FSEC vs SCHD
FSEC vs SCHD
Fidelity Investment Grade Securitized ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FSEC offers more diversification with 731 holdings.
Side-by-Side Comparison
| Metric | FSEC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.06% | |
| AUM | $4.7B | $103.7B | |
| Dividend Yield | 4.75% | 3.31% | |
| Holdings | 1,026 | 104 | |
| YTD Return | +0.32% | +22.69% | |
| 1Y Return | +4.61% | +30.94% | |
| 3Y Return (annualized) | +4.92% | +14.20% | |
| 5Y Return (annualized) | +0.25% | +9.59% | |
| Volatility (annualized) | 6.6% | 13.7% | |
| Max Drawdown | -18.0% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 2, 2021 | Oct 20, 2011 |
FSEC vs SCHD Performance
Fidelity Investment Grade Securitized ETF (FSEC) 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 FSEC returned +4.61% while SCHD returned +30.94%. Year to date, FSEC is up 0.32% versus a gain of 22.69% for SCHD.
Over three years, FSEC compounded at +4.92% per year against +14.20% for SCHD; over five years the annualized figures are +0.25% and +9.59% respectively. Across the full 5-year window we track, SCHD has the edge at +11.31% annualized vs +0.32%. 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 6.6% for FSEC. 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 -18.0% for FSEC 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FSEC 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, FSEC currently yields 4.75% against 3.31% for SCHD.
Holdings Overlap
FSEC and SCHD share 0 holdings out of 831 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, FSEC or SCHD?
FSEC 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, FSEC or SCHD?
Over the past year FSEC returned +4.61% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FSEC annualized +0.32% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, FSEC or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 6.6% for FSEC. Worst drawdown: FSEC -18.0% vs SCHD -33.4%.
Should I hold both FSEC and SCHD?
FSEC and SCHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FSEC and SCHD?
FSEC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 831 unique securities.
Which pays a higher dividend, FSEC or SCHD?
FSEC yields 4.75% while SCHD yields 3.31%, so FSEC currently pays the higher dividend yield.
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