FTEC vs SCHD

Quick Verdict

SCHD has a lower expense ratio. FTEC delivered stronger 1-year returns. FTEC offers more diversification with 262 holdings.

Lower Fees: SCHDHigher Returns: FTECMore Diversified: FTEC

Side-by-Side Comparison

MetricFTECSCHDWinner
Expense Ratio0.08%0.06%
AUM$21.0B$103.7B
Dividend Yield0.35%3.31%
Holdings270104
YTD Return+27.44%+24.08%
1Y Return+40.41%+31.88%
3Y Return (annualized)+31.38%+14.92%
5Y Return (annualized)+19.34%+9.85%
Volatility (annualized)19.7%13.6%
Max Drawdown-35.0%-33.4%
Fund FamilyFidelity Investments (US)Charles Schwab Asset Management
CategoryEquityEquity
InceptionOct 21, 2013Oct 20, 2011

FTEC vs SCHD Performance

Fidelity MSCI Information Technology Index ETF (FTEC) 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 FTEC returned +40.41% while SCHD returned +31.88%. Year to date, FTEC is up 27.44% versus a gain of 24.08% for SCHD.

Over three years, FTEC compounded at +31.38% per year against +14.92% for SCHD; over five years the annualized figures are +19.34% and +9.85% respectively. Across the full 13-year window we track, FTEC has the edge at +21.36% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FTEC has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -35.0% for FTEC 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FTEC 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, FTEC currently yields 0.35% against 3.31% for SCHD.

Holdings Overlap

2.6%overlap

FTEC and SCHD share 4 holdings out of 358 unique holdings combined, representing a 2.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FTECWeight in SCHDDifference
TXN0.97%3.70%2.73%
QCOM0.80%2.72%1.92%
2345:TW0.71%2.24%1.53%
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Frequently Asked Questions

Which is cheaper, FTEC or SCHD?

FTEC 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, FTEC or SCHD?

Over the past year FTEC returned +40.41% vs +31.88% for SCHD, so FTEC leads on 1-year performance. Over the longest common window we track (13 years), FTEC annualized +21.36% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, FTEC or SCHD?

FTEC has been the more volatile fund at 19.7% annualized versus 13.6% for SCHD. Worst drawdown: FTEC -35.0% vs SCHD -33.4%.

Should I hold both FTEC and SCHD?

FTEC and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTEC and SCHD?

FTEC and SCHD share 4 common holdings with a 2.6% weight overlap. Combined, they hold 358 unique securities.

Which pays a higher dividend, FTEC or SCHD?

FTEC yields 0.35% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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