TDIV vs. SCHD

Last updated Jun 27, 2026

TDIV (First Trust NASDAQ Technology Dividend Index Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - TDIV is a Technology Equities fund tracking the NASDAQ Technology Dividend 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, TDIV returned 18.40%/yr vs 12.84%/yr for SCHD. A 0.72 correlation means they provide meaningful diversification when combined. TDIV charges 0.50%/yr vs 0.06%/yr for SCHD.

Performance

TDIV vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Technology Dividend Index Fund (TDIV) 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, TDIV achieves a 16.59% return, which is significantly lower than SCHD's 18.92% return. Over the past 10 years, TDIV has outperformed SCHD with an annualized return of 18.40%, while SCHD has yielded a comparatively lower 12.84% annualized return.

TDIV

• 1D: -1.49%
• 1M: -3.82%
• YTD: 16.59%
• 6M: 14.89%
• 1Y: 27.46%
• 3Y*: 26.67%
• 5Y*: 16.76%
• 10Y*: 18.40%

SCHD

• 1D: 0.41%
• 1M: -0.63%
• YTD: 18.92%
• 6M: 18.01%
• 1Y: 26.07%
• 3Y*: 14.47%
• 5Y*: 8.79%
• 10Y*: 12.84%

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

TDIV vs. SCHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TDIV First Trust NASDAQ Technology Dividend Index Fund	16.59%	25.27%	24.43%	36.71%	-22.13%	29.49%	17.55%	33.27%	-3.18%	21.95%
SCHD Schwab U.S. Dividend Equity ETF	18.92%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between TDIV and SCHD is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Aug 14, 2012	0.72

Over the past year, the correlation between TDIV and SCHD has dropped to 0.25 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

TDIV vs. SCHD - Sectors Allocation Comparison

Sectors	TDIV	SCHD
Technology	87.1%	19.4%
Communication Services	11.6%	6.0%
Industrials	1.3%	7.4%
Basic Materials	-	1.2%
Consumer Cyclical	-	6.7%
Consumer Defensive	-	18.5%
Energy	-	14.6%
Financial Services	-	9.1%
Healthcare	-	18.4%
Real Estate	-	-
Utilities	-	0.0%

Return for Risk

TDIV vs. SCHD — Risk / Return Rank

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

TDIV

TDIV Risk / Return Rank: 44
TDIV Sharpe Ratio Rank: 43
TDIV Sortino Ratio Rank: 40
TDIV Omega Ratio Rank: 41
TDIV Calmar Ratio Rank: 51
TDIV Martin Ratio Rank: 44

SCHD

SCHD Risk / Return Rank: 86
SCHD Sharpe Ratio Rank: 84
SCHD Sortino Ratio Rank: 90
SCHD Omega Ratio Rank: 82
SCHD Calmar Ratio Rank: 93
SCHD Martin Ratio Rank: 80

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.

TDIV vs. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Technology Dividend Index Fund (TDIV) 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.

	TDIV	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	1.38	2.38	-0.99
Sortino ratio: Return per unit of downside risk	1.91	3.63	-1.71
Omega ratio: Gain probability vs. loss probability	1.25	1.43	-0.18
Calmar ratio: Return relative to maximum drawdown	2.24	5.67	-3.43
Martin ratio: Return relative to average drawdown	6.59	13.65	-7.05

TDIV vs. SCHD - Sharpe Ratio Comparison

The current TDIV Sharpe Ratio is 1.38, which is lower than the SCHD Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of TDIV 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

TDIV vs. SCHD - Drawdown Comparison

The maximum TDIV drawdown since its inception was -31.97%, roughly equal to the maximum SCHD drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for TDIV and SCHD.

Drawdown Indicators

	TDIV	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-31.97%	-33.37%	+1.40%
Max Drawdown (1Y) Largest decline over 1 year	-12.31%	-4.61%	-7.70%
Max Drawdown (3Y) Largest decline over 3 years	-23.00%	-16.13%	-6.87%
Max Drawdown (5Y) Largest decline over 5 years	-31.97%	-16.85%	-15.12%
Max Drawdown (10Y) Largest decline over 10 years	-31.97%	-33.37%	+1.40%
Current Drawdown Current decline from peak	-12.31%	-1.48%	-10.83%
Average Drawdown Average peak-to-trough decline	-4.86%	-3.31%	-1.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.18%	1.92%	+2.26%

Volatility

TDIV vs. SCHD - Volatility Comparison

First Trust NASDAQ Technology Dividend Index Fund (TDIV) has a higher volatility of 10.16% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 3.14%. This indicates that TDIV'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

	TDIV	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.16%	3.14%	+7.02%
Volatility (6M) Calculated over the trailing 6-month period	15.76%	7.73%	+8.03%
Volatility (1Y) Calculated over the trailing 1-year period	19.94%	11.04%	+8.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.97%	14.35%	+6.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.94%	16.70%	+4.24%

TDIV vs. SCHD - Expense Ratio Comparison

TDIV has a 0.50% expense ratio, which is higher than SCHD's 0.06% expense ratio.

Dividends

TDIV vs. SCHD - Dividend Comparison

TDIV's dividend yield for the trailing twelve months is around 1.35%, less than SCHD's 3.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.27%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
TDIV First Trust NASDAQ Technology Dividend Index Fund	1.35%	1.40%	1.59%	1.74%	2.51%	1.76%	2.07%	2.27%	2.97%	2.27%	2.45%	2.52%

Frequently Asked Questions

Can I hold both TDIV and SCHD in my portfolio?

TDIV and SCHD have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TDIV or SCHD?

TDIV has higher volatility (10.16%) compared to SCHD (3.14%). In terms of maximum drawdown, TDIV dropped -31.97% vs SCHD's -33.37%.

Which ETF is better, TDIV or SCHD?

On 10-year performance, TDIV leads with 18.40% vs 12.84% for SCHD. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 3.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TDIV or SCHD?

Over the 10-year period, TDIV has performed better with a 18.40% return vs 12.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TDIV or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.50% for TDIV.

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

SCHD has the higher dividend yield at 3.27%, compared with 1.35% for TDIV.

What is the main difference between TDIV and SCHD?

TDIV is categorized as Technology Equities, while SCHD is Dividend. TDIV tracks NASDAQ Technology Dividend 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: 0.50% for TDIV and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.38 vs 1.38), 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.