FDV vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricFDVSCHDWinner
Expense Ratio0.50%0.06%
AUM$850M$103.7B
Dividend Yield2.94%3.31%
Holdings52104
YTD Return+17.66%+24.26%
1Y Return+22.40%+31.38%
3Y Return (annualized)+14.64%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)12.2%13.6%
Max Drawdown-16.7%-33.4%
Fund FamilyFederated Hermes FundsCharles Schwab Asset Management
CategoryEquityEquity
InceptionNov 15, 2022Oct 20, 2011

FDV vs SCHD Performance

Federated Hermes US Strategic Dividend ETF (FDV) is a ETF from Federated Hermes Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FDV returned +22.40% while SCHD returned +31.38%. Year to date, FDV is up 17.66% versus a gain of 24.26% for SCHD.

Over three years, FDV compounded at +14.64% per year against +15.08% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +11.38%. 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 12.2% for FDV. 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 -16.7% for FDV 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

FDV charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, FDV currently yields 2.94% against 3.31% for SCHD.

Holdings Overlap

24.9%overlap

FDV and SCHD share 18 holdings out of 132 unique holdings combined, representing a 24.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FDVWeight in SCHDDifference
CVX3.50%3.95%0.45%
AMGN2.93%4.25%1.32%
TXN2.76%3.70%0.94%
PEPProProPro
VZProProPro
KOProProPro
MRKProProPro
COPProProPro
PAYXProProPro
MOProProPro
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Frequently Asked Questions

Which is cheaper, FDV or SCHD?

FDV has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.

Which performed better, FDV or SCHD?

Over the past year FDV returned +22.40% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), FDV annualized +11.38% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, FDV or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 12.2% for FDV. Worst drawdown: FDV -16.7% vs SCHD -33.4%.

Should I hold both FDV and SCHD?

FDV and SCHD have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between FDV and SCHD?

FDV and SCHD share 18 common holdings with a 24.9% weight overlap. Combined, they hold 132 unique securities.

Which pays a higher dividend, FDV or SCHD?

FDV yields 2.94% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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