MGK vs SCHD
MGK vs SCHD
Vanguard Mega Cap Growth ETF vs Schwab US Dividend Equity ETF
Quick Verdict
MGK has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | MGK | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $33.1B | $103.7B | |
| Dividend Yield | 0.44% | 3.31% | |
| Holdings | 61 | 104 | |
| YTD Return | +10.24% | +24.08% | |
| 1Y Return | +19.65% | +31.88% | |
| 3Y Return (annualized) | +24.64% | +14.92% | |
| 5Y Return (annualized) | +14.01% | +9.85% | |
| Volatility (annualized) | 17.7% | 13.6% | |
| Max Drawdown | -48.9% | -33.4% | |
| Fund Family | Vanguard (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2007 | Oct 20, 2011 |
MGK vs SCHD Performance
Vanguard Mega Cap Growth ETF (MGK) is a ETF from Vanguard (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MGK returned +19.65% while SCHD returned +31.88%. Year to date, MGK is up 10.24% versus a gain of 24.08% for SCHD.
Over three years, MGK compounded at +24.64% per year against +14.92% for SCHD; over five years the annualized figures are +14.01% and +9.85% respectively. Across the full 15-year window we track, MGK has the edge at +12.66% annualized vs +11.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MGK has been the more volatile fund, with annualized monthly volatility of 17.7% 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 -48.9% for MGK 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MGK charges 0.05% per year while SCHD charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, MGK currently yields 0.44% against 3.31% for SCHD.
Holdings Overlap
MGK and SCHD share 0 holdings out of 155 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, MGK or SCHD?
MGK has an expense ratio of 0.05% while SCHD charges 0.06%. MGK is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MGK or SCHD?
Over the past year MGK returned +19.65% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MGK annualized +12.66% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MGK or SCHD?
MGK has been the more volatile fund at 17.7% annualized versus 13.6% for SCHD. Worst drawdown: MGK -48.9% vs SCHD -33.4%.
Should I hold both MGK and SCHD?
MGK and SCHD have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MGK and SCHD?
MGK and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 155 unique securities.
Which pays a higher dividend, MGK or SCHD?
MGK yields 0.44% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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