MDIV vs SCHD
First Trust Multi-Asset Diversified Income Index Fund vs Schwab US Dividend Equity ETF
Which is better, MDIV or SCHD?
Equity-oriented Balanced against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
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 | MDIV | SCHD |
|---|---|---|
| Expense Ratio | 0.75% | 0.06%Best |
| AUM | $411M | $111.6B |
| Dividend Yield | 7.05% | 3.24% |
| Holdings | 248 | 206 |
| YTD Return | +6.20% | +24.55%Best |
| 1Y Return | +7.54% | +29.85%Best |
| 3Y Return (annualized) | +9.65% | +16.64%Best |
| 5Y Return (annualized) | +5.39% | +9.54%Best |
| Volatility (annualized) | 13.5%Best | 14.0% |
| Max Drawdown | -57.0% | -33.4%Best |
| $10,000 over 5 years | $13,002 | $15,771Best |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Equity-oriented Balanced | Large Cap Value |
| Inception | Aug 13, 2012 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 14, 2012 to Oct 14, 2026 (14.2 years).
MDIV 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 14.2 years both funds cover.
MDIV vs SCHD Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MDIV returned +7.54% while SCHD returned +29.85%. Year to date, MDIV is up 6.20% versus a gain of 24.55% for SCHD.
Over three years, MDIV compounded at +9.65% per year against +16.64% for SCHD; over five years the annualized figures are +5.39% and +9.54% respectively. Across the full 14-year window we track, SCHD has the edge at +10.85% annualized vs +0.83%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.0% compared with 13.5% for MDIV. 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 -57.0% for MDIV and -33.4% 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MDIV charges 0.75% per year while SCHD charges 0.06%. On a $10,000 position that is $75 vs $6 annually, a gap of $69 per year that compounds over a long holding period. On income, MDIV currently yields 7.05% against 3.24% for SCHD.
Holdings Overlap
At least 22.2% of SCHD's money is in holdings MDIV also owns.
Stated as a floor: for MDIV, our book for it covers 86.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and MDIV share little of their money.
13 positions in common, counted across the 107 positions we hold weights for in MDIV and 98 in SCHD, against full books of 248 and 206.
Top Shared Holdings
| Stock | Weight in MDIV | Weight in SCHD | Difference |
|---|---|---|---|
| CVXChevron Corp | 0.36% | 4.14% | 3.78% |
| VZVerizon Communic | 0.55% | 3.88% | 3.33% |
| PEPPepsico Inc. | 0.37% | 3.80% | 3.43% |
| BMYBristol-Myers Squibb Co. | 0.35% | 3.21% | 2.86% |
| MOAltria Group Inc | 0.61% | 2.89% | 2.28% |
| OKEOneok Inc. | 0.43% | 1.42% | 0.99% |
| KMBKimberly-Clark Corp. | 0.41% | 0.81% | 0.40% |
| TROWT Rowe Price Grp | 0.43% | 0.57% | 0.14% |
| GISGeneral Mills In | 0.53% | 0.44% | 0.09% |
| RFRegions Financia | 0.31% | 0.59% | 0.28% |
22.2% of SCHD is already inside MDIV.
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, MDIV or SCHD?
MDIV has an expense ratio of 0.75% while SCHD charges 0.06%. SCHD is the cheaper option, by $69 a year on a $10,000 investment.
Which performed better, MDIV or SCHD?
Over the past year MDIV returned +7.54% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +0.83% vs +10.85% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MDIV or SCHD?
SCHD has been the more volatile fund at 14.0% annualized versus 13.5% for MDIV. Worst drawdown: MDIV -57.0% vs SCHD -33.4%.
Should I hold both MDIV and SCHD?
MDIV and SCHD have a monthly-return correlation of 0.80, 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 MDIV and SCHD?
At least 22.2% of SCHD's money is in holdings MDIV also owns. Our book for MDIV is partial, so the real figure is this or higher. They hold 13 positions in common, counted across the 107 positions we hold weights for in MDIV and 98 in SCHD.
Which pays a higher dividend, MDIV or SCHD?
MDIV yields 7.05% while SCHD yields 3.24%, so MDIV currently pays the higher dividend yield.
Is SCHD better than MDIV?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.