MOAT vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricMOATSCHDWinner
Expense Ratio0.46%0.06%
AUM$11.7B$103.7B
Dividend Yield1.35%3.31%
Holdings59104
YTD Return+7.42%+24.08%
1Y Return+14.66%+31.88%
3Y Return (annualized)+11.75%+14.92%
5Y Return (annualized)+9.11%+9.85%
Volatility (annualized)154573.1%13.6%
Max Drawdown-96.0%-33.4%
Fund FamilyVanEckCharles Schwab Asset Management
CategoryEquityEquity
InceptionApr 24, 2012Oct 20, 2011

MOAT vs SCHD Performance

VanEck Morningstar Wide Moat ETF (MOAT) is a ETF from VanEck and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MOAT returned +14.66% while SCHD returned +31.88%. Year to date, MOAT is up 7.42% versus a gain of 24.08% for SCHD.

Over three years, MOAT compounded at +11.75% per year against +14.92% for SCHD; over five years the annualized figures are +9.11% and +9.85% respectively. Across the full 15-year window we track, MOAT has the edge at +52.38% annualized vs +11.39%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MOAT has been the more volatile fund, with annualized monthly volatility of 154573.1% 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 -96.0% for MOAT 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MOAT charges 0.46% per year while SCHD charges 0.06%. On a $10,000 position that is $46 vs $6 annually, a gap of $40 per year that compounds over a long holding period. On income, MOAT currently yields 1.35% against 3.31% for SCHD.

Holdings Overlap

6.2%overlap

MOAT and SCHD share 5 holdings out of 150 unique holdings combined, representing a 6.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MOATWeight in SCHDDifference
BMY2.60%3.22%0.62%
PEP1.17%3.72%2.55%
BX1.35%2.38%1.03%
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Frequently Asked Questions

Which is cheaper, MOAT or SCHD?

MOAT has an expense ratio of 0.46% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, MOAT or SCHD?

Over the past year MOAT returned +14.66% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MOAT annualized +52.38% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, MOAT or SCHD?

MOAT has been the more volatile fund at 154573.1% annualized versus 13.6% for SCHD. Worst drawdown: MOAT -96.0% vs SCHD -33.4%.

Should I hold both MOAT and SCHD?

MOAT and SCHD have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MOAT and SCHD?

MOAT and SCHD share 5 common holdings with a 6.2% weight overlap. Combined, they hold 150 unique securities.

Which pays a higher dividend, MOAT or SCHD?

MOAT yields 1.35% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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