FNCL vs SCHD
Fidelity MSCI Financials Index ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FNCL offers more diversification with 389 holdings.
Side-by-Side Comparison
| Metric | FNCL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.06% | |
| AUM | $2.4B | $108.7B | |
| Dividend Yield | 1.56% | 3.13% | |
| Holdings | 389 | 104 | |
| YTD Return | +7.34% | +28.70% | |
| 1Y Return | +11.20% | +31.07% | |
| 3Y Return (annualized) | +22.18% | +16.88% | |
| 5Y Return (annualized) | +10.59% | +10.20% | |
| Volatility (annualized) | 18.6% | 13.7% | |
| Max Drawdown | -45.0% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2013 | Oct 20, 2011 |
FNCL vs SCHD Performance
Fidelity MSCI Financials Index ETF (FNCL) is a ETF from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FNCL returned +11.20% while SCHD returned +31.07%. Year to date, FNCL is up 7.34% versus a gain of 28.70% for SCHD.
Over three years, FNCL compounded at +22.18% per year against +16.88% for SCHD; over five years the annualized figures are +10.59% and +10.20% respectively. Across the full 13-year window we track, SCHD has the edge at +11.62% annualized vs +10.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FNCL has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 13.7% 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 -45.0% for FNCL 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FNCL charges 0.08% per year while SCHD charges 0.06%. On a $10,000 position that is $8 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, FNCL currently yields 1.56% against 3.13% for SCHD.
Holdings Overlap
FNCL and SCHD share 36 holdings out of 436 unique holdings combined, representing a 4.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FNCL or SCHD?
FNCL has an expense ratio of 0.08% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, FNCL or SCHD?
Over the past year FNCL returned +11.20% vs +31.07% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (13 years), FNCL annualized +10.71% vs +11.62% for SCHD. Past performance does not guarantee future results.
Which is riskier, FNCL or SCHD?
FNCL has been the more volatile fund at 18.6% annualized versus 13.7% for SCHD. Worst drawdown: FNCL -45.0% vs SCHD -33.4%.
Should I hold both FNCL and SCHD?
FNCL and SCHD have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FNCL and SCHD?
FNCL and SCHD share 36 common holdings with a 4.3% weight overlap. Combined, they hold 436 unique securities.
Which pays a higher dividend, FNCL or SCHD?
FNCL yields 1.56% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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