FRDM vs SCHD
Freedom 100 Emerging Markets ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FRDM delivered stronger 1-year returns. FRDM offers more diversification with 127 holdings.
Side-by-Side Comparison
| Metric | FRDM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.06% | |
| AUM | $3.3B | $103.7B | |
| Dividend Yield | 1.53% | 3.31% | |
| Holdings | 134 | 104 | |
| YTD Return | +25.77% | +25.33% | |
| 1Y Return | +59.76% | +32.31% | |
| 3Y Return (annualized) | +31.27% | +15.40% | |
| 5Y Return (annualized) | +16.65% | +9.70% | |
| Volatility (annualized) | 23.2% | 13.6% | |
| Max Drawdown | -40.5% | -33.4% | |
| Fund Family | Freedom ETFs | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | May 23, 2019 | Oct 20, 2011 |
FRDM vs SCHD Performance
Freedom 100 Emerging Markets ETF (FRDM) is a ETF from Freedom ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FRDM returned +59.76% while SCHD returned +32.31%. Year to date, FRDM is up 25.77% versus a gain of 25.33% for SCHD.
Over three years, FRDM compounded at +31.27% per year against +15.40% for SCHD; over five years the annualized figures are +16.65% and +9.70% respectively. Across the full 7-year window we track, FRDM has the edge at +16.45% annualized vs +11.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FRDM has been the more volatile fund, with annualized monthly volatility of 23.2% 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 -40.5% for FRDM 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FRDM charges 0.49% per year while SCHD charges 0.06%. On a $10,000 position that is $49 vs $6 annually, a gap of $43 per year that compounds over a long holding period. On income, FRDM currently yields 1.53% against 3.31% for SCHD.
Holdings Overlap
FRDM and SCHD share 0 holdings out of 227 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, FRDM or SCHD?
FRDM has an expense ratio of 0.49% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, FRDM or SCHD?
Over the past year FRDM returned +59.76% vs +32.31% for SCHD, so FRDM leads on 1-year performance. Over the longest common window we track (7 years), FRDM annualized +16.45% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, FRDM or SCHD?
FRDM has been the more volatile fund at 23.2% annualized versus 13.6% for SCHD. Worst drawdown: FRDM -40.5% vs SCHD -33.4%.
Should I hold both FRDM and SCHD?
FRDM and SCHD have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRDM and SCHD?
FRDM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 227 unique securities.
Which pays a higher dividend, FRDM or SCHD?
FRDM yields 1.53% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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