FDRR vs SCHD
Fidelity Dividend ETF for Rising Rates vs Schwab US Dividend Equity ETF
Which is better, FDRR or SCHD?
Each has led over a different period.
SCHD has a lower expense ratio. FDRR led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 42.6%.
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 | FDRR | SCHD |
|---|---|---|
| Expense Ratio | 0.15% | 0.06%Best |
| AUM | $737M | $112.1B |
| Dividend Yield | 2.02% | 3.00% |
| Holdings | 116 | 103 |
| YTD Return | +13.33% | +21.00%Best |
| 1Y Return | +19.67% | +25.08%Best |
| 3Y Return (annualized) | +22.81%Best | +15.72% |
| 5Y Return (annualized) | +13.25%Best | +9.37% |
| Volatility (annualized) | 15.2%Best | 15.4% |
| Max Drawdown | -37.6% | -33.4%Best |
| $10,000 over 5 years | $18,629Best | $15,649 |
| Top 10 Weight | 42.6% | 41.8%Best |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Sep 12, 2016 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 15, 2016 to Sep 28, 2026 (10 years).
FDRR 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 10 years both funds cover.
FDRR vs SCHD Performance
Fidelity Dividend ETF for Rising Rates (FDRR) 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 FDRR returned +19.67% while SCHD returned +25.08%. Year to date, FDRR is up 13.33% versus a gain of 21.00% for SCHD.
Over three years, FDRR compounded at +22.81% per year against +15.72% for SCHD; over five years the annualized figures are +13.25% and +9.37% respectively. Across the full 10-year window we track, FDRR has the edge at +12.09% annualized vs +11.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.2% for FDRR. 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 -37.6% for FDRR 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDRR charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, FDRR currently yields 2.02% against 3.00% for SCHD.
Holdings Overlap
16.6% of FDRR's money is in holdings SCHD also owns. 59.7% of SCHD's money is in holdings FDRR also owns.
The two portfolios partly overlap.
24 positions in common, counted across the 107 positions we hold weights for in FDRR and 100 in SCHD, against full books of 116 and 103.
What only one of them owns
Our book lists 75 positions for SCHD that do not appear in our book for FDRR (40.2% of the fund), and 74 for FDRR that do not appear in SCHD (77.4%).
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.
Top Shared Holdings
| Stock | Weight in FDRR | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 1.31% | 4.77% | 3.46% |
| UNHUnitedhealth Group Incorporated | 1.41% | 3.82% | 2.41% |
| HDHome Depot Inc/The | 1.07% | 3.88% | 2.81% |
| CVXChevron Corp | 0.75% | 4.02% | 3.27% |
| PGProcter & Gamble Company | 0.84% | 3.83% | 2.99% |
| COPConocophillips Common Stock USD 0.01 | 0.44% | 3.94% | 3.50% |
| VZVerizon Communic | 0.37% | 3.97% | 3.60% |
| BMYBristol-Myers Squibb Co. | 0.92% | 3.33% | 2.41% |
| PEPPepsico Inc. | 0.59% | 3.64% | 3.05% |
| ACNAccenture Plc | 0.88% | 2.84% | 1.96% |
59.7% of SCHD is already inside FDRR.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDRR or SCHD?
FDRR has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, FDRR or SCHD?
Over the past year FDRR returned +19.67% vs +25.08% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), FDRR annualized +12.09% vs +11.04% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDRR or SCHD?
SCHD has been the more volatile fund at 15.4% annualized versus 15.2% for FDRR. Worst drawdown: FDRR -37.6% vs SCHD -33.4%.
Should I hold both FDRR and SCHD?
FDRR and SCHD have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FDRR and SCHD?
59.7% of SCHD's money is in holdings FDRR also owns. 59.7% of SCHD's is in holdings FDRR also owns. They hold 24 positions in common, counted across the 107 positions we hold weights for in FDRR and 100 in SCHD.
Which pays a higher dividend, FDRR or SCHD?
FDRR yields 2.02% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FDRR?
SCHD has a lower expense ratio. FDRR led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 42.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.