FXNAX vs SCHD
Fidelity US Bond Index Fund vs Schwab US Dividend Equity ETF
Which is better, FXNAX or SCHD?
Long Term High Quality against Large Cap Value.
FXNAX has a lower expense ratio.
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 | FXNAX | SCHD |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $39.5B | $112.1B |
| Dividend Yield | 3.49% | 3.00% |
| Holdings | 10,442 | 103 |
| YTD Price Return | -3.98% | +22.03% |
| 1Y Price Return | -4.61% | +23.41% |
| 3Y Price Return (annualized) | +0.37% | +11.33% |
| 5Y Price Return (annualized) | -3.62% | +5.95% |
| Volatility (annualized) | 6.2%Best | 15.2% |
| Max Drawdown | -21.4% | -18.9%Best |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Long Term High Quality | Large Cap Value |
| Inception | May 4, 2011 | Oct 20, 2011 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. FXNAX currently yields 3.49% and SCHD 3.00%.
Volatility and max drawdown are measured over the window both funds cover: Sep 17, 2021 to Sep 15, 2026 (5 years).
FXNAX vs SCHD Performance
Fidelity US Bond Index Fund (FXNAX) is a mutual fund from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FXNAX's price moved -4.61% and SCHD's +23.41%, before the income each one paid out.
Over three years, FXNAX compounded at +0.37% per year against +11.33% for SCHD; over five years the annualized figures are -3.62% and +5.95% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 6.2% for FXNAX. 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 -21.4% for FXNAX and -18.9% 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 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FXNAX charges 0.03% per year while SCHD charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, FXNAX currently yields 3.49% against 3.00% for SCHD.
Structure and taxes
FXNAX is a mutual fund and SCHD is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 5,235 holdings in FXNAX and 100 in SCHD, totalling 79.0% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 92 days apart, FXNAX as of May 31, 2026 and SCHD as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 5,235 positions we hold weights for in FXNAX and 100 in SCHD, against full books of 10,442 and 103.
You are not choosing between two funds in isolation.
Whichever of FXNAX 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, FXNAX or SCHD?
FXNAX has an expense ratio of 0.03% while SCHD charges 0.06%. FXNAX is the cheaper option, by $3 a year on a $10,000 investment.
Which is riskier, FXNAX or SCHD?
SCHD has been the more volatile fund at 15.2% annualized versus 6.2% for FXNAX. Worst drawdown: FXNAX -21.4% vs SCHD -18.9%.
Should I hold both FXNAX and SCHD?
FXNAX and SCHD have a monthly-return correlation of 0.53, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FXNAX or SCHD?
FXNAX yields 3.49% while SCHD yields 3.00%, so FXNAX currently pays the higher dividend yield.
Is it better to hold FXNAX or SCHD in a taxable account?
SCHD is an ETF and FXNAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is SCHD better than FXNAX?
FXNAX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.