MSLC vs SCHD
Morgan Stanley Pathway Large Cap Equity ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MSLC offers more diversification with 789 holdings.
Side-by-Side Comparison
| Metric | MSLC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $3.9B | $108.7B | |
| Dividend Yield | 1.97% | 3.13% | |
| Holdings | 789 | 104 | |
| YTD Return | +11.28% | +28.70% | |
| 1Y Return | +17.23% | +31.07% | |
| 3Y Return (annualized) | - | +16.88% | |
| 5Y Return (annualized) | - | +10.20% | |
| Volatility (annualized) | 12.4% | 13.7% | |
| Max Drawdown | -17.9% | -33.4% | |
| Fund Family | Morgan Stanley | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2024 | Oct 20, 2011 |
MSLC vs SCHD Performance
Morgan Stanley Pathway Large Cap Equity ETF (MSLC) is a ETF from Morgan Stanley and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MSLC returned +17.23% while SCHD returned +31.07%. Year to date, MSLC is up 11.28% versus a gain of 28.70% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% 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 -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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.97% against 3.13% for SCHD.
Holdings Overlap
MSLC and SCHD share 53 holdings out of 780 unique holdings combined, representing a 7.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $33 per year of difference.
Which performed better, MSLC or SCHD?
Over the past year MSLC returned +17.23% vs +31.07% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), MSLC annualized +13.83% vs +11.62% for SCHD. Past performance does not guarantee future results.
Which is riskier, MSLC or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 12.4% for MSLC. Worst drawdown: MSLC -17.9% vs SCHD -33.4%.
Should I hold both MSLC and SCHD?
MSLC and SCHD have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSLC and SCHD?
MSLC and SCHD share 53 common holdings with a 7.6% weight overlap. Combined, they hold 780 unique securities.
Which pays a higher dividend, MSLC or SCHD?
MSLC yields 1.97% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.