Wealthy PotFXAIX vs SCHD: The Whole S&P 500 or a Dividend Screen
FXAIX is Fidelity's S&P 500 index mutual fund at 0.015% a year. SCHD is Schwab's U.S. Dividend Equity ETF at 0.06%: about 100 dividend-paying companies picked by a screen for dividend history, yield and financial strength. They barely overlap. On our match of both funds' 31 May 2026 holdings, almost all of SCHD (94.9%) is in S&P 500 companies, but those companies are only 7.7% of FXAIX. SCHD pays far more income, with a 3.37% SEC yield. FXAIX has returned more over long periods: 15.36% a year over the ten years to 31 August 2026 against 13.17% for SCHD. SCHD led over the latest year. That is a record, not a promise.
Table of Contents
The Short Answer
- Overlap: 7.7%. 46 companies are in both. They make up 94.9% of SCHD but only 7.7% of FXAIX, because FXAIX's biggest holdings (NVIDIA, Apple, Alphabet, Microsoft, Amazon) are not in SCHD at all. Both funds' holdings are dated 31 May 2026.
- Fees: FXAIX 0.015%, SCHD 0.06%. $1.50 against $6 a year on $10,000.
- Income: SCHD's 30-day SEC yield was 3.37% on 1 October 2026. FXAIX paid $2.648 a share in 2025, roughly 1% of its current price.
- Ten years to 31 August 2026: FXAIX 15.36% a year, SCHD 13.17%. Over five years: 12.78% against 10.01%. Over the latest year SCHD led, 29.45% against 20.36%.
- Different sectors. About a third of FXAIX is information technology. SCHD is led by health care, consumer staples and energy, with about 9% in technology.
- Similar worst quarter. Both had their worst quarter in their prospectus windows in the three months to 31 March 2020: SCHD fell 21.55%, FXAIX 19.59%.
- Core or complement. FXAIX can be a whole U.S. stock holding. SCHD is a narrower income and value tilt, better suited to sit beside a broad fund.
How Much They Overlap
FXAIX normally invests "at least 80% of assets in common stocks included in the S&P 500® Index," weighted by company size. SCHD's index picks 100 companies from a broad U.S. market index that "have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios." Each must have paid dividends for at least ten years in a row, and real estate investment trusts are excluded.
Our Portfolio Overlap Checker puts the overlap at 7.7%, adding up the smaller weight of each of the 46 shared companies. Both holdings reports (Form N-PORT) are dated 31 May 2026.
| Largest shared holdings | % of FXAIX | % of SCHD |
|---|---|---|
| QUALCOMM | 0.41% | 6.74% |
| Texas Instruments | 0.43% | 5.90% |
| UnitedHealth | 0.53% | 5.09% |
| Coca-Cola | 0.47% | 3.96% |
| Merck | 0.45% | 3.86% |
| Chevron | 0.53% | 3.83% |
| Verizon | 0.31% | 3.65% |
| Procter & Gamble | 0.51% | 3.55% |
The two funds give the same companies very different weights. SCHD puts 4% to 7% in each of its top names; FXAIX holds each at about half a percent. 92% of FXAIX is in companies SCHD does not own, led by NVIDIA (7.89%), Apple (7.05%), Alphabet (6.11%), Microsoft (5.14%) and Amazon (4.07%). In the other direction, about 5% of SCHD was in mid-size companies outside the S&P 500, such as East West Bancorp and Watsco.
