FZROX vs SCHD
Fidelity ZERO Total Market Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
FZROX has a lower expense ratio. SCHD delivered stronger 1-year returns. FZROX offers more diversification with 2,533 holdings.
Side-by-Side Comparison
| Metric | FZROX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.00% | 0.06% | |
| AUM | $3.1B | $108.7B | |
| Dividend Yield | 0.93% | 3.13% | |
| Holdings | 2,533 | 104 | |
| YTD Return | +14.89% | +26.54% | |
| 1Y Return | +21.23% | +30.90% | |
| 3Y Return (annualized) | +20.67% | +16.29% | |
| 5Y Return (annualized) | +11.32% | +9.65% | |
| Volatility (annualized) | 15.7% | 13.6% | |
| Max Drawdown | -26.9% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 2, 2018 | Oct 20, 2011 |
FZROX vs SCHD Performance
Fidelity ZERO Total Market Index Fund (FZROX) is a mutual fund from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FZROX returned +21.23% while SCHD returned +30.90%. Year to date, FZROX is up 14.89% versus a gain of 26.54% for SCHD.
Over three years, FZROX compounded at +20.67% per year against +16.29% for SCHD; over five years the annualized figures are +11.32% and +9.65% respectively. Across the full 5-year window we track, SCHD has the edge at +11.51% annualized vs +11.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FZROX has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -26.9% for FZROX 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FZROX charges 0.00% per year while SCHD charges 0.06%. On a $10,000 position that is $0 vs $6 annually, a gap of $6 per year that compounds over a long holding period. On income, FZROX currently yields 0.93% against 3.13% for SCHD.
Holdings Overlap
FZROX and SCHD share 97 holdings out of 2517 unique holdings combined, representing a 7.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FZROX or SCHD?
FZROX has an expense ratio of 0.00% while SCHD charges 0.06%. FZROX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, FZROX or SCHD?
Over the past year FZROX returned +21.23% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FZROX annualized +11.32% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FZROX or SCHD?
FZROX has been the more volatile fund at 15.7% annualized versus 13.6% for SCHD. Worst drawdown: FZROX -26.9% vs SCHD -33.4%.
Should I hold both FZROX and SCHD?
FZROX and SCHD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FZROX and SCHD?
FZROX and SCHD share 97 common holdings with a 7.4% weight overlap. Combined, they hold 2517 unique securities.
Which pays a higher dividend, FZROX or SCHD?
FZROX yields 0.93% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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