FMCE 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

MetricFMCESCHDWinner
Expense Ratio0.72%0.06%
AUM$67M$103.7B
Dividend Yield2.82%3.31%
Holdings30104
YTD Return+11.09%+25.62%
1Y Return+16.00%+32.62%
3Y Return (annualized)-+15.58%
5Y Return (annualized)-+9.63%
Volatility (annualized)11.7%13.6%
Max Drawdown-11.7%-33.4%
Fund FamilyFirst ManhattanCharles Schwab Asset Management
CategoryEquityEquity
InceptionNov 8, 2024Oct 20, 2011

FMCE vs SCHD Performance

FM Compounders Equity ETF (FMCE) is a ETF from First Manhattan and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FMCE returned +16.00% while SCHD returned +32.62%. Year to date, FMCE is up 11.09% versus a gain of 25.62% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 11.7% for FMCE. 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 -11.7% for FMCE 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FMCE charges 0.72% per year while SCHD charges 0.06%. On a $10,000 position that is $72 vs $6 annually, a gap of $66 per year that compounds over a long holding period. On income, FMCE currently yields 2.82% against 3.31% for SCHD.

Holdings Overlap

2.7%overlap

FMCE and SCHD share 1 holdings out of 130 unique holdings combined, representing a 2.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FMCEWeight in SCHDDifference
UNH2.67%4.54%1.87%

Frequently Asked Questions

Which is cheaper, FMCE or SCHD?

FMCE has an expense ratio of 0.72% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $66 per year of difference.

Which performed better, FMCE or SCHD?

Over the past year FMCE returned +16.00% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), FMCE annualized +11.10% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, FMCE or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 11.7% for FMCE. Worst drawdown: FMCE -11.7% vs SCHD -33.4%.

Should I hold both FMCE and SCHD?

FMCE and SCHD have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FMCE and SCHD?

FMCE and SCHD share 1 common holdings with a 2.7% weight overlap. Combined, they hold 130 unique securities.

Which pays a higher dividend, FMCE or SCHD?

FMCE yields 2.82% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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