MMSC vs SCHD
First Trust Multi-Manager Small Cap Opportunities ETF vs Schwab US Dividend Equity ETF
Which is better, MMSC or SCHD?
Small Cap Growth against Large Cap Value.
SCHD has a lower expense ratio. MMSC led over 3Y, SCHD over 1Y, 5Y and the full window. MMSC is less concentrated, with 14.0% 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 | MMSC | SCHD |
|---|---|---|
| Expense Ratio | 0.95% | 0.06%Best |
| AUM | $52M | $112.1B |
| Dividend Yield | 0.00% | 3.00% |
| Holdings | 420 | 103 |
| YTD Return | +9.67% | +24.04%Best |
| 1Y Return | +17.56% | +27.95%Best |
| 3Y Return (annualized) | +19.32%Best | +15.51% |
| 5Y Return (annualized) | +5.55% | +9.80%Best |
| Volatility (annualized) | 21.4% | 14.9%Best |
| Max Drawdown | -40.8% | -16.9%Best |
| $10,000 over 5 years | $13,101 | $15,959Best |
| Top 10 Weight | 14.0%Best | 41.8% |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Value |
| Inception | Oct 13, 2021 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 14, 2021 to Sep 16, 2026 (4.9 years).
MMSC 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 4.9 years both funds cover.
MMSC vs SCHD Performance
First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) is an ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MMSC returned +17.56% while SCHD returned +27.95%. Year to date, MMSC is up 9.67% versus a gain of 24.04% for SCHD.
Over three years, MMSC compounded at +19.32% per year against +15.51% for SCHD; over five years the annualized figures are +5.55% and +9.80% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MMSC has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 14.9% 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 -40.8% for MMSC and -16.9% 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 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MMSC charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, MMSC currently yields 0.00% against 3.00% for SCHD.
Holdings Overlap
0.6% of MMSC's money is in holdings SCHD also owns. 0.1% of SCHD's money is in holdings MMSC also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 200 positions we hold weights for in MMSC and 100 in SCHD, against full books of 420 and 103.
What only one of them owns
Our book lists 98 positions for SCHD that do not appear in our book for MMSC (99.8% of the fund), and 186 for MMSC that do not appear in SCHD (92.8%).
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 MMSC | Weight in SCHD | Difference |
|---|---|---|---|
| RHIRobert Half International Inc. | 0.55% | 0.11% | 0.44% |
You are not choosing between two funds in isolation.
Whichever of MMSC and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MMSC or SCHD?
MMSC has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option, by $89 a year on a $10,000 investment.
Which performed better, MMSC or SCHD?
Over the past year MMSC returned +17.56% vs +27.95% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MMSC or SCHD?
MMSC has been the more volatile fund at 21.4% annualized versus 14.9% for SCHD. Worst drawdown: MMSC -40.8% vs SCHD -16.9%.
Should I hold both MMSC and SCHD?
MMSC and SCHD have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MMSC or SCHD?
MMSC yields 0.00% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than MMSC?
SCHD has a lower expense ratio. MMSC led over 3Y, SCHD over 1Y, 5Y and the full window. MMSC is less concentrated, with 14.0% 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.