FDEM vs SCHD
Fidelity Emerging Markets Multifactor ETF vs Schwab US Dividend Equity ETF
Which is better, FDEM or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. FDEM led over 3Y, SCHD over 1Y, 5Y and the full window. FDEM is less concentrated, with 38.9% of the fund in its ten largest positions against 41.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FDEM | SCHD |
|---|---|---|
| Expense Ratio | 0.25% | 0.06%Best |
| AUM | $581M | $112.2B |
| Dividend Yield | 3.00% | 3.13% |
| Holdings | 239 | 103 |
| YTD Return | +16.97% | +27.56%Best |
| 1Y Return | +28.82% | +30.29%Best |
| 3Y Return (annualized) | +20.84%Best | +16.37% |
| 5Y Return (annualized) | +9.68% | +10.23%Best |
| Volatility (annualized) | 15.6%Best | 16.3% |
| Max Drawdown | -33.6% | -33.4%Best |
| $10,000 over 5 years | $15,872 | $16,274Best |
| Top 10 Weight | 38.9%Best | 41.5% |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Feb 26, 2019 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Feb 28, 2019 to Sep 4, 2026 (7.5 years).
FDEM vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.5 years both funds cover.
FDEM vs SCHD Performance
Fidelity Emerging Markets Multifactor ETF (FDEM) is an ETF from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FDEM returned +28.82% while SCHD returned +30.29%. Year to date, FDEM is up 16.97% versus a gain of 27.56% for SCHD.
Over three years, FDEM compounded at +20.84% per year against +16.37% for SCHD; over five years the annualized figures are +9.68% and +10.23% respectively. Across the full 8-year window we track, SCHD has the edge at +12.62% annualized vs +8.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.3% compared with 15.6% for FDEM. 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 -33.6% for FDEM and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FDEM charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, FDEM currently yields 3.00% against 3.13% for SCHD.
Holdings Overlap
We hold position weights for 199 holdings in FDEM and 100 in SCHD, totalling 99.4% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 199 positions we hold weights for in FDEM and 100 in SCHD, against full books of 239 and 103.
What only one of them owns
Our book lists 98 positions for SCHD that do not appear in our book for FDEM (99.7% of the fund), and 5 for FDEM that do not appear in SCHD (2.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FDEM and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDEM or SCHD?
FDEM has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, FDEM or SCHD?
Over the past year FDEM returned +28.82% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), FDEM annualized +8.59% vs +12.62% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDEM or SCHD?
SCHD has been the more volatile fund at 16.3% annualized versus 15.6% for FDEM. Worst drawdown: FDEM -33.6% vs SCHD -33.4%.
Should I hold both FDEM and SCHD?
FDEM and SCHD have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FDEM or SCHD?
FDEM yields 3.00% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FDEM?
SCHD has a lower expense ratio. FDEM led over 3Y, SCHD over 1Y, 5Y and the full window. FDEM is less concentrated, with 38.9% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.