FSMD vs SCHD
Fidelity Small-Mid Multifactor ETF vs Schwab US Dividend Equity ETF
Which is better, FSMD or SCHD?
Mid Cap Growth against Large Cap Value.
SCHD has a lower expense ratio. FSMD led over 3Y, SCHD over 1Y, 5Y and the full window. FSMD is less concentrated, with 8.8% of the fund in its ten largest positions against 41.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FSMD | SCHD |
|---|---|---|
| Expense Ratio | 0.15% | 0.06%Best |
| AUM | $2.5B | $112.2B |
| Dividend Yield | 1.25% | 3.13% |
| Holdings | 601 | 103 |
| YTD Return | +16.56% | +27.56%Best |
| 1Y Return | +18.06% | +30.29%Best |
| 3Y Return (annualized) | +17.02%Best | +16.37% |
| 5Y Return (annualized) | +9.94% | +10.23%Best |
| Volatility (annualized) | 18.9% | 16.3%Best |
| Max Drawdown | -40.9% | -33.4%Best |
| $10,000 over 5 years | $16,061 | $16,274Best |
| Top 10 Weight | 8.8%Best | 41.5% |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Value |
| Inception | Feb 26, 2019 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Feb 28, 2019 to Sep 4, 2026 (7.5 years).
FSMD vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.5 years both funds cover.
FSMD vs SCHD Performance
Fidelity Small-Mid Multifactor ETF (FSMD) is an ETF from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FSMD returned +18.06% while SCHD returned +30.29%. Year to date, FSMD is up 16.56% versus a gain of 27.56% for SCHD.
Over three years, FSMD compounded at +17.02% per year against +16.37% for SCHD; over five years the annualized figures are +9.94% and +10.23% respectively. Across the full 8-year window we track, SCHD has the edge at +12.62% annualized vs +11.28%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FSMD has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 16.3% 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 -40.9% for FSMD and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FSMD 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, FSMD currently yields 1.25% against 3.13% for SCHD.
Holdings Overlap
4.2% of FSMD's money is in holdings SCHD also owns. 3.6% of SCHD's money is in holdings FSMD also owns.
FSMD and SCHD share little of their money.
28 positions in common, counted across the 588 positions we hold weights for in FSMD and 100 in SCHD, against full books of 601 and 103.
What only one of them owns
Our book lists 72 positions for SCHD that do not appear in our book for FSMD (96.3% of the fund), and 546 for FSMD that do not appear in SCHD (92.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FSMD | Weight in SCHD | Difference |
|---|---|---|---|
| EWBCEast West Bancorp, Inc. | 0.32% | 0.45% | 0.13% |
| DINOHollyfrontier | 0.28% | 0.31% | 0.03% |
| AFGAmerican Financial Group Inc/Oh | 0.23% | 0.25% | 0.02% |
| SWKSSkyworks Solutions Inc. | 0.19% | 0.27% | 0.08% |
| ORIOld Republic International Corp | 0.21% | 0.24% | 0.03% |
| COLBColumbia Banking System Inc Common Stock | 0.20% | 0.23% | 0.03% |
| ALVAllianz Ag | 0.18% | 0.21% | 0.03% |
| MMacy'S Inc. | 0.17% | 0.17% | 0.00% |
| NXSTNexstar Media Group Inc | 0.15% | 0.14% | 0.01% |
| MTNVail Resorts Inc. | 0.15% | 0.13% | 0.02% |
You are not choosing between two funds in isolation.
Whichever of FSMD and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FSMD or SCHD?
FSMD has an expense ratio of 0.15% while SCHD charges 0.06%. SCHD is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, FSMD or SCHD?
Over the past year FSMD returned +18.06% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), FSMD annualized +11.28% vs +12.62% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FSMD or SCHD?
FSMD has been the more volatile fund at 18.9% annualized versus 16.3% for SCHD. Worst drawdown: FSMD -40.9% vs SCHD -33.4%.
Should I hold both FSMD and SCHD?
FSMD and SCHD have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FSMD and SCHD?
4.2% of FSMD's money is in holdings SCHD also owns. 3.6% of SCHD's is in holdings FSMD also owns. They hold 28 positions in common, counted across the 588 positions we hold weights for in FSMD and 100 in SCHD.
Which pays a higher dividend, FSMD or SCHD?
FSMD yields 1.25% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FSMD?
SCHD has a lower expense ratio. FSMD led over 3Y, SCHD over 1Y, 5Y and the full window. FSMD is less concentrated, with 8.8% of the fund in its ten largest positions against 41.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.