, FGD has underperformed SCHD with an annualized return of 3.00%, while SCHD has yielded a comparatively higher 11.00% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FGD vs. SCHD - Expense Ratio Comparison
FGD has a 0.59% expense ratio, which is higher than SCHD's 0.06% expense ratio.
Risk-Adjusted Performance
FGD vs. SCHD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Global Select Dividend Index Fund (FGD) and Schwab US 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.
Dividends
FGD vs. SCHD - Dividend Comparison
FGD's dividend yield for the trailing twelve months is around 5.92%, more than SCHD's 3.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FGD First Trust Dow Jones Global Select Dividend Index Fund | 5.92% | 6.44% | 5.74% | 5.35% | 6.17% | 5.19% | 5.88% | 4.01% | 4.36% | 5.07% | 5.18% | 4.51% |
SCHD Schwab US Dividend Equity ETF | 3.46% | 3.49% | 3.39% | 2.78% | 3.16% | 2.98% | 3.06% | 2.63% | 2.89% | 2.97% | 2.63% | 2.47% |
Drawdowns
FGD vs. SCHD - Drawdown Comparison
The maximum FGD drawdown since its inception was -68.05%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for FGD and SCHD. For additional features, visit the drawdowns tool.
Volatility
FGD vs. SCHD - Volatility Comparison
First Trust Dow Jones Global Select Dividend Index Fund (FGD) has a higher volatility of 4.31% compared to Schwab US Dividend Equity ETF (SCHD) at 3.59%. This indicates that FGD'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.