MDIV vs SCHD
First Trust Multi-Asset Diversified Income Index Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MDIV offers more diversification with 117 holdings.
Side-by-Side Comparison
| Metric | MDIV | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.06% | |
| AUM | $428M | $103.7B | |
| Dividend Yield | 6.13% | 3.31% | |
| Holdings | 125 | 104 | |
| YTD Return | +10.89% | +25.62% | |
| 1Y Return | +12.27% | +32.62% | |
| 3Y Return (annualized) | +10.81% | +15.58% | |
| 5Y Return (annualized) | +6.69% | +9.63% | |
| Volatility (annualized) | 13.6% | 13.6% | |
| Max Drawdown | -57.0% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 13, 2012 | Oct 20, 2011 |
MDIV vs SCHD Performance
First Trust Multi-Asset Diversified Income Index Fund (MDIV) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MDIV returned +12.27% while SCHD returned +32.62%. Year to date, MDIV is up 10.89% versus a gain of 25.62% for SCHD.
Over three years, MDIV compounded at +10.81% per year against +15.58% for SCHD; over five years the annualized figures are +6.69% and +9.63% respectively. Across the full 14-year window we track, SCHD has the edge at +11.47% annualized vs +1.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.6% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 0.71% per year while SCHD charges 0.06%. On a $10,000 position that is $71 vs $6 annually, a gap of $65 per year that compounds over a long holding period. On income, MDIV currently yields 6.13% against 3.31% for SCHD.
Holdings Overlap
MDIV and SCHD share 13 holdings out of 204 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MDIV or SCHD?
MDIV has an expense ratio of 0.71% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, MDIV or SCHD?
Over the past year MDIV returned +12.27% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), MDIV annualized +1.15% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, MDIV or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MDIV and SCHD?
MDIV and SCHD share 13 common holdings with a 3.8% weight overlap. Combined, they hold 204 unique securities.
Which pays a higher dividend, MDIV or SCHD?
MDIV yields 6.13% while SCHD yields 3.31%, so MDIV currently pays the higher dividend yield.
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