FESM vs SCHD
Fidelity Enhanced Small Cap Core ETF vs Schwab US Dividend Equity ETF
Which is better, FESM or SCHD?
Small Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. FESM led over the full window, SCHD over 1Y. FESM is less concentrated, with 6.7% of the fund in its ten largest positions against 41.8%.
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 | FESM | SCHD |
|---|---|---|
| Expense Ratio | 0.28% | 0.06%Best |
| AUM | $6.0B | $112.1B |
| Dividend Yield | 0.72% | 3.00% |
| Holdings | 789 | 103 |
| YTD Return | +21.08% | +23.60%Best |
| 1Y Return | +24.93% | +28.29%Best |
| 3Y Return (annualized) | - | +16.25% |
| 5Y Return (annualized) | - | +10.25% |
| Volatility (annualized) | 19.7% | 13.1%Best |
| Max Drawdown | -26.9% | -16.1%Best |
| $10,000 over 2.8 years | $18,599Best | $15,573 |
| Top 10 Weight | 6.7%Best | 41.8% |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Nov 20, 2023 | Oct 20, 2011 |
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Nov 20, 2023 to Sep 21, 2026 (2.8 years).
FESM 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 2.8 years both funds cover.
FESM vs SCHD Performance
Fidelity Enhanced Small Cap Core ETF (FESM) 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 FESM returned +24.93% while SCHD returned +28.29%. Year to date, FESM is up 21.08% versus a gain of 23.60% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 13.1% 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 -26.9% for FESM and -16.1% 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 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FESM charges 0.28% per year while SCHD charges 0.06%. On a $10,000 position that is $28 vs $6 annually, a gap of $22 per year that compounds over a long holding period. On income, FESM currently yields 0.72% against 3.00% for SCHD.
Holdings Overlap
1.8% of FESM's money is in holdings SCHD also owns. 0.8% of SCHD's money is in holdings FESM also owns.
FESM and SCHD share little of their money.
16 positions in common, counted across the 845 positions we hold weights for in FESM and 100 in SCHD, against full books of 789 and 103.
What only one of them owns
Our book lists 84 positions for SCHD that do not appear in our book for FESM (99.2% of the fund), and 693 for FESM that do not appear in SCHD (92.4%).
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 FESM | Weight in SCHD | Difference |
|---|---|---|---|
| FHIFederated Investors Inc. | 0.43% | 0.11% | 0.32% |
| MURMurphy Oil Corp | 0.16% | 0.12% | 0.04% |
| CNSCohen & Steers Inc | 0.20% | 0.05% | 0.15% |
| LKFNLakeland Financial Corp. | 0.21% | 0.04% | 0.17% |
| CVBFCvb Financial Corp. | 0.12% | 0.09% | 0.03% |
| CPFCentral Pacific Financial Corp | 0.16% | 0.02% | 0.14% |
| OFG:PROfg Bancorp Common Stock | 0.11% | 0.05% | 0.06% |
| FLOFlowers Foods Inc | 0.11% | 0.04% | 0.07% |
| NSPInsperity Inc | 0.09% | 0.05% | 0.04% |
| ETDEthan Allen Interiors Inc | 0.12% | 0.01% | 0.11% |
You are not choosing between two funds in isolation.
Whichever of FESM 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, FESM or SCHD?
FESM has an expense ratio of 0.28% while SCHD charges 0.06%. SCHD is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, FESM or SCHD?
Over the past year FESM returned +24.93% vs +28.29% 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, FESM or SCHD?
FESM has been the more volatile fund at 19.7% annualized versus 13.1% for SCHD. Worst drawdown: FESM -26.9% vs SCHD -16.1%.
Should I hold both FESM and SCHD?
FESM and SCHD have a monthly-return correlation of 0.61, 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 FESM and SCHD?
1.8% of FESM's money is in holdings SCHD also owns. 0.8% of SCHD's is in holdings FESM also owns. They hold 16 positions in common, counted across the 845 positions we hold weights for in FESM and 100 in SCHD.
Which pays a higher dividend, FESM or SCHD?
FESM yields 0.72% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FESM?
SCHD has a lower expense ratio. FESM led over the full window, SCHD over 1Y. FESM is less concentrated, with 6.7% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.