FDHY vs SCHD
Fidelity Enhanced High Yield ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | FDHY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $536M | $103.7B | |
| Dividend Yield | 7.10% | 3.31% | |
| Holdings | 302 | 104 | |
| YTD Return | +3.25% | +25.33% | |
| 1Y Return | +6.88% | +32.31% | |
| 3Y Return (annualized) | +8.69% | +15.40% | |
| 5Y Return (annualized) | +3.96% | +9.70% | |
| Volatility (annualized) | 8.0% | 13.6% | |
| Max Drawdown | -20.3% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 12, 2018 | Oct 20, 2011 |
FDHY vs SCHD Performance
Fidelity Enhanced High Yield ETF (FDHY) is a ETF from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FDHY returned +6.88% while SCHD returned +32.31%. Year to date, FDHY is up 3.25% versus a gain of 25.33% for SCHD.
Over three years, FDHY compounded at +8.69% per year against +15.40% for SCHD; over five years the annualized figures are +3.96% and +9.70% respectively. Across the full 8-year window we track, SCHD has the edge at +11.45% annualized vs +4.15%. 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 8.0% for FDHY. 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 -20.3% for FDHY 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDHY charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, FDHY currently yields 7.10% against 3.31% for SCHD.
Holdings Overlap
FDHY and SCHD share 0 holdings out of 104 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, FDHY or SCHD?
FDHY has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, FDHY or SCHD?
Over the past year FDHY returned +6.88% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), FDHY annualized +4.15% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, FDHY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.0% for FDHY. Worst drawdown: FDHY -20.3% vs SCHD -33.4%.
Should I hold both FDHY and SCHD?
FDHY and SCHD have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDHY and SCHD?
FDHY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, FDHY or SCHD?
FDHY yields 7.10% while SCHD yields 3.31%, so FDHY currently pays the higher dividend yield.
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