MBS vs SCHD
MBS vs SCHD
Angel Oak Mortgage-Backed Securities ETF vs Schwab US Dividend Equity 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 | MBS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.06% | |
| AUM | $148M | $103.7B | |
| Dividend Yield | 5.12% | 3.31% | |
| Holdings | 126 | 104 | |
| YTD Return | +0.32% | +23.53% | |
| 1Y Return | +3.89% | +30.95% | |
| 3Y Return (annualized) | - | +14.72% | |
| 5Y Return (annualized) | - | +9.56% | |
| Volatility (annualized) | 4.6% | 13.6% | |
| Max Drawdown | -4.1% | -33.4% | |
| Fund Family | Angel Oak Capital Advisors | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 20, 2024 | Oct 20, 2011 |
MBS vs SCHD Performance
Angel Oak Mortgage-Backed Securities ETF (MBS) is a ETF from Angel Oak Capital Advisors and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MBS returned +3.89% while SCHD returned +30.95%. Year to date, MBS is up 0.32% versus a gain of 23.53% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.6% for MBS. 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 -4.1% for MBS 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBS charges 0.49% per year while SCHD charges 0.06%. On a $10,000 position that is $49 vs $6 annually, a gap of $43 per year that compounds over a long holding period. On income, MBS currently yields 5.12% against 3.31% for SCHD.
Holdings Overlap
MBS and SCHD share 0 holdings out of 118 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, MBS or SCHD?
MBS has an expense ratio of 0.49% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, MBS or SCHD?
Over the past year MBS returned +3.89% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), MBS annualized +5.73% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, MBS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.6% for MBS. Worst drawdown: MBS -4.1% vs SCHD -33.4%.
Should I hold both MBS and SCHD?
MBS and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBS and SCHD?
MBS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 118 unique securities.
Which pays a higher dividend, MBS or SCHD?
MBS yields 5.12% while SCHD yields 3.31%, so MBS currently pays the higher dividend yield.
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