FXAIX vs SCHD Side by Side
| FXAIX | SCHD | |
|---|---|---|
| Full name | Fidelity 500 Index Fund | Schwab U.S. Dividend Equity ETF |
| Index | S&P 500 | Dow Jones U.S. Dividend 100 Index |
| Expense ratio | 0.015% | 0.06% |
| Prospectus cost example, $10,000 over 10 years | $19 | $77 |
| Type | Mutual fund, priced once a day | ETF, trades all day |
| Minimum | None | One share, unless your broker sells fractions |
| Holdings | 508 (31 Aug 2026) | 102 (2 Oct 2026) |
| Ten largest companies | 37.8% (31 Aug 2026) | 41.6% (2 Oct 2026) |
| 30-day SEC yield | Not published on the Fidelity pages we read | 3.37% (1 Oct 2026) |
| Information technology | 32.5% (28 Feb 2026) | 9.2% (30 Jun 2026) |
| Health care | 9.8% | 20.7% |
| Consumer staples | 5.4% | 20.4% |
| Energy | 3.5% | 14.1% |
| Financials | 12.5% | 10.1% |
| Portfolio turnover | 3% | 30% (prospectus); 39.60% on Schwab's page for the year to 31 Aug 2026 |
| Fund size | $857.6 billion (30 Sep 2026) | $108.7 billion (2 Oct 2026) |
| Inception | 17 Feb 1988 | 20 Oct 2011 |
Returns: FXAIX Led Over Ten Years, SCHD Led the Last Year
Schwab had published SCHD's returns only to 31 August 2026 when we checked on 5 October, so we compare both funds on that date. Fidelity's page has since moved on to 30 September, so the FXAIX row comes from our reading of Fidelity's page on 29 September 2026; Schwab's S&P 500 fund and SPY show nearly identical figures for that date.
| Average annual return to 31 Aug 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| FXAIX | 20.36% | 21.03% | 12.78% | 15.36% |
| SCHD (NAV) | 29.45% | 16.18% | 10.01% | 13.17% |
| SCHD minus FXAIX | +9.09 | -4.85 | -2.77 | -2.19 |
The prospectuses give a second same-date check, for periods ended 31 December 2024:
| Average annual return to 31 Dec 2024 | 1 year | 5 years | 10 years |
|---|---|---|---|
| FXAIX | 25.00% | 14.51% | 13.09% |
| SCHD | 11.60% | 11.03% | 11.03% |
| FXAIX, after taxes on distributions | 24.61 | 14.09 | 12.55 |
| SCHD, after taxes on distributions | 10.64 | 10.10 | 10.17 |
Why FXAIX led over the decade. The biggest gains of recent years came from large technology companies that pay small dividends or none. SCHD's screen leaves most of them out, so it missed much of that run.
Why SCHD led the last year. Its mix of health care, consumer staples and energy companies had a strong twelve months to August 2026 and outpaced the technology-heavy S&P 500. Leadership between these groups changes, and neither fund can tell you which way it goes next.
| Hypothetical $10,000 held for 10 years | Ending value |
|---|---|
| At FXAIX's 10-year return (15.36%) | $41,740 |
| At SCHD's 10-year return (13.17%) | $34,460 |
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Income and Taxes
Income. On $100,000, SCHD's 3.37% SEC yield points to about $3,370 a year in dividends before tax. FXAIX paid $2.648 a share in 2025; against its $268.32 price on 2 October 2026 that is about 1.0%, or roughly $1,000 on $100,000. That figure mixes a 2025 payout with a 2026 price, so treat it as a rough guide. SCHD's prospectus says it generally declares and pays dividends quarterly.
Higher income is not higher return. A dividend is part of the total return, not an extra on top of it. Over the decade, FXAIX's total return was higher even though its income was lower.
Taxes in a brokerage account. More income means more tax each year. In the prospectus figures to 2024, taxes on distributions took about 0.86 points a year off SCHD's ten-year return and 0.54 off FXAIX's. Inside an IRA or 401(k) this does not apply.
Turnover. SCHD's index is reviewed once a year and rebalanced quarterly, and its turnover was 30% in its last prospectus against 3% for FXAIX. Trading costs from turnover are not included in the expense ratio.
Which One Fits You
You want one fund for your U.S. stocks and plan to hold for decades: FXAIX. It owns the whole large-company market, costs a quarter as much, and has the longer lead in total return.
You want cash income from your portfolio now, for example in retirement: SCHD can fit, ideally beside a broad fund rather than in place of one. Because overlap is only 7.7%, the two do not duplicate much.
