MMT vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MMT offers more diversification with 547 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: MMT

Side-by-Side Comparison

MetricMMTSCHDWinner
Expense Ratio1.17%0.06%
AUM$266M$103.7B
Dividend Yield8.21%3.31%
Holdings920104
YTD Return-2.09%+22.69%
1Y Return+1.48%+30.94%
3Y Return (annualized)+7.20%+14.20%
5Y Return (annualized)+1.36%+9.59%
Volatility (annualized)10.8%13.7%
Max Drawdown-47.7%-33.4%
Fund FamilyMFS Investment ManagementCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionMar 12, 1987Oct 20, 2011

MMT vs SCHD Performance

MFS Multimarket Income Trust (MMT) 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 MMT returned +1.48% while SCHD returned +30.94%. Year to date, MMT is down 2.09% versus a gain of 22.69% for SCHD.

Over three years, MMT compounded at +7.20% per year against +14.20% for SCHD; over five years the annualized figures are +1.36% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.31% annualized vs +0.23%. 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 10.8% for MMT. 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 -47.7% for MMT 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MMT charges 1.17% per year while SCHD charges 0.06%. On a $10,000 position that is $117 vs $6 annually, a gap of $111 per year that compounds over a long holding period. On income, MMT currently yields 8.21% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

MMT and SCHD share 0 holdings out of 647 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, MMT or SCHD?

MMT has an expense ratio of 1.17% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $111 per year of difference.

Which performed better, MMT or SCHD?

Over the past year MMT returned +1.48% vs +30.94% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MMT annualized +0.23% vs +11.31% for SCHD. Past performance does not guarantee future results.

Which is riskier, MMT or SCHD?

SCHD has been the more volatile fund at 13.7% annualized versus 10.8% for MMT. Worst drawdown: MMT -47.7% vs SCHD -33.4%.

Should I hold both MMT and SCHD?

MMT and SCHD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MMT and SCHD?

MMT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 647 unique securities.

Which pays a higher dividend, MMT or SCHD?

MMT yields 8.21% while SCHD yields 3.31%, so MMT currently pays the higher dividend yield.

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