FQAL vs SCHQ
Fidelity Quality Factor ETF vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. FQAL delivered stronger 1-year returns. FQAL offers more diversification with 130 holdings.
Side-by-Side Comparison
| Metric | FQAL | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $1.4B | $803M | |
| Dividend Yield | 1.15% | 4.91% | |
| Holdings | 130 | 100 | |
| YTD Return | +12.56% | -2.72% | |
| 1Y Return | +19.37% | +0.09% | |
| 3Y Return (annualized) | +20.54% | +0.91% | |
| 5Y Return (annualized) | +11.62% | -7.20% | |
| Volatility (annualized) | 15.0% | 13.5% | |
| Max Drawdown | -34.1% | -46.7% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Sep 12, 2016 | Oct 10, 2019 |
FQAL vs SCHQ Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year FQAL returned +19.37% while SCHQ returned +0.09%. Year to date, FQAL is up 12.56% versus a loss of 2.72% for SCHQ.
Over three years, FQAL compounded at +20.54% per year against +0.91% for SCHQ; over five years the annualized figures are +11.62% and -7.20% respectively. Across the full 7-year window we track, FQAL has the edge at +13.76% annualized vs -4.41%. 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 13.5% for SCHQ. 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 -46.7% for SCHQ. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FQAL charges 0.15% per year while SCHQ charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 4.91% for SCHQ.
Holdings Overlap
FQAL and SCHQ share 0 holdings out of 217 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, FQAL or SCHQ?
FQAL has an expense ratio of 0.15% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, FQAL or SCHQ?
Over the past year FQAL returned +19.37% vs +0.09% for SCHQ, so FQAL leads on 1-year performance. Over the longest common window we track (7 years), FQAL annualized +13.76% vs -4.41% for SCHQ. Past performance does not guarantee future results.
Which is riskier, FQAL or SCHQ?
FQAL has been the more volatile fund at 15.0% annualized versus 13.5% for SCHQ. Worst drawdown: FQAL -34.1% vs SCHQ -46.7%.
Should I hold both FQAL and SCHQ?
FQAL and SCHQ have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and SCHQ?
FQAL and SCHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 217 unique securities.
Which pays a higher dividend, FQAL or SCHQ?
FQAL yields 1.15% while SCHQ yields 4.91%, so SCHQ currently pays the higher dividend yield.
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