SCHD
Schwab U.S. Dividend Equity ETF
SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high dividend yield with rigorous quality screens. Requires 10+ years of dividend payments and screens for financial health metrics.
FDRR
Fidelity Dividend ETF for Rising Rates
FDRR tracks the Fidelity Dividend Index for Rising Rates, focusing on dividend-paying companies with positive sensitivity to rising interest rates. Targets sectors that typically benefit from higher rates.
Key Metrics Comparison
| Metric | SCHD | FDRR | Winner |
|---|---|---|---|
| Dividend Yield | 3.27% | 2.85% | SCHD (+0.61%) |
| Expense Ratio | 0.06% | 0.29% | SCHD (-0.23%) |
| 5-Year Annual Return | 11.2% | 10.5% | SCHD (+0.7%) |
| Dividend Growth (5Y) | 8.5% | 7.2% | SCHD (+1.3%) |
| Number of Holdings | 104 | 102 | SCHD |
| Assets Under Management | $95.2B | $1.2B | SCHD |
| P/E Ratio | 15.2 | 17.8 | SCHD |
| Beta (5-Year) | 0.85 | 0.95 | SCHD |
Performance Comparison
SCHD Performance
Higher total returns with better risk-adjusted performance. Quality-focused approach provides superior yield and lower volatility across all rate environments.
FDRR Performance
Strong performance in rising rate environments. Rate-sensitive focus provides advantage when interest rates are increasing.
Strategy Analysis
SCHD Approach
Quality-focused dividend growth:
- Minimum 10 years of dividend payments
- Dividend yield > 2.5% requirement
- Cash flow to total debt > 50%
- Return on equity > 15%
- Focus on financial health and stability
- Rate-neutral approach
- Value-oriented, quality focus
FDRR Approach
Rising rates dividend strategy:
- Focus on rate-sensitive sectors
- Targets companies benefiting from higher rates
- Heavy financials exposure (banks, insurers)
- Cyclical sector overweight
- Positive correlation to interest rates
- Economic sensitivity focus
- Rate-hedging characteristics
Interest Rate Sensitivity Analysis
SCHD maintains a rate-neutral stance with balanced sector exposure, while FDRR is specifically designed for rising rate environments with heavy financials and cyclical sector exposure. FDRR typically outperforms when interest rates are increasing, while SCHD performs more consistently across all rate environments.
Rising Rate Environment
FDRR Advantage: Financials and cyclicals benefit from higher rates and economic growth.
Stable Rate Environment
SCHD Advantage: Quality dividend payers provide steady income and growth.
Falling Rate Environment
SCHD Advantage: Defensive sectors and quality companies perform better.
Dividend Analysis
SCHD Dividend Profile
Higher current yield with quality growth. Focus on financially healthy companies with strong dividend histories.
FDRR Dividend Profile
Moderate yield with rate-sensitive characteristics. Focus on companies benefiting from economic expansion and higher rates.
Sector Allocation
SCHD Sectors
FDRR Sectors
Top 5 Holdings
SCHD Top Holdings
FDRR Top Holdings
Investment Recommendation
🛡️ Choose SCHD If:
- You want higher current income (3.27% vs 2.85%)
- Better total returns are important (11.2% vs 10.5%)
- Lower expenses matter (0.06% vs 0.29%)
- You prefer quality screens for financial health
- You want balanced sector exposure
- Rate-neutral approach fits your outlook
- Lower volatility is a priority (beta 0.85 vs 0.95)
📈 Choose FDRR If:
- You expect rising interest rates
- You want rate-sensitive exposure
- Heavy financials allocation aligns with your view
- Economic expansion is your base case
- You want cyclical sector exposure
- Rate-hedging characteristics are valuable
- You're comfortable with higher rate sensitivity