MFDX vs SCHD
PIMCO RAFI Dynamic Multi-Factor International Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MFDX offers more diversification with 1111 holdings.
Side-by-Side Comparison
| Metric | MFDX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $451M | $103.7B | |
| Dividend Yield | 2.77% | 3.31% | |
| Holdings | 1,303 | 104 | |
| YTD Return | +11.91% | +25.58% | |
| 1Y Return | +21.54% | +31.06% | |
| 3Y Return (annualized) | +18.94% | +15.55% | |
| 5Y Return (annualized) | +10.56% | +9.61% | |
| Volatility (annualized) | 14.9% | 13.6% | |
| Max Drawdown | -39.1% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Oct 20, 2011 |
MFDX vs SCHD Performance
PIMCO RAFI Dynamic Multi-Factor International Equity ETF (MFDX) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MFDX returned +21.54% while SCHD returned +31.06%. Year to date, MFDX is up 11.91% versus a gain of 25.58% for SCHD.
Over three years, MFDX compounded at +18.94% per year against +15.55% for SCHD; over five years the annualized figures are +10.56% and +9.61% respectively. Across the full 9-year window we track, SCHD has the edge at +11.46% annualized vs +8.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFDX has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -39.1% for MFDX 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MFDX charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, MFDX currently yields 2.77% against 3.31% for SCHD.
Holdings Overlap
MFDX and SCHD share 1 holdings out of 1210 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MFDX | Weight in SCHD | Difference |
|---|---|---|---|
| ALV | 0.14% | 0.21% | 0.07% |
Frequently Asked Questions
Which is cheaper, MFDX or SCHD?
MFDX has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, MFDX or SCHD?
Over the past year MFDX returned +21.54% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), MFDX annualized +8.15% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, MFDX or SCHD?
MFDX has been the more volatile fund at 14.9% annualized versus 13.6% for SCHD. Worst drawdown: MFDX -39.1% vs SCHD -33.4%.
Should I hold both MFDX and SCHD?
MFDX and SCHD have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFDX and SCHD?
MFDX and SCHD share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1210 unique securities.
Which pays a higher dividend, MFDX or SCHD?
MFDX yields 2.77% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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