KNG vs. SCHD

Last updated Jun 24, 2026

KNG (FT Vest S&P 500 Dividend Aristocrats Target Income ETF) and SCHD (Schwab U.S. Dividend Equity ETF) are both Dividend funds - KNG tracks the Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series while SCHD tracks the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 5 years, KNG returned 5.39%/yr vs 8.71%/yr for SCHD. Their correlation of 0.89 suggests significant overlap in exposure. KNG charges 0.75%/yr vs 0.06%/yr for SCHD.

Performance

KNG vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) 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, KNG achieves a 4.84% return, which is significantly lower than SCHD's 17.72% return.

KNG

• 1D: 0.65%
• 1M: 2.07%
• YTD: 4.84%
• 6M: 4.41%
• 1Y: 10.46%
• 3Y*: 7.42%
• 5Y*: 5.39%
• 10Y*: —

SCHD

• 1D: 0.41%
• 1M: -2.47%
• YTD: 17.72%
• 6M: 17.25%
• 1Y: 24.56%
• 3Y*: 14.60%
• 5Y*: 8.71%
• 10Y*: 12.72%

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

KNG vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
KNG FT Vest S&P 500 Dividend Aristocrats Target Income ETF	4.84%	6.63%	5.99%	7.48%	-7.03%	24.78%	7.21%	26.64%	-1.56%
SCHD Schwab U.S. Dividend Equity ETF	17.72%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-1.37%

Correlation

The correlation between KNG and SCHD is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Mar 27, 2018	0.89

The correlation between KNG and SCHD has been stable across timeframes, ranging from 0.80 to 0.90 - a consistent structural relationship.

KNG vs. SCHD - Sectors Allocation Comparison

Sectors	KNG	SCHD
Consumer Defensive	23.6%	18.5%
Industrials	20.2%	7.4%
Financial Services	12.8%	9.1%
Healthcare	10.2%	18.4%
Basic Materials	10.2%	1.2%
Utilities	5.7%	0.0%
Consumer Cyclical	5.3%	6.7%
Technology	4.6%	19.4%
Real Estate	4.6%	-
Energy	2.9%	14.6%
Communication Services	-	6.0%

Return for Risk

KNG vs. SCHD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

KNG

KNG Risk / Return Rank: 27
KNG Sharpe Ratio Rank: 29
KNG Sortino Ratio Rank: 30
KNG Omega Ratio Rank: 26
KNG Calmar Ratio Rank: 26
KNG Martin Ratio Rank: 24

SCHD

SCHD Risk / Return Rank: 77
SCHD Sharpe Ratio Rank: 72
SCHD Sortino Ratio Rank: 80
SCHD Omega Ratio Rank: 70
SCHD Calmar Ratio Rank: 90
SCHD Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

KNG vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) 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.

	KNG	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.01	2.23	-1.21
Sortino ratio: Return per unit of downside risk	1.55	3.40	-1.85
Omega ratio: Gain probability vs. loss probability	1.18	1.40	-0.22
Calmar ratio: Return relative to maximum drawdown	1.22	5.35	-4.13
Martin ratio: Return relative to average drawdown	3.07	12.94	-9.87

KNG vs. SCHD - Sharpe Ratio Comparison

The current KNG Sharpe Ratio is 1.01, which is lower than the SCHD Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of KNG 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

KNG vs. SCHD - Drawdown Comparison

The maximum KNG drawdown since its inception was -35.12%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for KNG and SCHD.

Drawdown Indicators

	KNG	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-35.12%	-33.37%	-1.75%
Max Drawdown (1Y) Largest decline over 1 year	-8.61%	-4.61%	-4.00%
Max Drawdown (3Y) Largest decline over 3 years	-14.24%	-16.13%	+1.89%
Max Drawdown (5Y) Largest decline over 5 years	-18.20%	-16.85%	-1.35%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.37%	—
Current Drawdown Current decline from peak	-3.46%	-2.47%	-0.99%
Average Drawdown Average peak-to-trough decline	-4.13%	-3.31%	-0.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.42%	1.90%	+1.52%

Volatility

KNG vs. SCHD - Volatility Comparison

The current volatility for FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) is 3.00%, while Schwab U.S. Dividend Equity ETF (SCHD) has a volatility of 3.58%. This indicates that KNG experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KNG	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.00%	3.58%	-0.58%
Volatility (6M) Calculated over the trailing 6-month period	7.59%	7.73%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	10.41%	11.07%	-0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.58%	14.36%	-0.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.15%	16.71%	+0.44%

KNG vs. SCHD - Expense Ratio Comparison

KNG has a 0.75% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

KNG vs. SCHD - Dividend Comparison

KNG's dividend yield for the trailing twelve months is around 8.45%, more than SCHD's 3.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KNG FT Vest S&P 500 Dividend Aristocrats Target Income ETF	8.45%	8.61%	9.08%	5.91%	4.00%	3.45%	3.62%	4.09%	3.46%	0.00%	0.00%	0.00%
SCHD Schwab U.S. Dividend Equity ETF	3.30%	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 KNG and SCHD in my portfolio?

KNG and SCHD have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KNG or SCHD?

SCHD has higher volatility (3.58%) compared to KNG (3.00%). In terms of maximum drawdown, KNG dropped -35.12% vs SCHD's -33.37%.

Which ETF is better, KNG or SCHD?

On 5-year performance, SCHD leads with 8.71% vs 5.39% for KNG. On fees, SCHD is cheaper at 0.06% per year. On volatility, KNG has been the lower-risk option at 3.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KNG or SCHD?

Over the 5-year period, SCHD has performed better with a 8.71% return vs 5.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KNG or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.75% for KNG.

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

KNG has the higher dividend yield at 8.45%, compared with 3.30% for SCHD.

What is the main difference between KNG and SCHD?

KNG tracks Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series, 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: 0.75% for KNG and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.23 vs 1.01), 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.