MAGG vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MAGG offers more diversification with 145 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: MAGG

Side-by-Side Comparison

MetricMAGGSCHDWinner
Expense Ratio0.36%0.06%
AUM$66M$103.7B
Dividend Yield4.75%3.31%
Holdings219104
YTD Return-0.57%+22.69%
1Y Return+2.99%+30.94%
3Y Return (annualized)+4.38%+14.20%
5Y Return (annualized)-+9.59%
Volatility (annualized)5.3%13.7%
Max Drawdown-4.6%-33.4%
Fund FamilyMadison FundsCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionAug 28, 2023Oct 20, 2011

MAGG vs SCHD Performance

Madison Aggregate Bond ETF (MAGG) is a ETF from Madison Funds and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MAGG returned +2.99% while SCHD returned +30.94%. Year to date, MAGG is down 0.57% versus a gain of 22.69% for SCHD.

Over three years, MAGG compounded at +4.38% per year against +14.20% for SCHD. Across the full 3-year window we track, SCHD has the edge at +11.31% annualized vs +4.38%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 5.3% for MAGG. 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 -4.6% for MAGG 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MAGG charges 0.36% per year while SCHD charges 0.06%. On a $10,000 position that is $36 vs $6 annually, a gap of $30 per year that compounds over a long holding period. On income, MAGG currently yields 4.75% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

MAGG and SCHD share 0 holdings out of 245 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, MAGG or SCHD?

MAGG has an expense ratio of 0.36% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $30 per year of difference.

Which performed better, MAGG or SCHD?

Over the past year MAGG returned +2.99% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), MAGG annualized +4.38% vs +11.31% for SCHD. Past performance does not guarantee future results.

Which is riskier, MAGG or SCHD?

SCHD has been the more volatile fund at 13.7% annualized versus 5.3% for MAGG. Worst drawdown: MAGG -4.6% vs SCHD -33.4%.

Should I hold both MAGG and SCHD?

MAGG and SCHD have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MAGG and SCHD?

MAGG and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 245 unique securities.

Which pays a higher dividend, MAGG or SCHD?

MAGG yields 4.75% while SCHD yields 3.31%, so MAGG currently pays the higher dividend yield.

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