FIAX 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

MetricFIAXSCHDWinner
Expense Ratio0.97%0.06%
AUM$129M$103.7B
Dividend Yield8.16%3.31%
Holdings13104
YTD Return+1.85%+25.62%
1Y Return+4.17%+32.62%
3Y Return (annualized)+3.30%+15.58%
5Y Return (annualized)-+9.63%
Volatility (annualized)3.5%13.6%
Max Drawdown-6.3%-33.4%
Fund FamilyXFundsCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionNov 29, 2022Oct 20, 2011

FIAX vs SCHD Performance

Nicholas Fixed Income Alternative ETF (FIAX) is a ETF from XFunds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FIAX returned +4.17% while SCHD returned +32.62%. Year to date, FIAX is up 1.85% versus a gain of 25.62% for SCHD.

Over three years, FIAX compounded at +3.30% per year against +15.58% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.47% annualized vs +3.26%. 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 3.5% for FIAX. 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 -6.3% for FIAX 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FIAX charges 0.97% per year while SCHD charges 0.06%. On a $10,000 position that is $97 vs $6 annually, a gap of $91 per year that compounds over a long holding period. On income, FIAX currently yields 8.16% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

FIAX and SCHD share 0 holdings out of 104 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, FIAX or SCHD?

FIAX has an expense ratio of 0.97% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, FIAX or SCHD?

Over the past year FIAX returned +4.17% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), FIAX annualized +3.26% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, FIAX or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 3.5% for FIAX. Worst drawdown: FIAX -6.3% vs SCHD -33.4%.

Should I hold both FIAX and SCHD?

FIAX and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FIAX and SCHD?

FIAX and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, FIAX or SCHD?

FIAX yields 8.16% while SCHD yields 3.31%, so FIAX currently pays the higher dividend yield.

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