FQAL vs SCHD
FQAL vs SCHD
Fidelity Quality Factor ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FQAL offers more diversification with 125 holdings.
Side-by-Side Comparison
| Metric | FQAL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 1.17% | 3.31% | |
| Holdings | 129 | 104 | |
| YTD Return | +13.20% | +24.26% | |
| 1Y Return | +20.81% | +31.38% | |
| 3Y Return (annualized) | +19.86% | +15.08% | |
| 5Y Return (annualized) | +12.09% | +9.72% | |
| Volatility (annualized) | 15.0% | 13.6% | |
| Max Drawdown | -34.1% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Oct 20, 2011 |
FQAL vs SCHD Performance
Fidelity Quality Factor ETF (FQAL) 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 FQAL returned +20.81% while SCHD returned +31.38%. Year to date, FQAL is up 13.20% versus a gain of 24.26% for SCHD.
Over three years, FQAL compounded at +19.86% per year against +15.08% for SCHD; over five years the annualized figures are +12.09% and +9.72% respectively. Across the full 10-year window we track, FQAL has the edge at +13.89% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FQAL has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 13.6% 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 -34.1% for FQAL 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FQAL charges 0.15% per year while SCHD charges 0.06%. On a $10,000 position that is $15 vs $6 annually, a gap of $9 per year that compounds over a long holding period. On income, FQAL currently yields 1.17% against 3.31% for SCHD.
Holdings Overlap
FQAL and SCHD share 21 holdings out of 204 unique holdings combined, representing a 11.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FQAL | Weight in SCHD | Difference |
|---|---|---|---|
| HD | 1.24% | 4.16% | 2.92% |
| MRK | 0.94% | 4.32% | 3.38% |
| AMGN | 0.72% | 4.25% | 3.53% |
| PG | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| CVX | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
| COP | Pro | Pro | Pro |
| BMY | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
See all 10 holdings FQAL shares with SCHD Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FQAL or SCHD?
FQAL has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, FQAL or SCHD?
Over the past year FQAL returned +20.81% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (10 years), FQAL annualized +13.89% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FQAL or SCHD?
FQAL has been the more volatile fund at 15.0% annualized versus 13.6% for SCHD. Worst drawdown: FQAL -34.1% vs SCHD -33.4%.
Should I hold both FQAL and SCHD?
FQAL and SCHD have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and SCHD?
FQAL and SCHD share 21 common holdings with a 11.5% weight overlap. Combined, they hold 204 unique securities.
Which pays a higher dividend, FQAL or SCHD?
FQAL yields 1.17% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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