MCR vs SCHD
MCR vs SCHD
MFS Charter Income Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MCR offers more diversification with 549 holdings.
Side-by-Side Comparison
| Metric | MCR | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.06% | |
| AUM | $270M | $103.7B | |
| Dividend Yield | 8.17% | 3.31% | |
| Holdings | 1,076 | 104 | |
| YTD Return | -0.55% | +22.69% | |
| 1Y Return | +3.59% | +30.94% | |
| 3Y Return (annualized) | +7.80% | +14.20% | |
| 5Y Return (annualized) | +0.97% | +9.59% | |
| Volatility (annualized) | 10.2% | 13.7% | |
| Max Drawdown | -45.2% | -33.4% | |
| Fund Family | MFS Investment Management | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jul 20, 1989 | Oct 20, 2011 |
MCR vs SCHD Performance
MFS Charter Income Trust (MCR) is a ETF from MFS Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MCR returned +3.59% while SCHD returned +30.94%. Year to date, MCR is down 0.55% versus a gain of 22.69% for SCHD.
Over three years, MCR compounded at +7.80% per year against +14.20% for SCHD; over five years the annualized figures are +0.97% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.31% annualized vs +0.16%. 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 10.2% for MCR. 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 -45.2% for MCR 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCR charges 1.02% per year while SCHD charges 0.06%. On a $10,000 position that is $102 vs $6 annually, a gap of $96 per year that compounds over a long holding period. On income, MCR currently yields 8.17% against 3.31% for SCHD.
Holdings Overlap
MCR and SCHD share 0 holdings out of 649 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, MCR or SCHD?
MCR has an expense ratio of 1.02% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, MCR or SCHD?
Over the past year MCR returned +3.59% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MCR annualized +0.16% vs +11.31% for SCHD. Past performance does not guarantee future results.
Which is riskier, MCR or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 10.2% for MCR. Worst drawdown: MCR -45.2% vs SCHD -33.4%.
Should I hold both MCR and SCHD?
MCR and SCHD have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCR and SCHD?
MCR and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 649 unique securities.
Which pays a higher dividend, MCR or SCHD?
MCR yields 8.17% while SCHD yields 3.31%, so MCR 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.