FFSM vs SCHD
FFSM vs SCHD
Fidelity Fundamental Small-Mid Cap ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. FFSM delivered stronger 1-year returns. FFSM offers more diversification with 190 holdings.
Side-by-Side Comparison
| Metric | FFSM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 0.43% | 3.31% | |
| Holdings | 194 | 104 | |
| YTD Return | +21.92% | +24.08% | |
| 1Y Return | +37.85% | +31.88% | |
| 3Y Return (annualized) | +19.51% | +14.92% | |
| 5Y Return (annualized) | +11.33% | +9.85% | |
| Volatility (annualized) | 18.8% | 13.6% | |
| Max Drawdown | -26.6% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2021 | Oct 20, 2011 |
FFSM vs SCHD Performance
Fidelity Fundamental Small-Mid Cap ETF (FFSM) 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 FFSM returned +37.85% while SCHD returned +31.88%. Year to date, FFSM is up 21.92% versus a gain of 24.08% for SCHD.
Over three years, FFSM compounded at +19.51% per year against +14.92% for SCHD; over five years the annualized figures are +11.33% and +9.85% respectively. Across the full 6-year window we track, FFSM has the edge at +12.49% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFSM has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -26.6% for FFSM 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFSM charges 0.43% per year while SCHD charges 0.06%. On a $10,000 position that is $43 vs $6 annually, a gap of $37 per year that compounds over a long holding period. On income, FFSM currently yields 0.43% against 3.31% for SCHD.
Holdings Overlap
FFSM and SCHD share 3 holdings out of 287 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FFSM or SCHD?
FFSM has an expense ratio of 0.43% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FFSM or SCHD?
Over the past year FFSM returned +37.85% vs +31.88% for SCHD, so FFSM leads on 1-year performance. Over the longest common window we track (6 years), FFSM annualized +12.49% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FFSM or SCHD?
FFSM has been the more volatile fund at 18.8% annualized versus 13.6% for SCHD. Worst drawdown: FFSM -26.6% vs SCHD -33.4%.
Should I hold both FFSM and SCHD?
FFSM and SCHD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFSM and SCHD?
FFSM and SCHD share 3 common holdings with a 0.9% weight overlap. Combined, they hold 287 unique securities.
Which pays a higher dividend, FFSM or SCHD?
FFSM yields 0.43% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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