FZROX vs SCHD
Fidelity ZERO Total Market Index Fund vs Schwab US Dividend Equity ETF
Which is better, FZROX or SCHD?
Large Cap Blend against Large Cap Value.
FZROX has a lower expense ratio. FZROX led over 3Y, 5Y and the full window, SCHD over 1Y. FZROX is less concentrated, with 33.4% of the fund in its ten largest positions against 41.6%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FZROX | SCHD |
|---|---|---|
| Expense Ratio | 0.00%Best | 0.06% |
| AUM | $3.1B | $111.6B |
| Dividend Yield | 0.91% | 3.24% |
| Holdings | 2,670 | 206 |
| YTD Price Return | +14.47% | +21.57%Best |
| 1Y Price Return | +16.93% | +25.46%Best |
| 3Y Price Return (annualized) | +21.19%Best | +12.46% |
| 5Y Price Return (annualized) | +10.95%Best | +5.70% |
| Volatility (annualized) | 15.2%Best | 15.4% |
| Max Drawdown | -26.9% | -18.9%Best |
| $10,000 over 5 years | $16,813Best | $13,194 |
| Top 10 Weight | 33.4%Best | 41.6% |
| Fund Family | Fidelity Investments (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Aug 2, 2018 | Oct 20, 2011 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for FZROX. Both funds are measured the same way, so the comparison holds. FZROX yields 0.91% and SCHD 3.24% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
FZROX vs SCHD growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
FZROX vs SCHD Performance
Fidelity ZERO Total Market Index Fund (FZROX) is a mutual fund from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FZROX returned +16.93% while SCHD returned +25.46%. Year to date, FZROX is up 14.47% versus a gain of 21.57% for SCHD.
Over three years, FZROX compounded at +21.19% per year against +12.46% for SCHD; over five years the annualized figures are +10.95% and +5.70% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 15.2% for FZROX. 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 -26.9% for FZROX and -18.9% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FZROX charges 0.00% per year while SCHD charges 0.06%. On a $10,000 position that is $0 vs $6 annually, a gap of $6 per year that compounds over a long holding period. On income, FZROX currently yields 0.91% against 3.24% for SCHD.
Structure and taxes
FZROX is a mutual fund and SCHD is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
7.3% of FZROX's money is in holdings SCHD also owns. 99.3% of SCHD's money is in holdings FZROX also owns.
Most of SCHD is already inside FZROX. Owning both mostly buys the same companies twice.
The two holdings books were reported 64 days apart, FZROX as of Jul 31, 2026 and SCHD as of Oct 3, 2026, so some of the difference between them is the time between the two reports rather than the funds.
87 positions in common, counted across the 2,127 positions we hold weights for in FZROX and 98 in SCHD, against full books of 2,670 and 206.
What only one of them owns
Our book lists 11 positions for SCHD that do not appear in our book for FZROX (0.5% of the fund), and 1,112 for FZROX that do not appear in SCHD (90.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FZROX | Weight in SCHD | Difference |
|---|---|---|---|
| TXNTexas Instrument Inc | 0.35% | 4.89% | 4.54% |
| QCOMQualcomm Inc. | 0.21% | 4.61% | 4.40% |
| CVXChevron Corp | 0.51% | 4.14% | 3.63% |
| PGProcter & Gamble Company | 0.46% | 4.16% | 3.70% |
| KOCoca Cola Co. | 0.47% | 4.12% | 3.65% |
| MRKMerck & Company Inc | 0.44% | 4.04% | 3.60% |
| UNHUnitedhealth Group Incorporated | 0.52% | 3.95% | 3.43% |
| HDHome Depot Inc/The | 0.46% | 3.77% | 3.31% |
| VZVerizon Communic | 0.27% | 3.88% | 3.61% |
| AMGNAmgen Inc. | 0.29% | 3.86% | 3.57% |
99.3% of SCHD is already inside FZROX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FZROX or SCHD?
FZROX has an expense ratio of 0.00% while SCHD charges 0.06%. FZROX is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, FZROX or SCHD?
Over the past year FZROX returned +16.93% vs +25.46% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FZROX or SCHD?
SCHD has been the more volatile fund at 15.4% annualized versus 15.2% for FZROX. Worst drawdown: FZROX -26.9% vs SCHD -18.9%.
Should I hold both FZROX and SCHD?
FZROX and SCHD have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FZROX and SCHD?
99.3% of SCHD's money is in holdings FZROX also owns. 99.3% of SCHD's is in holdings FZROX also owns. They hold 87 positions in common, counted across the 2,127 positions we hold weights for in FZROX and 98 in SCHD.
Which pays a higher dividend, FZROX or SCHD?
FZROX yields 0.91% while SCHD yields 3.24%, so SCHD currently pays the higher dividend yield.
Is it better to hold FZROX or SCHD in a taxable account?
SCHD is an ETF and FZROX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is SCHD better than FZROX?
FZROX has a lower expense ratio. FZROX led over 3Y, 5Y and the full window, SCHD over 1Y. FZROX is less concentrated, with 33.4% of the fund in its ten largest positions against 41.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.