MMSC vs SCHD
MMSC vs SCHD
First Trust Multi-Manager Small Cap Opportunities ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. MMSC delivered stronger 1-year returns. MMSC offers more diversification with 208 holdings.
Side-by-Side Comparison
| Metric | MMSC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.06% | |
| AUM | $51M | $103.7B | |
| Dividend Yield | 0.00% | 3.31% | |
| Holdings | 202 | 104 | |
| YTD Return | +17.19% | +23.31% | |
| 1Y Return | +35.89% | +30.42% | |
| 3Y Return (annualized) | +20.79% | +14.66% | |
| 5Y Return (annualized) | - | +9.59% | |
| Volatility (annualized) | 21.5% | 13.6% | |
| Max Drawdown | -40.8% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 13, 2021 | Oct 20, 2011 |
MMSC vs SCHD Performance
First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MMSC returned +35.89% while SCHD returned +30.42%. Year to date, MMSC is up 17.19% versus a gain of 23.31% for SCHD.
Over three years, MMSC compounded at +20.79% per year against +14.66% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.34% annualized vs +7.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MMSC has been the more volatile fund, with annualized monthly volatility of 21.5% 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 -40.8% for MMSC 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMSC charges 0.95% per year while SCHD charges 0.06%. On a $10,000 position that is $95 vs $6 annually, a gap of $89 per year that compounds over a long holding period. On income, MMSC currently yields 0.00% against 3.31% for SCHD.
Holdings Overlap
MMSC and SCHD share 0 holdings out of 308 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, MMSC or SCHD?
MMSC has an expense ratio of 0.95% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, MMSC or SCHD?
Over the past year MMSC returned +35.89% vs +30.42% for SCHD, so MMSC leads on 1-year performance. Over the longest common window we track (5 years), MMSC annualized +7.16% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, MMSC or SCHD?
MMSC has been the more volatile fund at 21.5% annualized versus 13.6% for SCHD. Worst drawdown: MMSC -40.8% vs SCHD -33.4%.
Should I hold both MMSC and SCHD?
MMSC and SCHD have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMSC and SCHD?
MMSC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 308 unique securities.
Which pays a higher dividend, MMSC or SCHD?
MMSC yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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