FBND vs SCHD
FBND vs SCHD
Fidelity Total Bond 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 | FBND | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.06% | |
| AUM | $26.6B | $103.7B | |
| Dividend Yield | 5.07% | 3.31% | |
| Holdings | 1,558 | 104 | |
| YTD Return | -0.33% | +22.69% | |
| 1Y Return | +2.89% | +30.94% | |
| 3Y Return (annualized) | +4.55% | +14.20% | |
| 5Y Return (annualized) | +0.29% | +9.59% | |
| Volatility (annualized) | 5.0% | 13.7% | |
| Max Drawdown | -17.3% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 6, 2014 | Oct 20, 2011 |
FBND vs SCHD Performance
Fidelity Total Bond ETF (FBND) is a ETF from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FBND returned +2.89% while SCHD returned +30.94%. Year to date, FBND is down 0.33% versus a gain of 22.69% for SCHD.
Over three years, FBND compounded at +4.55% per year against +14.20% for SCHD; over five years the annualized figures are +0.29% and +9.59% respectively. Across the full 12-year window we track, SCHD has the edge at +11.31% annualized vs +0.95%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 5.0% for FBND. 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 -17.3% for FBND 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBND charges 0.36% per year while SCHD charges 0.06%. On a $10,000 position that is $36 vs $6 annually, a gap of $30 per year that compounds over a long holding period. On income, FBND currently yields 5.07% against 3.31% for SCHD.
Holdings Overlap
FBND and SCHD share 0 holdings out of 141 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, FBND or SCHD?
FBND has an expense ratio of 0.36% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, FBND or SCHD?
Over the past year FBND returned +2.89% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), FBND annualized +0.95% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, FBND or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 5.0% for FBND. Worst drawdown: FBND -17.3% vs SCHD -33.4%.
Should I hold both FBND and SCHD?
FBND and SCHD have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBND and SCHD?
FBND and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, FBND or SCHD?
FBND yields 5.07% while SCHD yields 3.31%, so FBND currently pays the higher dividend yield.
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