You hold FXAIX and want a value or dividend tilt: a slice of SCHD adds companies FXAIX holds only lightly. Pick a target share and rebalance to it.
You are investing in a taxable account and do not need the income: FXAIX has generated less taxable income each year.
Your account is at Fidelity: FXAIX is a natural core, and SCHD trades there like any ETF. At Schwab or elsewhere: SCHD trades anywhere; for the S&P 500 side see FXAIX vs VOO or SCHD vs VOO.
Sources & Methodology
- Fidelity 500 Index Fund Summary Prospectus, 29 April 2026: the 0.015% fee table, strategy, turnover and best and worst quarters.
- FXAIX Summary Prospectus, 29 April 2025: returns to 31 December 2024.
- Fidelity Concord Street Trust, Form N-CSR for the year ended 28 February 2026: FXAIX's sector weights.
- Fidelity's FXAIX performance page and summary page: returns, dividend history, holdings, size and price.
- Schwab Strategic Trust, Form 485BPOS filed 22 December 2025: SCHD's 0.06% fee table, index rules, turnover, returns to 31 December 2024 and best and worst quarters.
- Schwab's SCHD page: returns to 31 August 2026, SEC yield, holdings, sectors, size and turnover.
- FXAIX Form N-PORT for 31 May 2026 and SCHD Form N-PORT for 31 May 2026: the holdings behind the overlap.
How the overlap was computed. The Portfolio Overlap Checker sums the smaller of the two weights for each company held by both funds; both filings are dated 31 May 2026. Our SCHD vs SPY page shows 7.6% because it uses S&P 500 weights from a June filing. Tax drag is the before-tax return minus the after-tax-on-distributions return, our arithmetic.
What we could not verify. SCHD's calendar-year returns appear only as a chart image in its prospectus. We did not find a 30-day SEC yield for FXAIX on Fidelity's pages, so its income figure is our rough estimate. The FXAIX returns to 31 August 2026 could not be re-read on 5 October because Fidelity's page had moved to 30 September.
This article is for general education and is not investment, tax or legal advice. Past performance does not guarantee future results, and all investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026 unless dated otherwise; verify current figures with each fund company before acting.
FAQ: FXAIX vs SCHD
Is SCHD better than FXAIX?
For income, SCHD pays much more: a 3.37% SEC yield. For total return, FXAIX has led over three, five and ten years to 31 August 2026, while SCHD led over the latest year. They do different jobs.
How much do FXAIX and SCHD overlap?
7.7% on our match of both funds' 31 May 2026 holdings. Nearly all of SCHD is in S&P 500 companies, but those companies are a small slice of FXAIX.
Should I hold both FXAIX and SCHD?
You can. Because they overlap so little, SCHD shifts your mix toward health care, consumer staples and energy and away from technology. Decide the share on purpose.
Which is cheaper?
FXAIX, at 0.015% against 0.06%: $1.50 against $6 a year on $10,000.
Does SCHD hold Apple or Microsoft?
Not in its 31 May 2026 holdings. Its screen favors dividend payers with high yields and strong financial ratios, which leaves out most large technology companies.
Which is better in a Roth IRA?
Inside a Roth, dividends are not taxed, so SCHD's higher income costs nothing extra in tax. The choice comes down to whether you want the broad market or a dividend and value tilt.
Which is better for retirees?
SCHD produces more cash without selling shares. FXAIX has produced more total return, and selling a few shares can also fund spending. Neither holds bonds, so neither is a full retirement portfolio on its own.
Cite This Page
Journalists, educators and bloggers are welcome to cite this comparison. Please link back so readers can reach the underlying filings.
"FXAIX vs SCHD: The Whole S&P 500 or a Dividend Screen." Wealthy Pot, 2026. https://wealthypot.com/fxaix-vs-schd/
Related comparisons: SCHD vs VOO · SCHD vs SPY · SCHD vs VTI · SCHG vs SCHD · FXAIX vs VOO · FXAIX vs QQQ · All ETF comparisons
