FHEQ vs SCHD
FHEQ vs SCHD
Fidelity Hedged Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FHEQ offers more diversification with 168 holdings.
Side-by-Side Comparison
| Metric | FHEQ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.06% | |
| AUM | $897M | $103.7B | |
| Dividend Yield | 0.55% | 3.31% | |
| Holdings | 172 | 104 | |
| YTD Return | +11.13% | +24.08% | |
| 1Y Return | +18.25% | +31.88% | |
| 3Y Return (annualized) | - | +14.92% | |
| 5Y Return (annualized) | - | +9.85% | |
| Volatility (annualized) | 9.7% | 13.6% | |
| Max Drawdown | -11.1% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Apr 9, 2024 | Oct 20, 2011 |
FHEQ vs SCHD Performance
Fidelity Hedged Equity ETF (FHEQ) 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 FHEQ returned +18.25% while SCHD returned +31.88%. Year to date, FHEQ is up 11.13% versus a gain of 24.08% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 9.7% for FHEQ. 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 -11.1% for FHEQ 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FHEQ charges 0.48% per year while SCHD charges 0.06%. On a $10,000 position that is $48 vs $6 annually, a gap of $42 per year that compounds over a long holding period. On income, FHEQ currently yields 0.55% against 3.31% for SCHD.
Holdings Overlap
FHEQ and SCHD share 13 holdings out of 255 unique holdings combined, representing a 6.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FHEQ | Weight in SCHD | Difference |
|---|---|---|---|
| UNH | 0.66% | 4.54% | 3.88% |
| ABT | 0.65% | 4.49% | 3.84% |
| PG | 0.42% | 4.15% | 3.73% |
| CVX | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| COP | Pro | Pro | Pro |
| BMY | Pro | Pro | Pro |
| MO | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| LMT | Pro | Pro | Pro |
See all 10 holdings FHEQ shares with SCHD Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, FHEQ or SCHD?
FHEQ has an expense ratio of 0.48% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FHEQ or SCHD?
Over the past year FHEQ returned +18.25% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), FHEQ annualized +15.34% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FHEQ or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 9.7% for FHEQ. Worst drawdown: FHEQ -11.1% vs SCHD -33.4%.
Should I hold both FHEQ and SCHD?
FHEQ and SCHD have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHEQ and SCHD?
FHEQ and SCHD share 13 common holdings with a 6.2% weight overlap. Combined, they hold 255 unique securities.
Which pays a higher dividend, FHEQ or SCHD?
FHEQ yields 0.55% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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