FCSH vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FCSH offers more diversification with 143 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: FCSH

Side-by-Side Comparison

MetricFCSHSCHDWinner
Expense Ratio0.30%0.06%
AUM$65M$103.7B
Dividend Yield4.08%3.31%
Holdings175104
YTD Return+0.92%+24.26%
1Y Return+3.02%+31.38%
3Y Return (annualized)+5.07%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)3.2%13.6%
Max Drawdown-8.5%-33.4%
Fund FamilyFederated HermesCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionDec 16, 2021Oct 20, 2011

FCSH vs SCHD Performance

Federated Hermes Short Duration Corporate ETF (FCSH) is a ETF from Federated Hermes and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FCSH returned +3.02% while SCHD returned +31.38%. Year to date, FCSH is up 0.92% versus a gain of 24.26% for SCHD.

Over three years, FCSH compounded at +5.07% per year against +15.08% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +2.45%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.2% for FCSH. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -8.5% for FCSH and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FCSH charges 0.30% per year while SCHD charges 0.06%. On a $10,000 position that is $30 vs $6 annually, a gap of $24 per year that compounds over a long holding period. On income, FCSH currently yields 4.08% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

FCSH and SCHD share 0 holdings out of 243 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, FCSH or SCHD?

FCSH has an expense ratio of 0.30% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $24 per year of difference.

Which performed better, FCSH or SCHD?

Over the past year FCSH returned +3.02% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FCSH annualized +2.45% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, FCSH or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 3.2% for FCSH. Worst drawdown: FCSH -8.5% vs SCHD -33.4%.

Should I hold both FCSH and SCHD?

FCSH and SCHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FCSH and SCHD?

FCSH and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 243 unique securities.

Which pays a higher dividend, FCSH or SCHD?

FCSH yields 4.08% while SCHD yields 3.31%, so FCSH currently pays the higher dividend yield.

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