MCR vs SCHD
MFS Charter Income Trust vs Schwab US Dividend Equity ETF
Which is better, MCR or SCHD?
Diversified Sectoral Bond against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y 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 | MCR | SCHD |
|---|---|---|
| Expense Ratio | 1.02% | 0.06%Best |
| AUM | $270M | $112.1B |
| Dividend Yield | 8.17% | 3.00% |
| Holdings | 1,076 | 103 |
| Volatility (annualized) | 10.8%Best | 13.6% |
| Max Drawdown | -45.2% | -33.4%Best |
| $10,000 over 14.7 years | $10,714 | $46,187Best |
| Fund Family | MFS Investment Management | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Diversified Sectoral Bond | Large Cap Value |
| Inception | Jul 20, 1989 | Oct 20, 2011 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.
The two price series end 85 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. MCR has data through Jun 18, 2026 and SCHD through Sep 11, 2026.
Volatility and max drawdown, and the $10,000 over 14.7 years row, are measured over the window both funds cover: Oct 20, 2011 to Jun 18, 2026 (14.7 years).
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 10.8% for MCR. 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 -45.2% for MCR 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 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MCR charges 1.02% per year while SCHD charges 0.06%. On a $10,000 position that is $102 vs $6 annually, a gap of $96 per year that compounds over a long holding period. On income, MCR currently yields 8.17% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 549 holdings in MCR and 100 in SCHD, totalling 90.1% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 184 days apart, MCR as of Feb 28, 2026 and SCHD as of Aug 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 549 positions we hold weights for in MCR and 100 in SCHD, against full books of 1,076 and 103.
You are not choosing between two funds in isolation.
Whichever of MCR and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MCR or SCHD?
MCR has an expense ratio of 1.02% while SCHD charges 0.06%. SCHD is the cheaper option, by $96 a year on a $10,000 investment.
Which is riskier, MCR or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 10.8% for MCR. Worst drawdown: MCR -45.2% vs SCHD -33.4%.
Should I hold both MCR and SCHD?
MCR and SCHD have a monthly-return correlation of 0.62, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MCR or SCHD?
MCR yields 8.17% while SCHD yields 3.00%, so MCR currently pays the higher dividend yield.
Is SCHD better than MCR?
SCHD has a lower expense ratio. SCHD led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.