FXNAX vs SCHD
FXNAX vs SCHD
Fidelity US Bond Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
FXNAX has a lower expense ratio. SCHD delivered stronger 1-year returns. FXNAX offers more diversification with 5307 holdings.
Side-by-Side Comparison
| Metric | FXNAX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.06% | |
| AUM | $39.5B | $103.7B | |
| Dividend Yield | 3.39% | 3.31% | |
| Holdings | 10,443 | 104 | |
| YTD Return | -2.46% | +24.08% | |
| 1Y Return | -1.72% | +31.88% | |
| 3Y Return (annualized) | +0.46% | +14.92% | |
| 5Y Return (annualized) | -3.43% | +9.85% | |
| Volatility (annualized) | 6.2% | 13.6% | |
| Max Drawdown | -21.6% | -33.4% | |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | May 4, 2011 | Oct 20, 2011 |
FXNAX vs SCHD Performance
Fidelity US Bond Index Fund (FXNAX) is a mutual fund from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FXNAX returned -1.72% while SCHD returned +31.88%. Year to date, FXNAX is down 2.46% versus a gain of 24.08% for SCHD.
Over three years, FXNAX compounded at +0.46% per year against +14.92% for SCHD; over five years the annualized figures are -3.43% and +9.85% respectively. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs -3.43%. 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 6.2% for FXNAX. 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 -21.6% for FXNAX 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FXNAX charges 0.03% per year while SCHD charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, FXNAX currently yields 3.39% against 3.31% for SCHD.
Holdings Overlap
FXNAX and SCHD share 0 holdings out of 5407 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, FXNAX or SCHD?
FXNAX has an expense ratio of 0.03% while SCHD charges 0.06%. FXNAX is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, FXNAX or SCHD?
Over the past year FXNAX returned -1.72% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), FXNAX annualized -3.43% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FXNAX or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 6.2% for FXNAX. Worst drawdown: FXNAX -21.6% vs SCHD -33.4%.
Should I hold both FXNAX and SCHD?
FXNAX and SCHD have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FXNAX and SCHD?
FXNAX and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 5407 unique securities.
Which pays a higher dividend, FXNAX or SCHD?
FXNAX yields 3.39% while SCHD yields 3.31%, so FXNAX currently pays the higher dividend yield.
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