FEDM vs SCHD
Northern Trust ESG & Climate Developed Markets ex-US Core ETF vs Schwab US Dividend Equity ETF
Which is better, FEDM or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. FEDM led over 3Y, SCHD over 1Y, 5Y and the full window. FEDM is less concentrated, with 17.0% 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 | FEDM | SCHD |
|---|---|---|
| Expense Ratio | 0.12% | 0.06%Best |
| AUM | $85M | $112.2B |
| Dividend Yield | 2.87% | 3.13% |
| Holdings | 265 | 103 |
| YTD Return | +13.61% | +28.59%Best |
| 1Y Return | +23.48% | +31.77%Best |
| 3Y Return (annualized) | +17.55%Best | +16.70% |
| 5Y Return (annualized) | +8.82% | +10.09%Best |
| Volatility (annualized) | 15.6% | 14.8%Best |
| Max Drawdown | -29.4% | -16.9%Best |
| $10,000 over 5 years | $15,260 | $16,171Best |
| Top 10 Weight | 17.0%Best | 41.5% |
| Fund Family | Northern Trust Asset Management | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Sep 20, 2021 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 21, 2021 to Sep 3, 2026 (5 years).
FEDM 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 5 years both funds cover.
FEDM vs SCHD Performance
Northern Trust ESG & Climate Developed Markets ex-US Core ETF (FEDM) is an ETF from Northern Trust Asset Management and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FEDM returned +23.48% while SCHD returned +31.77%. Year to date, FEDM is up 13.61% versus a gain of 28.59% for SCHD.
Over three years, FEDM compounded at +17.55% per year against +16.70% for SCHD; over five years the annualized figures are +8.82% and +10.09% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FEDM has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 14.8% 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 -16.9% 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 0.75. 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 2.87% against 3.13% for SCHD.
Holdings Overlap
We hold position weights for 218 holdings in FEDM and 100 in SCHD, totalling 98.0% 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 218 positions we hold weights for in FEDM and 100 in SCHD, against full books of 265 and 103.
What only one of them owns
Our book lists 99 positions for SCHD that do not appear in our book for FEDM (99.9% of the fund), and 4 for FEDM that do not appear in SCHD (1.0%).
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 FEDM 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, FEDM or SCHD?
FEDM has an expense ratio of 0.12% while SCHD charges 0.06%. SCHD is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, FEDM or SCHD?
Over the past year FEDM returned +23.48% vs +31.77% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FEDM or SCHD?
FEDM has been the more volatile fund at 15.6% annualized versus 14.8% for SCHD. Worst drawdown: FEDM -29.4% vs SCHD -16.9%.
Should I hold both FEDM and SCHD?
FEDM and SCHD have a monthly-return correlation of 0.75, 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, FEDM or SCHD?
FEDM yields 2.87% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FEDM?
SCHD has a lower expense ratio. FEDM led over 3Y, SCHD over 1Y, 5Y and the full window. FEDM is less concentrated, with 17.0% 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.