SCHX vs USMC
Schwab US Large-Cap ETF vs Principal U.S. Mega-Cap ETF
Which is better, SCHX or USMC?
Nearly the same fund. SCHX costs less.
SCHX has a lower expense ratio. SCHX led over 1Y and 3Y, USMC over 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. SCHX is less concentrated, with 36.9% of the fund in its ten largest positions against 55.3%.
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 | SCHX | USMC |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.12% |
| AUM | $75.3B | $5.2B |
| Dividend Yield | 1.04% | 0.74% |
| Holdings | 752 | 58 |
| YTD Return | +13.08% | +13.98%Best |
| 1Y Return | +16.62%Best | +14.91% |
| 3Y Return (annualized) | +22.27%Best | +22.22% |
| 5Y Return (annualized) | +12.56% | +14.81%Best |
| Volatility (annualized) | 16.3% | 15.3%Best |
| Max Drawdown | -34.3% | -30.0%Best |
| $10,000 over 5 years | $18,068 | $19,948Best |
| Top 10 Weight | 36.9%Best | 55.3% |
| Fund Family | Charles Schwab Asset Management | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 3, 2009 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Oct 14, 2026 (9 years).
SCHX vs USMC 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 9 years both funds cover.
SCHX vs USMC Performance
Schwab US Large-Cap ETF (SCHX) is an ETF from Charles Schwab Asset Management and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year SCHX returned +16.62% while USMC returned +14.91%. Year to date, SCHX is up 13.08% versus a gain of 13.98% for USMC.
Over three years, SCHX compounded at +22.27% per year against +22.22% for USMC; over five years the annualized figures are +12.56% and +14.81% respectively. Across the full 9-year window we track, USMC has the edge at +14.29% annualized vs +13.87%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHX has been the more volatile fund, with annualized monthly volatility of 16.3% compared with 15.3% for USMC. 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 -34.3% for SCHX and -30.0% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCHX charges 0.03% per year while USMC charges 0.12%. On a $10,000 position that is $3 vs $12 annually, a gap of $9 per year that compounds over a long holding period. On income, SCHX currently yields 1.04% against 0.74% for USMC.
Holdings Overlap
47.1% of SCHX's money is in holdings USMC also owns. 99.7% of USMC's money is in holdings SCHX also owns.
Most of USMC is already inside SCHX. Owning both mostly buys the same companies twice.
26 positions in common, counted across the 752 positions we hold weights for in SCHX and 27 in USMC, against full books of 752 and 58.
What only one of them owns
Our book lists 1 positions for USMC that do not appear in our book for SCHX (0.2% of the fund), and 703 for SCHX that do not appear in USMC (52.1%).
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 SCHX | Weight in USMC | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.02% | 7.99% | 0.03% |
| AAPLApple, Inc | 6.90% | 7.40% | 0.50% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.44% | 5.55% | 0.11% |
| MUMicron Technology, Inc. | 1.72% | 7.18% | 5.46% |
| GOOGLAlphabet Inc Cap Stk Cl A | 2.86% | 5.33% | 2.47% |
| AMZNAmazon.Com Inc | 3.50% | 3.77% | 0.27% |
| AVGOBroadcom Inc | 2.40% | 4.44% | 2.04% |
| METAMeta Platform Inc | 2.28% | 3.92% | 1.64% |
| JPMJpmorgan Chase | 1.25% | 4.65% | 3.40% |
| VVisa Inc-class A Shares | 0.87% | 4.54% | 3.67% |
99.7% of USMC is already inside SCHX.
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, SCHX or USMC?
SCHX has an expense ratio of 0.03% while USMC charges 0.12%. SCHX is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, SCHX or USMC?
Over the past year SCHX returned +16.62% vs +14.91% for USMC, so SCHX leads on 1-year performance. Over the longest common window we track (9 years), SCHX annualized +13.87% vs +14.29% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHX or USMC?
SCHX has been the more volatile fund at 16.3% annualized versus 15.3% for USMC. Worst drawdown: SCHX -34.3% vs USMC -30.0%.
Should I hold both SCHX and USMC?
SCHX and USMC have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between SCHX and USMC?
99.7% of USMC's money is in holdings SCHX also owns. 99.7% of USMC's is in holdings SCHX also owns. They hold 26 positions in common, counted across the 752 positions we hold weights for in SCHX and 27 in USMC.
Which pays a higher dividend, SCHX or USMC?
SCHX yields 1.04% while USMC yields 0.74%, so SCHX currently pays the higher dividend yield.
Is USMC better than SCHX?
SCHX has a lower expense ratio. SCHX led over 1Y and 3Y, USMC over 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. SCHX is less concentrated, with 36.9% of the fund in its ten largest positions against 55.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.