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ETF Comparison

FVD vs SCHD: Which Is the Better Pick in 2026?

A head-to-head comparison of First Trust Value Line Dividend Index Fund and Schwab U.S. Dividend Equity ETF covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • FVDInvestors who want a quality-dividend tilt rather than the whole market.
  • SCHDInvestors who want higher current income (3.28% vs 2.18% for FVD).

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

FVD has lagged SCHD over the trailing twelve months, posting a 4.57% total return against 24.24%. The lead holds up over 10 years too: SCHD has compounded at 12.52% a year, against 8.17% for FVD. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Oct 2011Volatility Sharpe Sortino Max drawdown
FVD3.29%4.57%11.02%5.79%8.17%10.37%11.4%0.530.77-12.0%
SCHD20.19%24.24%15.79%9.12%12.52%13.08%13.2%0.781.13-16.1%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Oct 2011” measures every fund from October 20, 2011 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricFVDSCHD
Full nameFirst Trust Value Line Dividend Index FundSchwab U.S. Dividend Equity ETF
IssuerFirst TrustSchwab
Underlying indexFirst Trust Value Line Dividend IndexDow Jones U.S. Dividend 100 Index
Last Close$46.91 as of September 30, 2026$32.53 as of September 30, 2026
Distribution rate2.18%3.28%
Trailing 12-month yield2.39%3.24%
Distribution Safety Score™ 97100
Safety-Adjusted Yield 2.11%3.28%
Expense ratio0.62%0.06%
AUM$7.67B$110B
Distribution frequencyQuarterlyQuarterly
Objective—Seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.
Asset classEquityEquity
Inception date08/19/200310/20/2011
Beta0.450.56
Last dividend$0.2562 payable today$0.2665
Ex-dividend date09/24/202609/23/2026

Bottom lineChoose FVD if you want a quality-dividend tilt rather than the whole market. Choose SCHD if you want higher current income (3.28% vs 2.18% for FVD).

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

First Trust
ETFs325
Total AUM$288B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

First Trust is known for offering a diverse lineup of actively and passively managed ETFs across multiple investment styles and asset classes. Their fund families span income-focused strategies including dividend and covered call approaches, as well as thematic, factor-based, alternatives, and sector-specific offerings that appeal to different investor objectives. The issuer provides breadth across allocation, bond, buffer, commodities, and municipal fund categories, making them a comprehensive provider serving various portfolio construction and income-generation needs.

See our curated list of related YouTube videos on FVD.

See all First Trust ETFs
Schwab
ETFs33
Total AUM$612B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.

See our curated list of related YouTube videos on SCHD.

See all Schwab ETFs

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Quick verdict

FVD (First Trust Value Line Dividend Index Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

SCHD offers the higher yield at 3.28% vs 2.18% for FVD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SCHD is cheaper with an expense ratio of 0.06% compared to 0.62%.

They have different reference exposures: FVD is linked to First Trust Value Line Dividend Index while SCHD is linked to Dow Jones U.S. Dividend 100 Index, which means their performance drivers differ.

SCHD is the larger fund by assets ($110B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, FVD would generate roughly $54.50 cash per distribution, while SCHD would produce $82.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

FVD yield2.18%
SCHD yield3.28%
Cash diff on $10K$27.50

Cost & efficiency

Over 10 years on $10,000, FVD would cost approximately $620 in fees vs $60 for SCHD (simplified, not compounded). The $560.00 difference may be offset by yield or performance.

FVD ER0.62%
SCHD ER0.06%

Strategy & risk

FVD tracks First Trust Value Line Dividend Index with a dividend approach, while SCHD tracks Dow Jones U.S. Dividend 100 Index. Beta is 0.45 for FVD and 0.56 for SCHD, making FVD the less volatile of the two by this measure.

FVD beta0.45
SCHD beta0.56

Fund details

FVD is managed by First Trust (launched 08/19/2003) with $7.67B in assets. SCHD is managed by Schwab (launched 10/20/2011) with $110B in assets.

