MCOW vs SCHD
Pacer S&P MidCap 400 Quality FCF Aristocrats ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | MCOW | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.06% | |
| AUM | $1M | $108.7B | |
| Dividend Yield | 0.21% | 3.13% | |
| Holdings | 79 | 104 | |
| YTD Return | +11.58% | +27.67% | |
| 1Y Return | +8.04% | +31.26% | |
| 3Y Return (annualized) | - | +16.66% | |
| 5Y Return (annualized) | - | +10.18% | |
| Volatility (annualized) | 14.3% | 13.6% | |
| Max Drawdown | -15.1% | -33.4% | |
| Fund Family | Pacer ETFs | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 27, 2025 | Oct 20, 2011 |
MCOW vs SCHD Performance
Pacer S&P MidCap 400 Quality FCF Aristocrats ETF (MCOW) is a ETF from Pacer ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MCOW returned +8.04% while SCHD returned +31.26%. Year to date, MCOW is up 11.58% versus a gain of 27.67% for SCHD.
Risk: Volatility and Drawdowns
MCOW has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 13.6% 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 -15.1% for MCOW and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCOW charges 0.49% per year while SCHD charges 0.06%. On a $10,000 position that is $49 vs $6 annually, a gap of $43 per year that compounds over a long holding period. On income, MCOW currently yields 0.21% against 3.13% for SCHD.
Holdings Overlap
MCOW and SCHD share 3 holdings out of 175 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MCOW or SCHD?
MCOW has an expense ratio of 0.49% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, MCOW or SCHD?
Over the past year MCOW returned +8.04% vs +31.26% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, MCOW or SCHD?
MCOW has been the more volatile fund at 14.3% annualized versus 13.6% for SCHD. Worst drawdown: MCOW -15.1% vs SCHD -33.4%.
Should I hold both MCOW and SCHD?
MCOW and SCHD have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCOW and SCHD?
MCOW and SCHD share 3 common holdings with a 0.6% weight overlap. Combined, they hold 175 unique securities.
Which pays a higher dividend, MCOW or SCHD?
MCOW yields 0.21% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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