MFEM vs SCHD
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 704 holdings.
Side-by-Side Comparison
| Metric | MFEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.06% | |
| AUM | $142M | $103.7B | |
| Dividend Yield | 2.14% | 3.31% | |
| Holdings | 730 | 104 | |
| YTD Return | +21.89% | +25.58% | |
| 1Y Return | +33.23% | +31.06% | |
| 3Y Return (annualized) | +20.02% | +15.55% | |
| 5Y Return (annualized) | +8.45% | +9.61% | |
| Volatility (annualized) | 17.7% | 13.6% | |
| Max Drawdown | -45.3% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 31, 2017 | Oct 20, 2011 |
MFEM vs SCHD Performance
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) 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 MFEM returned +33.23% while SCHD returned +31.06%. Year to date, MFEM is up 21.89% versus a gain of 25.58% for SCHD.
Over three years, MFEM compounded at +20.02% per year against +15.55% for SCHD; over five years the annualized figures are +8.45% and +9.61% respectively. Across the full 9-year window we track, SCHD has the edge at +11.46% annualized vs +6.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -45.3% for MFEM 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MFEM 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, MFEM currently yields 2.14% against 3.31% for SCHD.
Holdings Overlap
MFEM and SCHD share 0 holdings out of 804 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MFEM or SCHD?
MFEM 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, MFEM or SCHD?
Over the past year MFEM returned +33.23% vs +31.06% for SCHD, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +6.87% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, MFEM or SCHD?
MFEM has been the more volatile fund at 17.7% annualized versus 13.6% for SCHD. Worst drawdown: MFEM -45.3% vs SCHD -33.4%.
Should I hold both MFEM and SCHD?
MFEM and SCHD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MFEM and SCHD?
MFEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 804 unique securities.
Which pays a higher dividend, MFEM or SCHD?
MFEM yields 2.14% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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