MFUS vs SCHD

MFUS vs SCHD

Which is better, MFUS or SCHD?

Each has led over a different period.

SCHD has a lower expense ratio. MFUS led over 3Y, 5Y and the full window, SCHD over 1Y. The two have moved almost in lockstep, correlation 0.90. MFUS is less concentrated, with 16.0% of the fund in its ten largest positions against 41.8%.

Lower Fees: SCHDHigher Returns: splitLess Concentrated: MFUS

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

MetricMFUSSCHD
Expense Ratio0.29%0.06%Best
AUM$297M$112.1B
Dividend Yield1.37%3.00%
Holdings884103
YTD Return+14.82%+24.04%Best
1Y Return+18.41%+27.95%Best
3Y Return (annualized)+20.09%Best+15.51%
5Y Return (annualized)+12.60%Best+9.80%
Volatility (annualized)15.6%Best16.0%
Max Drawdown-35.2%-33.4%Best
$10,000 over 5 years$18,101Best$15,959
Top 10 Weight16.0%Best41.8%
Fund FamilyPIMCO (US)Charles Schwab Asset Management
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionAug 31, 2017Oct 20, 2011

Volatility and max drawdown are measured over the window both funds cover: Sep 6, 2017 to Sep 16, 2026 (9 years).

MFUS vs SCHD growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9 years both funds cover.

MFUS vs SCHD Performance

PIMCO RAFI Dynamic Multi-Factor US Equity ETF (MFUS) is an ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MFUS returned +18.41% while SCHD returned +27.95%. Year to date, MFUS is up 14.82% versus a gain of 24.04% for SCHD.

Over three years, MFUS compounded at +20.09% per year against +15.51% for SCHD; over five years the annualized figures are +12.60% and +9.80% respectively. Across the full 9-year window we track, MFUS has the edge at +12.31% annualized vs +11.54%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 15.6% for MFUS. 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 -35.2% for MFUS 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

MFUS charges 0.29% per year while SCHD charges 0.06%. On a $10,000 position that is $29 vs $6 annually, a gap of $23 per year that compounds over a long holding period. On income, MFUS currently yields 1.37% against 3.00% for SCHD.

Holdings Overlap

MFUS already in SCHD15.8%
SCHD already in MFUS87.9%

15.8% of MFUS's money is in holdings SCHD also owns. 87.9% of SCHD's money is in holdings MFUS also owns.

Most of SCHD is already inside MFUS. Owning both mostly buys the same companies twice.

60 positions in common, counted across the 874 positions we hold weights for in MFUS and 100 in SCHD, against full books of 884 and 103.

What only one of them owns

Our book lists 39 positions for SCHD that do not appear in our book for MFUS (12.1% of the fund), and 793 for MFUS that do not appear in SCHD (83.1%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in MFUSWeight in SCHDDifference
MRKMerck & Company Inc1.23%4.77%3.54%
CVXChevron Corp1.61%4.02%2.41%
AMGNAmgen Inc.0.93%4.70%3.77%
VZVerizon Communic0.96%3.97%3.01%
KOCoca Cola Co.0.69%4.17%3.48%
PGProcter & Gamble Company0.78%3.83%3.05%
HDHome Depot Inc/The0.46%3.88%3.42%
UNHUnitedhealth Group Incorporated0.49%3.82%3.33%
PEPPepsico Inc.0.65%3.64%2.99%
COPConocophillips Common Stock USD 0.010.30%3.94%3.64%

87.9% of SCHD is already inside MFUS.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

MFUSSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, MFUS or SCHD?

MFUS has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option, by $23 a year on a $10,000 investment.

Which performed better, MFUS or SCHD?

Over the past year MFUS returned +18.41% vs +27.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), MFUS annualized +12.31% vs +11.54% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MFUS or SCHD?

SCHD has been the more volatile fund at 16.0% annualized versus 15.6% for MFUS. Worst drawdown: MFUS -35.2% vs SCHD -33.4%.

Should I hold both MFUS and SCHD?

MFUS and SCHD have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between MFUS and SCHD?

87.9% of SCHD's money is in holdings MFUS also owns. 87.9% of SCHD's is in holdings MFUS also owns. They hold 60 positions in common, counted across the 874 positions we hold weights for in MFUS and 100 in SCHD.

Which pays a higher dividend, MFUS or SCHD?

MFUS yields 1.37% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than MFUS?

SCHD has a lower expense ratio. MFUS led over 3Y, 5Y and the full window, SCHD over 1Y. The two have moved almost in lockstep, correlation 0.90. MFUS is less concentrated, with 16.0% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.