MSLC vs SCHD
Morgan Stanley Pathway Large Cap Equity ETF vs Schwab US Dividend Equity ETF
Which is better, MSLC or SCHD?
Large Cap Blend against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y and the full window. MSLC is less concentrated, with 34.4% 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 | MSLC | SCHD |
|---|---|---|
| Expense Ratio | 0.39% | 0.06%Best |
| AUM | $4.1B | $112.1B |
| Dividend Yield | 1.92% | 3.00% |
| Holdings | 789 | 103 |
| YTD Return | +8.91% | +24.04%Best |
| 1Y Return | +12.19% | +27.95%Best |
| 3Y Return (annualized) | - | +15.51% |
| 5Y Return (annualized) | - | +9.80% |
| Volatility (annualized) | 12.4%Best | 13.2% |
| Max Drawdown | -17.9% | -14.0%Best |
| $10,000 over 1.8 years | $12,253 | $12,582Best |
| Top 10 Weight | 34.4%Best | 41.8% |
| Fund Family | Morgan Stanley | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Dec 9, 2024 | Oct 20, 2011 |
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Dec 9, 2024 to Sep 16, 2026 (1.8 years).
MSLC 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 1.8 years both funds cover.
MSLC vs SCHD Performance
Morgan Stanley Pathway Large Cap Equity ETF (MSLC) is an ETF from Morgan Stanley and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year MSLC returned +12.19% while SCHD returned +27.95%. Year to date, MSLC is up 8.91% versus a gain of 24.04% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.2% compared with 12.4% for MSLC. 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 -17.9% for MSLC and -14.0% 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 0.35. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MSLC charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, MSLC currently yields 1.92% against 3.00% for SCHD.
Holdings Overlap
7.7% of MSLC's money is in holdings SCHD also owns. 96.7% of SCHD's money is in holdings MSLC also owns.
Most of SCHD is already inside MSLC. Owning both mostly buys the same companies twice.
55 positions in common, counted across the 786 positions we hold weights for in MSLC and 100 in SCHD, against full books of 789 and 103.
What only one of them owns
Our book lists 44 positions for SCHD that do not appear in our book for MSLC (3.2% of the fund), and 636 for MSLC that do not appear in SCHD (89.2%).
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 MSLC | Weight in SCHD | Difference |
|---|---|---|---|
| MRKMerck & Company Inc | 0.71% | 4.77% | 4.06% |
| ABTAbbott Laboratories | 0.47% | 4.69% | 4.22% |
| AMGNAmgen Inc. | 0.39% | 4.70% | 4.31% |
| KOCoca Cola Co. | 0.65% | 4.17% | 3.52% |
| CVXChevron Corp | 0.37% | 4.02% | 3.65% |
| UNHUnitedhealth Group Incorporated | 0.56% | 3.82% | 3.26% |
| COPConocophillips Common Stock USD 0.01 | 0.39% | 3.94% | 3.55% |
| VZVerizon Communic | 0.34% | 3.97% | 3.63% |
| PGProcter & Gamble Company | 0.47% | 3.83% | 3.36% |
| HDHome Depot Inc/The | 0.32% | 3.88% | 3.56% |
96.7% of SCHD is already inside MSLC.
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, MSLC or SCHD?
MSLC has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, MSLC or SCHD?
Over the past year MSLC returned +12.19% vs +27.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), MSLC annualized +11.95% vs +13.61% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSLC or SCHD?
SCHD has been the more volatile fund at 13.2% annualized versus 12.4% for MSLC. Worst drawdown: MSLC -17.9% vs SCHD -14.0%.
Should I hold both MSLC and SCHD?
MSLC and SCHD have a monthly-return correlation of 0.35, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between MSLC and SCHD?
96.7% of SCHD's money is in holdings MSLC also owns. 96.7% of SCHD's is in holdings MSLC also owns. They hold 55 positions in common, counted across the 786 positions we hold weights for in MSLC and 100 in SCHD.
Which pays a higher dividend, MSLC or SCHD?
MSLC yields 1.92% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than MSLC?
SCHD has a lower expense ratio. SCHD led over 1Y and the full window. MSLC is less concentrated, with 34.4% 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.