FHYS vs SCHD
FHYS vs SCHD
Federated Hermes Short Duration High Yield ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FHYS offers more diversification with 205 holdings.
Side-by-Side Comparison
| Metric | FHYS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.06% | |
| AUM | $54M | $103.7B | |
| Dividend Yield | 5.82% | 3.31% | |
| Holdings | 252 | 104 | |
| YTD Return | +2.19% | +24.08% | |
| 1Y Return | +5.26% | +31.88% | |
| 3Y Return (annualized) | +7.36% | +14.92% | |
| 5Y Return (annualized) | - | +9.85% | |
| Volatility (annualized) | 4.6% | 13.6% | |
| Max Drawdown | -11.6% | -33.4% | |
| Fund Family | Federated Hermes | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 16, 2021 | Oct 20, 2011 |
FHYS vs SCHD Performance
Federated Hermes Short Duration High Yield ETF (FHYS) is a ETF from Federated Hermes and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FHYS returned +5.26% while SCHD returned +31.88%. Year to date, FHYS is up 2.19% versus a gain of 24.08% for SCHD.
Over three years, FHYS compounded at +7.36% per year against +14.92% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +4.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.6% for FHYS. 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 -11.6% for FHYS 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FHYS charges 0.50% per year while SCHD charges 0.06%. On a $10,000 position that is $50 vs $6 annually, a gap of $44 per year that compounds over a long holding period. On income, FHYS currently yields 5.82% against 3.31% for SCHD.
Holdings Overlap
FHYS and SCHD share 0 holdings out of 305 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, FHYS or SCHD?
FHYS has an expense ratio of 0.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, FHYS or SCHD?
Over the past year FHYS returned +5.26% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FHYS annualized +4.50% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FHYS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.6% for FHYS. Worst drawdown: FHYS -11.6% vs SCHD -33.4%.
Should I hold both FHYS and SCHD?
FHYS and SCHD have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHYS and SCHD?
FHYS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 305 unique securities.
Which pays a higher dividend, FHYS or SCHD?
FHYS yields 5.82% while SCHD yields 3.31%, so FHYS currently pays the higher dividend yield.
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