MMKT vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricMMKTSCHDWinner
Expense Ratio0.20%0.06%
AUM$73M$103.7B
Dividend Yield3.69%3.31%
Holdings31104
YTD Return+1.97%+25.58%
1Y Return+3.59%+31.06%
3Y Return (annualized)-+15.55%
5Y Return (annualized)-+9.61%
Volatility (annualized)0.3%13.6%
Max Drawdown-0.0%-33.4%
Fund FamilyTexas CapitalCharles Schwab Asset Management
CategoryMoney MarketEquity
InceptionSep 13, 2024Oct 20, 2011

MMKT vs SCHD Performance

Texas Capital Government Money Market ETF (MMKT) is a ETF from Texas Capital and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MMKT returned +3.59% while SCHD returned +31.06%. Year to date, MMKT is up 1.97% versus a gain of 25.58% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 0.3% for MMKT. 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 -0.0% for MMKT 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 -0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MMKT charges 0.20% per year while SCHD charges 0.06%. On a $10,000 position that is $20 vs $6 annually, a gap of $14 per year that compounds over a long holding period. On income, MMKT currently yields 3.69% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

MMKT and SCHD share 0 holdings out of 104 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, MMKT or SCHD?

MMKT has an expense ratio of 0.20% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, MMKT or SCHD?

Over the past year MMKT returned +3.59% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), MMKT annualized +3.92% vs +11.46% for SCHD. Past performance does not guarantee future results.

Which is riskier, MMKT or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 0.3% for MMKT. Worst drawdown: MMKT -0.0% vs SCHD -33.4%.

Should I hold both MMKT and SCHD?

MMKT and SCHD have a monthly-return correlation of -0.24, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MMKT and SCHD?

MMKT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, MMKT or SCHD?

MMKT yields 3.69% while SCHD yields 3.31%, so MMKT currently pays the higher dividend yield.

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