FPFD vs SCHD
Fidelity Preferred Securities & Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FPFD offers more diversification with 333 holdings.
Side-by-Side Comparison
| Metric | FPFD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.06% | |
| AUM | $81M | $108.7B | |
| Dividend Yield | 5.81% | 3.13% | |
| Holdings | 333 | 104 | |
| YTD Return | -3.04% | +26.54% | |
| 1Y Return | -1.09% | +30.90% | |
| 3Y Return (annualized) | +5.71% | +16.29% | |
| 5Y Return (annualized) | +0.63% | +9.65% | |
| Volatility (annualized) | 8.4% | 13.6% | |
| Max Drawdown | -20.8% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 15, 2021 | Oct 20, 2011 |
FPFD vs SCHD Performance
Fidelity Preferred Securities & Income ETF (FPFD) 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 FPFD returned -1.09% while SCHD returned +30.90%. Year to date, FPFD is down 3.04% versus a gain of 26.54% for SCHD.
Over three years, FPFD compounded at +5.71% per year against +16.29% for SCHD; over five years the annualized figures are +0.63% and +9.65% respectively. Across the full 5-year window we track, SCHD has the edge at +11.51% annualized vs +0.91%. 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 8.4% for FPFD. 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 -20.8% for FPFD 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPFD charges 0.59% per year while SCHD charges 0.06%. On a $10,000 position that is $59 vs $6 annually, a gap of $53 per year that compounds over a long holding period. On income, FPFD currently yields 5.81% against 3.13% for SCHD.
Holdings Overlap
FPFD and SCHD share 3 holdings out of 176 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FPFD or SCHD?
FPFD has an expense ratio of 0.59% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, FPFD or SCHD?
Over the past year FPFD returned -1.09% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FPFD annualized +0.91% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FPFD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.4% for FPFD. Worst drawdown: FPFD -20.8% vs SCHD -33.4%.
Should I hold both FPFD and SCHD?
FPFD and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPFD and SCHD?
FPFD and SCHD share 3 common holdings with a 0.3% weight overlap. Combined, they hold 176 unique securities.
Which pays a higher dividend, FPFD or SCHD?
FPFD yields 5.81% while SCHD yields 3.13%, so FPFD currently pays the higher dividend yield.
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