FREL vs SCHD
FREL vs SCHD
Fidelity MSCI Real Estate Index ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FREL offers more diversification with 127 holdings.
Side-by-Side Comparison
| Metric | FREL | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.06% | |
| AUM | $1.5B | $103.7B | |
| Dividend Yield | 3.29% | 3.31% | |
| Holdings | 130 | 104 | |
| YTD Return | +13.87% | +23.31% | |
| 1Y Return | +13.65% | +30.42% | |
| 3Y Return (annualized) | +9.85% | +14.66% | |
| 5Y Return (annualized) | +2.26% | +9.59% | |
| Volatility (annualized) | 17.2% | 13.6% | |
| Max Drawdown | -43.5% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Feb 2, 2015 | Oct 20, 2011 |
FREL vs SCHD Performance
Fidelity MSCI Real Estate Index ETF (FREL) 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 FREL returned +13.65% while SCHD returned +30.42%. Year to date, FREL is up 13.87% versus a gain of 23.31% for SCHD.
Over three years, FREL compounded at +9.85% per year against +14.66% for SCHD; over five years the annualized figures are +2.26% and +9.59% respectively. Across the full 12-year window we track, SCHD has the edge at +11.34% annualized vs +3.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FREL has been the more volatile fund, with annualized monthly volatility of 17.2% 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 -43.5% for FREL 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FREL charges 0.08% per year while SCHD charges 0.06%. On a $10,000 position that is $8 vs $6 annually, a gap of $2 per year that compounds over a long holding period. On income, FREL currently yields 3.29% against 3.31% for SCHD.
Holdings Overlap
FREL and SCHD share 0 holdings out of 227 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, FREL or SCHD?
FREL has an expense ratio of 0.08% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, FREL or SCHD?
Over the past year FREL returned +13.65% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), FREL annualized +3.40% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, FREL or SCHD?
FREL has been the more volatile fund at 17.2% annualized versus 13.6% for SCHD. Worst drawdown: FREL -43.5% vs SCHD -33.4%.
Should I hold both FREL and SCHD?
FREL and SCHD have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FREL and SCHD?
FREL and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 227 unique securities.
Which pays a higher dividend, FREL or SCHD?
FREL yields 3.29% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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