MRGR vs SCHD
ProShares Merger ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | MRGR | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.06% | |
| AUM | $16M | $103.7B | |
| Dividend Yield | 1.26% | 3.31% | |
| Holdings | 50 | 104 | |
| YTD Return | +1.88% | +25.62% | |
| 1Y Return | +7.42% | +32.62% | |
| 3Y Return (annualized) | +7.31% | +15.58% | |
| 5Y Return (annualized) | +3.65% | +9.63% | |
| Volatility (annualized) | 8.3% | 13.6% | |
| Max Drawdown | -22.5% | -33.4% | |
| Fund Family | ProShares | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Dec 11, 2012 | Oct 20, 2011 |
MRGR vs SCHD Performance
ProShares Merger ETF (MRGR) is a ETF from ProShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MRGR returned +7.42% while SCHD returned +32.62%. Year to date, MRGR is up 1.88% versus a gain of 25.62% for SCHD.
Over three years, MRGR compounded at +7.31% per year against +15.58% for SCHD; over five years the annualized figures are +3.65% and +9.63% respectively. Across the full 14-year window we track, SCHD has the edge at +11.47% annualized vs +1.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.3% for MRGR. 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 -22.5% for MRGR 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MRGR charges 0.75% per year while SCHD charges 0.06%. On a $10,000 position that is $75 vs $6 annually, a gap of $69 per year that compounds over a long holding period. On income, MRGR currently yields 1.26% against 3.31% for SCHD.
Holdings Overlap
MRGR and SCHD share 0 holdings out of 140 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, MRGR or SCHD?
MRGR has an expense ratio of 0.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, MRGR or SCHD?
Over the past year MRGR returned +7.42% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), MRGR annualized +1.98% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, MRGR or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 8.3% for MRGR. Worst drawdown: MRGR -22.5% vs SCHD -33.4%.
Should I hold both MRGR and SCHD?
MRGR and SCHD have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MRGR and SCHD?
MRGR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, MRGR or SCHD?
MRGR yields 1.26% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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