What does the expense ratio mean when comparing FHLC and SCHD?

The expense ratio is an annual fee charged by the fund to cover management costs. FHLC has a 0.08% expense ratio, while SCHD has a 0.06% ratio. This means SCHD is 0.02 percentage points cheaper to hold. These fees are deducted from the fund's assets, not billed directly to investors, and lower fees can leave more of your money invested, assuming all else is equal.

Why does fund size matter for ETFs like FHLC and SCHD?

FHLC has $3.5 billion in net assets, while SCHD has $112.8 billion. Larger funds generally benefit from economies of scale, which can support lower tracking errors and stable operations. Higher asset bases may also indicate strong investor demand and potential liquidity, allowing trades to occur closer to the fund's net asset value. Smaller funds remain investable, but scale differences should be noted.

How do FHLC and SCHD differ in their market focus?

FHLC is a healthcare sector ETF, investing in companies within the healthcare industry. SCHD is a large value dividend equity ETF, focusing on companies that pay consistent dividends and are classified as value-oriented. They serve different purposes: FHLC provides exposure to a specific sector's performance, whereas SCHD targets broad market segments with income-generation criteria. Their underlying strategies are fundamentally distinct.

What are the dividend yields of FHLC and SCHD?

FHLC has a 1.24% dividend yield, and SCHD has a 3.11% dividend yield. SCHD's yield is higher by 1.87 percentage points. Dividend yield estimates the annual cash payout as a percentage of the fund's price. For income-focused investors, a higher yield is often attractive, though it reflects the payout relative to price and does not guarantee total return.

Do FHLC and SCHD hold the same stocks?

There is some overlap in the top ten holdings, including MRK, UNH, AMGN, and ABT. However, FHLC is heavily concentrated in healthcare stocks, with LLY at 12.86% and JNJ at 9.07%. SCHD includes these healthcare names but also features consumer staples, energy, and telecom stocks. Their portfolios are similar only in the healthcare component, not in overall composition.

What is the inception history of these funds?

FHLC was launched on 21 October 2013, while SCHD was launched on 20 October 2011. SCHD has a longer operating history by approximately two years. A longer track record allows investors to observe how the fund has performed across more market cycles. Both funds have been active for over five years, providing a reasonable period of operational history for analysis.

How does sector diversification differ between the two ETFs?

FHLC is a single-sector fund focused entirely on healthcare, offering deep exposure but limited diversification outside that industry. SCHD is a broad equity fund that spans multiple sectors, including consumer staples, energy, and healthcare. While SCHD holds healthcare stocks, they represent a smaller portion of the portfolio compared to FHLC, offering different risk and return profiles for market participants.

What top holdings define FHLC's healthcare exposure?

FHLC's largest holding is LLY at 12.86%, followed by JNJ at 9.07% and ABBV at 6.50%. These positions define the fund's specific bias within the healthcare sector. In contrast, SCHD's largest holding is MRK at 4.89%, which is also held by FHLC but represents a much smaller slice of SCHD's portfolio. This highlights FHLC's concentrated sector approach versus SCHD's broader distribution.

Which investing goal is FHLC typically associated with?

FHLC is typically associated with investors seeking targeted exposure to the healthcare sector. This may appeal to those who believe in the sector's growth potential or want to adjust their portfolio's sector allocation. It is less focused on broad market coverage and more on specific industry performance. Investors using this fund are usually looking for healthcare sector returns rather than general market returns.

Which investing goal is SCHD typically associated with?

SCHD is typically associated with income generation and value investing. With a 3.11% dividend yield and a focus on companies with sustainable dividends, it appeals to investors prioritising regular cash flow. It provides broad exposure to large-cap value stocks rather than a single sector. This approach suits those looking for income and relative stability compared to high-growth sector funds.

Is this comparison financial advice?

No, this content is for educational purposes only and does not constitute financial advice. The comparisons between FHLC and SCHD are based on factual data regarding fees, yields, holdings, and fund structures. Investing involves risk, including possible loss of principal. Investors should consider their personal financial circumstances, risk tolerance, and goals before making any investment decisions and consult a qualified professional if needed.

FHLC vs SCHD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

This page compares FHLC (Fidelity MSCI Health Care ETF) and SCHD (US Dividend Equity ETF Schwab), reviewing fees, holdings, dividends and how each fund tracks its market. FHLC targets healthcare, while SCHD focuses on large value dividend equities, with four shared top-10 holdings. Educational content, not financial advice.

This page compares FHLC (Fidelity MSCI Health Care ETF) and SCHD (US Dividend Equity ETF Schwab), reviewing fees, holdings, dividends and how each fund tracks its market. FHLC targets healthcare, whil...

Fund Snapshot

Key Fund Metrics

FHLC

Metric

SCHD

0.08%

Expense Ratio

0.06%

1.24%

Dividend Yield

3.11%

$3.48B

Net Assets

$112.77B

349

Holdings

102

Oct 21, 2013

Inception Date

Oct 20, 2011

–

Index Tracked

–

Health

Fund Category

Large Value

SCHD costs about $2.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FHLC	SCHD
MRKMerck & Co., Inc.	5.07%	4.89%
UNHUnitedHealth Group Incorporated	4.75%	3.80%
AMGNAmgen Inc.	2.86%	4.28%
ABTAbbott Laboratories	2.48%	4.48%

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Investment Analysis

FHLC

Pros

FHLC offers sector diversification with a low 0.08% expense ratio and 1.24% dividend yield.
It provides broad exposure to healthcare with a 12.86% top holding and $3.5 billion assets.
Inception in October 2013 means it has operated for over five years and is managed by Fidelity.

Considerations

The 0.08% expense ratio exceeds SCHD's 0.06%.
FHLC has $3.5 billion in net assets, which is smaller than SCHD's $112.8 billion.
The 1.24% dividend yield is lower than SCHD's 3.11%.

SCHD

Pros

SCHD provides a lower 0.06% expense ratio, which is favourable compared to FHLC's 0.08%.
SCHD has $112.8 billion in assets, providing scale and potential for better liquidity compared to FHLC.
The fund offers a 3.11% dividend yield, higher than FHLC's 1.24%, attracting income-seeking investors.

Considerations

SCHD's top holding, Merck at 4.89%, lacks healthcare sector diversification like FHLC's 12.86% Eli Lilly.
The fund has shared top-10 holdings with FHLC but lacks healthcare's high growth prospects.
While SCHD was launched in 2011, its size and structure are better suited for income than FHLC's sector focus.

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About FHLC and SCHD

FHLC (FHLC)

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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