MGC vs SCHD
Vanguard Mega Cap ETF vs Schwab US Dividend Equity ETF
Quick Verdict
MGC has a lower expense ratio. SCHD delivered stronger 1-year returns. MGC offers more diversification with 173 holdings.
Side-by-Side Comparison
| Metric | MGC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $10.0B | $103.7B | |
| Dividend Yield | 1.15% | 3.31% | |
| Holdings | 176 | 104 | |
| YTD Return | +13.59% | +24.26% | |
| 1Y Return | +24.26% | +31.38% | |
| 3Y Return (annualized) | +22.84% | +15.08% | |
| 5Y Return (annualized) | +13.98% | +9.72% | |
| Volatility (annualized) | 15.7% | 13.6% | |
| Max Drawdown | -53.0% | -33.4% | |
| Fund Family | Vanguard (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2007 | Oct 20, 2011 |
MGC vs SCHD Performance
Vanguard Mega Cap ETF (MGC) is a ETF from Vanguard (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MGC returned +24.26% while SCHD returned +31.38%. Year to date, MGC is up 13.59% versus a gain of 24.26% for SCHD.
Over three years, MGC compounded at +22.84% per year against +15.08% for SCHD; over five years the annualized figures are +13.98% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +10.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MGC has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -53.0% for MGC 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
MGC charges 0.05% per year while SCHD charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, MGC currently yields 1.15% against 3.31% for SCHD.
Holdings Overlap
MGC and SCHD share 22 holdings out of 251 unique holdings combined, representing a 7.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MGC or SCHD?
MGC has an expense ratio of 0.05% while SCHD charges 0.06%. MGC is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MGC or SCHD?
Over the past year MGC returned +24.26% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MGC annualized +10.11% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MGC or SCHD?
MGC has been the more volatile fund at 15.7% annualized versus 13.6% for SCHD. Worst drawdown: MGC -53.0% vs SCHD -33.4%.
Should I hold both MGC and SCHD?
MGC 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 MGC and SCHD?
MGC and SCHD share 22 common holdings with a 7.8% weight overlap. Combined, they hold 251 unique securities.
Which pays a higher dividend, MGC or SCHD?
MGC yields 1.15% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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