FVD AUM$7.67B
SCHD AUM$110B
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Frequently asked questions

What is the current distribution rate for FVD and SCHD?

FVD currently distributes 2.18% and SCHD 3.28%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is FVD or SCHD better for dividend income?

It depends on your goals. SCHD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between FVD and SCHD?

FVD (First Trust Value Line Dividend Index Fund) tracks First Trust Value Line Dividend Index with a dividend approach, while SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index. They are issued by First Trust and Schwab respectively.

Can I hold both FVD and SCHD?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is FVD or SCHD safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SCHD scores 100, FVD scores 97, so SCHD's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, FVD or SCHD?

FVD has an expense ratio of 0.62% while SCHD charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in FVD vs SCHD generate?

At current rates, $10,000 in FVD would generate roughly $54.50 cash per distribution ($218.00 annually). The same in SCHD would produce about $82.00 cash per distribution ($328.00 annually).

Which has performed better historically, FVD or SCHD?

FVD has lagged SCHD over the trailing twelve months, posting a 4.57% total return against 24.24%. The lead holds up over 10 years too: SCHD has compounded at 12.52% a year, against 8.17% for FVD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

FVD vs SCHD — at a glance

Generated September 27, 2026.

Overview

FVD and SCHD are both dividend-focused equity ETFs, but they target different market segments and use different selection methodologies. Dividend 100 Index, which selects the highest-yielding large-cap stocks with consistent dividend histories and relative financial strength. The distinction matters: FVD offers lower yield but less concentrated exposure; SCHD delivers higher yield from a tighter group of mega-cap dividend payers.

How they differ

The biggest difference is asset size and fees. SCHD holds $110B in assets with an 0.06% expense ratio, versus FVD's $7.67B and 0.62% expense ratio—making SCHD vastly larger and far cheaper to own.

Second: yield and capitalization. SCHD offers a 3.28% distribution rate from large-cap dividend champions, while FVD yields 2.18% by casting a wider net across mid-cap value names. SCHD's higher yield comes with more concentration—it holds the top 100 dividend-payers; FVD's broader mid-cap mandate includes smaller, less-obvious holdings.

Third: volatility and market sensitivity. FVD carries a 0.45 beta, suggesting less price swing than the broader market; SCHD's 0.56 beta sits higher, reflecting large-cap growth influence in its component stocks despite their dividend focus.

Who each is best for

  • FVD: Fits investors seeking dividend income from undervalued mid-cap companies and willing to accept lower yield in exchange for exposure outside the mega-cap dividend aristocrat universe.
  • SCHD: Fits investors prioritizing high current yield from established large-cap dividend payers and comfortable with minimal fee drag given the fund's massive asset base.

Key risks to know

  • Dividend sustainability at different scales. SCHD's concentration in the top 100 U.S. dividend-payers means a cut or freeze by one large holding carries outsized portfolio impact; FVD's mid-cap dispersion reduces single-name risk but includes smaller companies with less predictable dividend histories.
  • Yield-compression sensitivity. SCHD's 3.28% yield leaves limited room for dividend growth to surprise on the upside; falling interest rates or rising equity prices could compress payouts relative to NAV, while FVD's lower yield provides more cushion.
  • Value-trap exposure in FVD. Mid-cap value stocks can remain cheap for good reasons—declining competitive positions or structural headwinds.
  • Sector and style concentration. Both funds will naturally overweight sectors with high dividend yields (financials, utilities, energy), but SCHD's focus on the 100 largest payers exaggerates this tilt relative to FVD's broader mid-cap exposure.

Bottom line

If you prioritize current income and want the lowest possible fees, SCHD's combination of 3.28% yield and 0.06% expenses is hard to match. If you value access to mid-cap value stocks with less concentration in mega-cap names, FVD offers different diversification at the cost of lower income and higher fees. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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These comparisons follow the Dividend Vision methodology.