SCHD vs USMC
SCHD vs USMC
Schwab US Dividend Equity ETF vs Principal U.S. Mega-Cap 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 | SCHD | USMC | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.12% | |
| AUM | $103.7B | $3.6B | |
| Dividend Yield | 3.31% | 0.75% | |
| Holdings | 104 | 28 | |
| YTD Return | +24.26% | +12.56% | |
| 1Y Return | +31.38% | +21.86% | |
| 3Y Return (annualized) | +15.08% | +21.07% | |
| 5Y Return (annualized) | +9.72% | +14.58% | |
| Volatility (annualized) | 13.6% | 15.4% | |
| Max Drawdown | -33.4% | -30.0% | |
| Fund Family | Charles Schwab Asset Management | Principal Funds | |
| Category | Equity | Equity | |
| Inception | Oct 20, 2011 | Oct 11, 2017 |
SCHD vs USMC Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Principal U.S. Mega-Cap ETF (USMC) is a ETF from Principal Funds. Over the past year SCHD returned +31.38% while USMC returned +21.86%. Year to date, SCHD is up 24.26% versus a gain of 12.56% for USMC.
Over three years, SCHD compounded at +15.08% per year against +21.07% for USMC; over five years the annualized figures are +9.72% and +14.58% respectively. Across the full 9-year window we track, USMC has the edge at +14.45% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USMC has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -33.4% for SCHD and -30.0% for USMC. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCHD charges 0.06% per year while USMC charges 0.12%. On a $10,000 position that is $6 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 0.75% for USMC.
Holdings Overlap
SCHD and USMC share 4 holdings out of 123 unique holdings combined, representing a 7.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCHD | Weight in USMC | Difference |
|---|---|---|---|
| PG | 4.15% | 2.80% | 1.35% |
| CVX | 3.95% | 2.24% | 1.71% |
| HD | 4.16% | 2.01% | 2.15% |
| GVMXX | Pro | Pro | Pro |
See all 4 holdings SCHD shares with USMC Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, SCHD or USMC?
SCHD has an expense ratio of 0.06% while USMC charges 0.12%. SCHD is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, SCHD or USMC?
Over the past year SCHD returned +31.38% vs +21.86% for USMC, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.39% vs +14.45% for USMC. Past performance does not guarantee future results.
Which is riskier, SCHD or USMC?
USMC has been the more volatile fund at 15.4% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs USMC -30.0%.
Should I hold both SCHD and USMC?
SCHD and USMC have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and USMC?
SCHD and USMC share 4 common holdings with a 7.1% weight overlap. Combined, they hold 123 unique securities.
Which pays a higher dividend, SCHD or USMC?
SCHD yields 3.31% while USMC yields 0.75%, so SCHD currently pays the higher dividend yield.
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