MGV vs SCHD
Vanguard Morningstar Mega Cap Value ETF vs Schwab US Dividend Equity ETF
Which is better, MGV or SCHD?
Each has led over a different period.
MGV has a lower expense ratio. MGV led over 3Y, 5Y and the full window, SCHD over 1Y. The two have moved almost in lockstep, correlation 0.94. MGV is less concentrated, with 28.5% of the fund in its ten largest positions against 41.8%.
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
| Metric | MGV | SCHD |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.06% |
| AUM | $13.4B | $112.1B |
| Dividend Yield | 1.82% | 3.00% |
| Holdings | 125 | 103 |
| YTD Return | +16.91% | +23.68%Best |
| 1Y Return | +22.35% | +28.36%Best |
| 3Y Return (annualized) | +19.47%Best | +16.20% |
| 5Y Return (annualized) | +13.42%Best | +10.07% |
| Volatility (annualized) | 13.1%Best | 13.7% |
| Max Drawdown | -35.4% | -33.4%Best |
| $10,000 over 5 years | $18,769Best | $16,156 |
| Top 10 Weight | 28.5%Best | 41.8% |
| Fund Family | Vanguard (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Dec 17, 2007 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 22, 2026 (14.9 years).
MGV 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 14.9 years both funds cover.
MGV vs SCHD Performance
Vanguard Morningstar Mega Cap Value ETF (MGV) is an ETF from Vanguard (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MGV returned +22.35% while SCHD returned +28.36%. Year to date, MGV is up 16.91% versus a gain of 23.68% for SCHD.
Over three years, MGV compounded at +19.47% per year against +16.20% for SCHD; over five years the annualized figures are +13.42% and +10.07% respectively. Across the full 15-year window we track, MGV has the edge at +11.54% annualized vs +11.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 13.1% for MGV. 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 -35.4% for MGV 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MGV 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, MGV currently yields 1.82% against 3.00% for SCHD.
Holdings Overlap
20.3% of MGV's money is in holdings SCHD also owns. 74.3% of SCHD's money is in holdings MGV also owns.
Most of SCHD is already inside MGV. Owning both mostly buys the same companies twice.
22 positions in common, counted across the 122 positions we hold weights for in MGV and 100 in SCHD, against full books of 125 and 103.
What only one of them owns
Our book lists 77 positions for SCHD that do not appear in our book for MGV (25.6% of the fund), and 99 for MGV that do not appear in SCHD (79.5%).
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
| Stock | Weight in MGV | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 1.52% | 4.77% | 3.25% |
| CVXChevron Corp | 1.76% | 4.02% | 2.26% |
| AMGNAmgen Inc. | 0.98% | 4.70% | 3.72% |
| UNHUnitedhealth Group Incorporated | 1.78% | 3.82% | 2.04% |
| KOCoca Cola Co. | 1.43% | 4.17% | 2.74% |
| ABTAbbott Laboratories | 0.87% | 4.69% | 3.82% |
| HDHome Depot Inc/The | 1.57% | 3.88% | 2.31% |
| PGProcter & Gamble Company | 1.59% | 3.83% | 2.24% |
| VZVerizon Communic | 0.83% | 3.97% | 3.14% |
| COPConocophillips Common Stock USD 0.01 | 0.70% | 3.94% | 3.24% |
74.3% of SCHD is already inside MGV.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MGV or SCHD?
MGV has an expense ratio of 0.05% while SCHD charges 0.06%. MGV is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, MGV or SCHD?
Over the past year MGV returned +22.35% vs +28.36% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MGV annualized +11.54% vs +11.26% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MGV or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 13.1% for MGV. Worst drawdown: MGV -35.4% vs SCHD -33.4%.
Should I hold both MGV and SCHD?
MGV and SCHD have a monthly-return correlation of 0.94, 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 MGV and SCHD?
74.3% of SCHD's money is in holdings MGV also owns. 74.3% of SCHD's is in holdings MGV also owns. They hold 22 positions in common, counted across the 122 positions we hold weights for in MGV and 100 in SCHD.
Which pays a higher dividend, MGV or SCHD?
MGV yields 1.82% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than MGV?
MGV has a lower expense ratio. MGV led over 3Y, 5Y and the full window, SCHD over 1Y. The two have moved almost in lockstep, correlation 0.94. MGV is less concentrated, with 28.5% 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.