MGC vs SCHD
Vanguard Morningstar Mega Cap ETF vs Schwab US Dividend Equity ETF
Which is better, MGC or SCHD?
Large Cap Blend against Large Cap Value.
MGC has a lower expense ratio. MGC led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 45.5%.
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 | MGC | SCHD |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.06% |
| AUM | $10.3B | $111.6B |
| Dividend Yield | 0.92% | 3.24% |
| Holdings | 175 | 206 |
| YTD Return | +14.07% | +24.55%Best |
| 1Y Return | +18.28% | +29.85%Best |
| 3Y Return (annualized) | +23.73%Best | +16.64% |
| 5Y Return (annualized) | +14.05%Best | +9.54% |
| Volatility (annualized) | 14.0% | 13.7%Best |
| Max Drawdown | -33.1%Best | -33.4% |
| $10,000 over 5 years | $19,296Best | $15,771 |
| Top 10 Weight | 45.5% | 41.6%Best |
| Fund Family | Vanguard (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Dec 17, 2007 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 14, 2026 (15 years).
MGC 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 15 years both funds cover.
MGC vs SCHD Performance
Vanguard Morningstar Mega Cap ETF (MGC) is an ETF from Vanguard (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MGC returned +18.28% while SCHD returned +29.85%. Year to date, MGC is up 14.07% versus a gain of 24.55% for SCHD.
Over three years, MGC compounded at +23.73% per year against +16.64% for SCHD; over five years the annualized figures are +14.05% and +9.54% respectively. Across the full 15-year window we track, MGC has the edge at +14.24% annualized vs +11.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MGC has been the more volatile fund, with annualized monthly volatility of 14.0% compared with 13.7% for SCHD. 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 -33.1% for MGC 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MGC charges 0.05% per year while SCHD charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, MGC currently yields 0.92% against 3.24% for SCHD.
Holdings Overlap
8.1% of MGC's money is in holdings SCHD also owns. 75.2% of SCHD's money is in holdings MGC also owns.
Most of SCHD is already inside MGC. Owning both mostly buys the same companies twice.
22 positions in common, counted across the 172 positions we hold weights for in MGC and 98 in SCHD, against full books of 175 and 206.
What only one of them owns
Our book lists 75 positions for SCHD that do not appear in our book for MGC (24.6% of the fund), and 149 for MGC that do not appear in SCHD (91.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in MGC | Weight in SCHD | Difference |
|---|---|---|---|
| TXNTexas Instrument Inc | 0.44% | 4.89% | 4.45% |
| QCOMQualcomm Inc. | 0.33% | 4.61% | 4.28% |
| CVXChevron Corp | 0.72% | 4.14% | 3.42% |
| PGProcter & Gamble Company | 0.62% | 4.16% | 3.54% |
| MRKMerck & Company Inc | 0.67% | 4.04% | 3.37% |
| KOCoca Cola Co. | 0.56% | 4.12% | 3.56% |
| UNHUnitedhealth Group Incorporated | 0.65% | 3.95% | 3.30% |
| HDHome Depot Inc/The | 0.60% | 3.77% | 3.17% |
| AMGNAmgen Inc. | 0.43% | 3.86% | 3.43% |
| VZVerizon Communic | 0.35% | 3.88% | 3.53% |
75.2% of SCHD is already inside MGC.
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, MGC or SCHD?
MGC has an expense ratio of 0.05% while SCHD charges 0.06%. MGC is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, MGC or SCHD?
Over the past year MGC returned +18.28% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MGC annualized +14.24% vs +11.26% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MGC or SCHD?
MGC has been the more volatile fund at 14.0% annualized versus 13.7% for SCHD. Worst drawdown: MGC -33.1% vs SCHD -33.4%.
Should I hold both MGC and SCHD?
MGC and SCHD have a monthly-return correlation of 0.81, 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 MGC and SCHD?
75.2% of SCHD's money is in holdings MGC also owns. 75.2% of SCHD's is in holdings MGC also owns. They hold 22 positions in common, counted across the 172 positions we hold weights for in MGC and 98 in SCHD.
Which pays a higher dividend, MGC or SCHD?
MGC yields 0.92% while SCHD yields 3.24%, so SCHD currently pays the higher dividend yield.
Is SCHD better than MGC?
MGC has a lower expense ratio. MGC led over 3Y, 5Y and the full window, SCHD over 1Y. SCHD is less concentrated, with 41.6% of the fund in its ten largest positions against 45.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.