What are the primary expense ratio differences between FSTA and SCHD?

FSTA charges an expense ratio of 0.08%, whereas SCHD charges 0.06%. While this seems like a minute difference, over time, lower fees can contribute to slightly higher net returns, assuming all other factors remain equal. The 0.02% difference is statistically small but reflects a slight cost advantage for SCHD in terms of pure expense efficiency. Both funds are generally considered low-cost compared to active mutual funds, yet the variance can be notable for long-term hold strategies where compounding costs accumulate.

How do the index tracking methodologies differ for these two ETFs?

FSTA is designed to track the MSCI Consumer Staples Index, focusing specifically on companies that produce essential goods. In contrast, SCHD tracks the Dow Jones U.S. Dividend 100 Index, selecting companies with a history of consistent dividend growth across various sectors. Neither fund is actively managed in the traditional sense; they follow specific rules set by their respective index providers. It is worth noting that the exact current index tracking details for both are not available in the provided data, though their primary focus areas are well-established.

What are the overlapping holdings between FSTA and SCHD?

Procter & Gamble (PG) and Coca-Cola (KO) appear in the top ten holdings of both funds. In FSTA, these constitute significant weightings of 9.77% and 9.74% respectively, reflecting their core status in consumer staples. In SCHD, their weights are lower at 4.02% and 4.27%, as they are part of a broader dividend-focused portfolio. This overlap provides exposure to stable, large-cap companies in both cases, but their impact on the overall portfolio varies significantly based on each fund’s sector distribution.

How do the dividend yields compare between the two funds?

SCHD currently offers a dividend yield of 3.11%, which is higher than FSTA’s yield of 2.27%. This difference reflects SCHD’s specific focus on dividend equity, often targeting companies with stronger payout histories and yields. FSTA, while offering income, focuses more on defensive stability within the consumer staples sector, where yields might be modest but the demand for the underlying products is consistent regardless of economic cycles. Investors often look at SCHD for higher income generation relative to FSTA’s sector focus.

What is the asset under management difference between FSTA and SCHD?

SCHD manages $112.8 billion in net assets, indicating very large scale and potentially high liquidity for traders. In contrast, FSTA manages $1.4 billion, which is smaller by comparison. Both figures reflect the funds' respective levels of investor adoption, with SCHD being a significantly larger vehicle within the ETF market.

What risks do the top holding concentrations represent?

For FSTA, the top two holdings, Walmart (13.85%) and Costco (11.57%), represent over 25% of the fund's assets, creating a concentration in two specific retailers. SCHD is less concentrated in its top names, with Merck at 4.89% and Abbott Laboratories at 4.48%. However, both funds carry the risk that if their top holdings underperform due to company-specific issues, the entire fund’s performance could be negatively impacted, with FSTA being potentially more sensitive to consumer retail trends.

How do sector weights influence the risk profile of these ETFs?

Sector allocation is a critical determinant of an ETF's behaviour during different market conditions. FSTA focuses strictly on the consumer staples sector, often considered defensive as investors continue to buy essentials like food and household goods even in downturns. SCHD spans multiple sectors but focuses on large-cap value stocks with reliable dividends. While the exact current sector weights for both are not available in the dataset, their underlying categories suggest that FSTA has lower sector variance, whereas SCHD offers broader diversification across industrial, healthcare, and financial segments.

How are distributions handled for these ETFs?

ETFs like FSTA and SCHD typically distribute a portion of the income they generate from their underlying holdings to shareholders. This usually happens quarterly for these funds. When a company pays a dividend to the ETF, the fund aggregates these payments and then distributes them to ETF holders. These distributions are not guaranteed and can fluctuate based on the performance and dividend policies of the companies held within the fund, such as PG, KO, MRK, or CVX.

Which ETF aligns with a large value investing style?

SCHD falls under the 'Large Value' category, meaning it seeks out established companies that are potentially undervalued relative to their earnings or assets, with a strong focus on dividend-paying stocks. FSTA falls under 'Consumer Defensive', which is based on sector stability rather than a pure value or growth style. For an investor specifically looking for value-oriented large-cap exposure, SCHD’s methodology and category classification are more aligned with that goal.

How does the fund inception date impact long-term tracking history?

SCHD was launched on 20 October 2011, giving it a longer performance track record compared to FSTA, which began trading on 21 October 2013. A longer history can sometimes provide more data for investors to analyse how the fund performed across different market cycles. However, inception date alone does not predict future results; both funds have over a decade of operational history, allowing for a reasonable assessment of their volatility and dividend distributions over that period.

Do these ETFs track the same index?

The Fidelity MSCI Consumer Staples ETF (FSTA) and the US Dividend Equity ETF (SCHD) track different indices. SCHD tracks a dividend equity index, while FSTA tracks a consumer staples index. This fundamental difference in their underlying benchmarks means their holdings and performance drivers will vary significantly, despite some overlap in individual stocks.

What are the main differences in the top holdings between FSTA and SCHD?

FSTA is heavily concentrated in retail and consumer products, with top holdings including Walmart (WMT), Costco (COST), Procter & Gamble (PG), and Coca-Cola (KO). SCHD features a more diversified set of value-oriented dividend payers, such as Merck (MRK), Chevron (CVX), and Verizon (VZ).

FSTA vs SCHD

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

Compare Fidelity MSCI Consumer Staples ETF and US Dividend Equity ETF Schwab. This page outlines key differences in expense ratios, top holdings, dividend yields, and how each fund tracks its respective market, helping you evaluate these exchange-traded funds side by side. Educational content, not financial advice.

Compare Fidelity MSCI Consumer Staples ETF and US Dividend Equity ETF Schwab. This page outlines key differences in expense ratios, top holdings, dividend yields, and how each fund tracks its respecti...

Fund Snapshot

Key Fund Metrics

FSTA

Metric

SCHD

0.08%

Expense Ratio

0.06%

2.27%

Dividend Yield

3.11%

$1.41B

Net Assets

$112.77B

99

Holdings

102

Oct 21, 2013

Inception Date

Oct 20, 2011

–

Index Tracked

–

Consumer Defensive

Fund Category

Large Value

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

Shared Top Holdings

Holding	FSTA	SCHD
PGThe Procter & Gamble Company	9.77%	4.02%
KOThe Coca-Cola Company	9.74%	4.27%

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Investment Analysis

FSTA

Pros

The fund offers a very low expense ratio of 0.08%, reducing ongoing investment costs significantly.
Investors receive a dividend yield of 2.27%, which is competitive for this sector.
The fund provides exposure to stable companies like Walmart and Costco, offering defensive characteristics.

Considerations

Assets under management are $1.4 billion, which is smaller than many peers and may indicate lower liquidity.
The top ten holdings represent a large portion of assets, suggesting concentration risk within the fund.
Dividend yield is lower compared to other dividend-focused ETFs, potentially limiting income generation.

SCHD

Pros

The fund has a low expense ratio of 0.06%, making it cost-efficient for investors.
Assets under management are $112.8 billion, indicating strong liquidity and institutional adoption.
The fund provides a high dividend yield of 3.11%, appealing to income-focused investors.

Considerations

The top ten holdings, such as Merck and Abbott Laboratories, represent concentration risk within the fund.
The fund's focus on large-value stocks may underperform during growth-oriented market phases.
Index methodology and sector weights are not available, limiting transparency into portfolio construction details.

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