FEDM vs SCHD
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FEDM offers more diversification with 222 holdings.
Side-by-Side Comparison
| Metric | FEDM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.06% | |
| AUM | $78M | $103.7B | |
| Dividend Yield | 2.98% | 3.31% | |
| Holdings | 261 | 104 | |
| YTD Return | +12.85% | +24.26% | |
| 1Y Return | +24.09% | +31.38% | |
| 3Y Return (annualized) | +16.41% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 15.7% | 13.6% | |
| Max Drawdown | -29.4% | -33.4% | |
| Fund Family | Flexshares Trust | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2021 | Oct 20, 2011 |
FEDM vs SCHD Performance
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) is a ETF from Flexshares Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FEDM returned +24.09% while SCHD returned +31.38%. Year to date, FEDM is up 12.85% versus a gain of 24.26% for SCHD.
Over three years, FEDM compounded at +16.41% per year against +15.08% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +8.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEDM has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 13.6% for SCHD. 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 -29.4% for FEDM 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FEDM charges 0.12% per year while SCHD charges 0.06%. On a $10,000 position that is $12 vs $6 annually, a gap of $6 per year that compounds over a long holding period. On income, FEDM currently yields 2.98% against 3.31% for SCHD.
Holdings Overlap
FEDM and SCHD share 0 holdings out of 322 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, FEDM or SCHD?
FEDM has an expense ratio of 0.12% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, FEDM or SCHD?
Over the past year FEDM returned +24.09% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FEDM annualized +8.81% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FEDM or SCHD?
FEDM has been the more volatile fund at 15.7% annualized versus 13.6% for SCHD. Worst drawdown: FEDM -29.4% vs SCHD -33.4%.
Should I hold both FEDM and SCHD?
FEDM and SCHD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FEDM and SCHD?
FEDM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 322 unique securities.
Which pays a higher dividend, FEDM or SCHD?
FEDM yields 2.98% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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