MSFO vs SCHD
YieldMax Microsoft Option Income Strategy 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 | MSFO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.06% | |
| AUM | $100M | $103.7B | |
| Dividend Yield | 42.88% | 3.31% | |
| Holdings | 15 | 104 | |
| YTD Return | +3.58% | +24.26% | |
| 1Y Return | -2.58% | +31.38% | |
| 3Y Return (annualized) | +15.57% | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 23.7% | 13.6% | |
| Max Drawdown | -29.7% | -33.4% | |
| Fund Family | YieldMax ETF | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Aug 24, 2023 | Oct 20, 2011 |
MSFO vs SCHD Performance
YieldMax Microsoft Option Income Strategy ETF (MSFO) is a ETF from YieldMax ETF and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MSFO returned -2.58% while SCHD returned +31.38%. Year to date, MSFO is up 3.58% versus a gain of 24.26% for SCHD.
Over three years, MSFO compounded at +15.57% per year against +15.08% for SCHD. Across the full 3-year window we track, MSFO has the edge at +15.57% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSFO has been the more volatile fund, with annualized monthly volatility of 23.7% 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 -29.7% for MSFO 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFO charges 1.07% per year while SCHD charges 0.06%. On a $10,000 position that is $107 vs $6 annually, a gap of $101 per year that compounds over a long holding period. On income, MSFO currently yields 42.88% against 3.31% for SCHD.
Holdings Overlap
MSFO and SCHD share 0 holdings out of 102 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, MSFO or SCHD?
MSFO has an expense ratio of 1.07% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $101 per year of difference.
Which performed better, MSFO or SCHD?
Over the past year MSFO returned -2.58% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), MSFO annualized +15.57% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MSFO or SCHD?
MSFO has been the more volatile fund at 23.7% annualized versus 13.6% for SCHD. Worst drawdown: MSFO -29.7% vs SCHD -33.4%.
Should I hold both MSFO and SCHD?
MSFO and SCHD have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFO and SCHD?
MSFO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 102 unique securities.
Which pays a higher dividend, MSFO or SCHD?
MSFO yields 42.88% while SCHD yields 3.31%, so MSFO currently pays the higher dividend yield.
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