What is the difference between MGV and SCHD?

MGV (Vanguard Mega Cap Value ETF) and SCHD (US Dividend Equity ETF Schwab) are both large value exchange-traded funds, but they serve slightly different investment strategies. MGV, managed by Vanguard, focuses on mega-cap value companies with an expense ratio of 0.05% and a dividend yield of 1.85%. In contrast, SCHD, offered by Schwab, has an expense ratio of 0.06% and a higher dividend yield of 3.11%. While both track similar categories, SCHD tends to emphasise higher yields, making it popular among income-focused investors.

What does expense ratio mean?

The expense ratio is the annual fee that a fund charges its shareholders, expressed as a percentage of assets under management. A lower expense ratio generally means more of your investment returns are kept in your pocket. MGV has an expense ratio of 0.05%, while SCHD has an expense ratio of 0.06%. Although the difference is small, understanding this fee can help investors compare the long-term cost of holding each fund.

Are MGV and SCHD top holdings similar?

No, the top ten holdings of MGV and SCHD are not the same. While both ETFs include major companies such as Johnson & Johnson (JNJ), their other top holdings differ. MGV's top positions include Micron Technology (MU) and JPMorgan Chase (JPM), whereas SCHD includes Merck (MRK) and AbbVie (ABT). This suggests MGV has a broader exposure to technology and financials, while SCHD leans more towards healthcare and consumer staples.

Which ETF has higher net assets, MGV or SCHD?

SCHD has significantly higher net assets than MGV. As of the latest data, SCHD's net assets total $112.8 billion, compared to MGV's $13.9 billion. This larger size for SCHD indicates greater liquidity and a more substantial institutional interest, making it easier to buy and sell shares. However, MGV's smaller asset base does not necessarily mean it's less stable; it simply has a different scale of investor participation.

Which ETF has a higher dividend yield?

SCHD offers a higher dividend yield of 3.11% compared to MGV's 1.85%. This difference makes SCHD more attractive for income-focused investors seeking regular payouts from their investments. Both ETFs are classified as large value funds, but SCHD specifically targets stocks with robust dividend-paying histories, enhancing its appeal for those prioritising income generation over capital appreciation.

What is the inception date of MGV?

MGV was launched on December 17, 2007, giving it nearly two decades of track record. This inception date means it has weathered several market cycles, including the financial crisis of 2008 and the volatility of recent years. Investors often consider an ETF's history as a reference for understanding its stability and performance over time.

Do I need to know the index tracked?

Knowing the index an ETF tracks can be useful, as it tells you how the fund's holdings are selected and rebalanced. However, for both MGV and SCHD, the specific indexes they track are not available publicly. This lack of transparency does not necessarily affect their performance but does mean investors must rely on their expense ratios and yields to understand their strategy.

What does it mean if sector weights are not available?

Sector weight data tells you how much of a fund is invested in specific industries such as healthcare, technology, or financials. When this data is 'not available' (as it is for MGV and SCHD here), it means the detailed breakdown of their current asset allocation is not shown on this page. You can still look at their top holdings to get a sense of their focus, but you won't see the exact percentage split across all sectors.

How does the expense ratio difference impact long-term returns?

MGV charges 0.05% annually, while SCHD charges 0.06%. This is a difference of 0.01 percentage points. Over long periods, even small fee differences can compound, meaning MGV might theoretically leave slightly more of the gross return with the investor, all else being equal. However, this calculation assumes identical market performance, which is rarely the case.

MGV vs SCHD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares Vanguard Mega Cap Value ETF (MGV) and US Dividend Equity ETF Schwab (SCHD). We examine their fees, holdings, dividends and how each fund tracks its market. MGV has a 0.05% expense ratio, while SCHD charges 0.06%. Index focus details are not available for these funds. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

MGV

Metric

SCHD

0.05%

Expense Ratio

0.06%

1.85%

Dividend Yield

3.11%

$13.87B

Net Assets

$112.77B

128

Holdings

102

Dec 17, 2007

Inception Date

Oct 20, 2011

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Index Tracked

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Large Value

Fund Category

Large Value

MGV costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

MGV

Pros

MGV offers a competitive fee of 0.05% for investors seeking broad mega-cap exposure.
MGV provides diversified holdings including major financials and industrials, reducing single-stock risk.
MGV maintains a stable yield of 1.85% through consistent dividends from established large-cap value firms.

Considerations

MGV's dividend yield of 1.85% lags behind income-focused options like SCHD's 3.11%.
MGV's index methodology is not publicly detailed, creating potential opacity in its tracking strategy.
MGV's sector weighting data is not available, limiting transparency on its actual industry exposure.

SCHD

Pros

SCHD offers an attractive dividend yield of 3.11% via its robust value-oriented stock selection.
SCHD's net assets exceed $112.8 billion, ensuring strong liquidity and institutional investor confidence.
SCHD holds established blue-chip names like Johnson & Johnson, enhancing portfolio stability and quality.

Considerations

SCHD's expense ratio of 0.06% is slightly higher than MGV's 0.05% fee.
SCHD's index methodology is not disclosed, which may raise concerns about its investment process.
SCHD's sector breakdown is unavailable, making it difficult to assess its specific industry concentration risks.

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About MGV and SCHD

MGV (MGV)

The Vanguard Mega Cap Value ETF is an exchange-traded fund designed to provide exposure to large-cap stocks that are considered undervalued relative to their peers. With a low expense ratio of 0.05%, this fund aims to offer cost-effective access to the value segment of the mega-cap market. It holds approximately 128 companies, focusing on firms with strong fundamentals that the market may have overlooked. Since its inception in December 2007, it has managed net assets of around USD 13.87 billion. The fund currently provides a dividend yield of 1.85%, making it a potential option for investors seeking value in large companies. However, like all investments, values can rise and fall, and returns are not guaranteed.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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MGV vs SCHD

Fund Snapshot