FXED vs SCHD
Sound Enhanced Fixed Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | FXED | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.89% | 0.06% | |
| AUM | $40M | $103.7B | |
| Dividend Yield | 4.31% | 3.31% | |
| Holdings | 60 | 104 | |
| YTD Return | +0.13% | +25.62% | |
| 1Y Return | +1.67% | +32.62% | |
| 3Y Return (annualized) | +6.16% | +15.58% | |
| 5Y Return (annualized) | +2.30% | +9.63% | |
| Volatility (annualized) | 9.7% | 13.6% | |
| Max Drawdown | -19.7% | -33.4% | |
| Fund Family | Sound Income Strategies | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 30, 2020 | Oct 20, 2011 |
FXED vs SCHD Performance
Sound Enhanced Fixed Income ETF (FXED) is a ETF from Sound Income Strategies and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FXED returned +1.67% while SCHD returned +32.62%. Year to date, FXED is up 0.13% versus a gain of 25.62% for SCHD.
Over three years, FXED compounded at +6.16% per year against +15.58% for SCHD; over five years the annualized figures are +2.30% and +9.63% respectively. Across the full 6-year window we track, SCHD has the edge at +11.47% annualized vs +3.32%. 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 9.7% for FXED. 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 -19.7% for FXED 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FXED charges 1.89% per year while SCHD charges 0.06%. On a $10,000 position that is $189 vs $6 annually, a gap of $183 per year that compounds over a long holding period. On income, FXED currently yields 4.31% against 3.31% for SCHD.
Holdings Overlap
FXED and SCHD share 0 holdings out of 157 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, FXED or SCHD?
FXED has an expense ratio of 1.89% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $183 per year of difference.
Which performed better, FXED or SCHD?
Over the past year FXED returned +1.67% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), FXED annualized +3.32% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, FXED or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 9.7% for FXED. Worst drawdown: FXED -19.7% vs SCHD -33.4%.
Should I hold both FXED and SCHD?
FXED and SCHD have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXED and SCHD?
FXED and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 157 unique securities.
Which pays a higher dividend, FXED or SCHD?
FXED yields 4.31% while SCHD yields 3.31%, so FXED currently pays the higher dividend yield.
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