SCHD vs USMC
Schwab US Dividend Equity ETF vs Principal U.S. Mega-Cap ETF
Which is better, SCHD or USMC?
Large Cap Value against Large Cap Blend.
SCHD has a lower expense ratio. SCHD led over 1Y, USMC over 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 55.4%.
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 | SCHD | USMC |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.12% |
| AUM | $112.1B | $5.1B |
| Dividend Yield | 3.00% | 0.74% |
| Holdings | 103 | 29 |
| YTD Return | +24.23%Best | +12.29% |
| 1Y Return | +27.90%Best | +12.99% |
| 3Y Return (annualized) | +15.55% | +20.96%Best |
| 5Y Return (annualized) | +9.97% | +14.48%Best |
| Volatility (annualized) | 16.1% | 15.4%Best |
| Max Drawdown | -33.4% | -30.0%Best |
| $10,000 over 5 years | $16,083 | $19,663Best |
| Top 10 Weight | 41.8%Best | 55.4% |
| Fund Family | Charles Schwab Asset Management | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Oct 20, 2011 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Sep 17, 2026 (8.9 years).
SCHD vs USMC 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 8.9 years both funds cover.
SCHD vs USMC Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year SCHD returned +27.90% while USMC returned +12.99%. Year to date, SCHD is up 24.23% versus a gain of 12.29% for USMC.
Over three years, SCHD compounded at +15.55% per year against +20.96% for USMC; over five years the annualized figures are +9.97% and +14.48% respectively. Across the full 9-year window we track, USMC has the edge at +14.22% annualized vs +11.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 15.4% for USMC. 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 what each fund did in the worst stretch of the window measured above.
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 3.00% against 0.74% for USMC.
Holdings Overlap
11.8% of SCHD's money is in holdings USMC also owns. 7.0% of USMC's money is in holdings SCHD also owns.
SCHD and USMC share little of their money.
4 positions in common, counted across the 100 positions we hold weights for in SCHD and 27 in USMC, against full books of 103 and 29.
What only one of them owns
Measured across the 100 and 27 positions we hold weights for.
SCHD holds 95 positions USMC does not, 88.1% of the fund.
Largest: MRK 4.77%, AMGN 4.70%, ABT 4.69%, KO 4.17%, VZ 3.97%
You are not choosing between two funds in isolation.
Whichever of SCHD and USMC you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $6 a year on a $10,000 investment.
Which performed better, SCHD or USMC?
Over the past year SCHD returned +27.90% vs +12.99% for USMC, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), SCHD annualized +11.16% vs +14.22% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or USMC?
SCHD has been the more volatile fund at 16.1% annualized versus 15.4% for USMC. 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 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 SCHD and USMC?
11.8% of SCHD's money is in holdings USMC also owns. 7.0% of USMC's is in holdings SCHD also owns. They hold 4 positions in common, counted across the 100 positions we hold weights for in SCHD and 27 in USMC.
Which pays a higher dividend, SCHD or USMC?
SCHD yields 3.00% while USMC yields 0.74%, so SCHD currently pays the higher dividend yield.
Is USMC better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, USMC over 3Y, 5Y and the full window. SCHD is less concentrated, with 41.8% of the fund in its ten largest positions against 55.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.