SCHB vs. MGK

Last updated Jun 14, 2026

SCHB (Schwab U.S. Broad Market ETF) and MGK (Vanguard Mega Cap Growth ETF) are both exchange-traded funds - SCHB is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Broad Stock Market Index, while MGK is a Large Cap Growth Equities fund tracking the CRSP US Mega Cap Growth Index. Both are passively managed. Over the past 10 years, SCHB returned 15.01%/yr vs 18.85%/yr for MGK. Their correlation of 0.93 suggests significant overlap in exposure. SCHB charges 0.03%/yr vs 0.05%/yr for MGK.

Performance

SCHB vs. MGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Broad Market ETF (SCHB) and Vanguard Mega Cap Growth ETF (MGK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHB achieves a 9.68% return, which is significantly higher than MGK's 5.33% return. Over the past 10 years, SCHB has underperformed MGK with an annualized return of 15.01%, while MGK has yielded a comparatively higher 18.85% annualized return.

SCHB

• 1D: 0.49%
• 1M: -0.35%
• YTD: 9.68%
• 6M: 9.76%
• 1Y: 26.16%
• 3Y*: 20.63%
• 5Y*: 12.26%
• 10Y*: 15.01%

MGK

• 1D: 0.22%
• 1M: -3.17%
• YTD: 5.33%
• 6M: 6.21%
• 1Y: 24.77%
• 3Y*: 24.17%
• 5Y*: 14.87%
• 10Y*: 18.85%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SCHB vs. MGK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHB Schwab U.S. Broad Market ETF	9.68%	16.94%	23.93%	26.16%	-19.46%	25.84%	20.76%	30.79%	-5.43%	21.20%
MGK Vanguard Mega Cap Growth ETF	5.33%	20.67%	32.94%	51.67%	-33.59%	28.58%	41.01%	37.38%	-2.91%	29.49%

Correlation

The correlation between SCHB and MGK is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009	0.93

The correlation between SCHB and MGK has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

SCHB vs. MGK - Sectors Allocation Comparison

Sectors	SCHB	MGK
Technology	37.3%	56.1%
Financial Services	11.4%	4.5%
Communication Services	9.8%	17.3%
Consumer Cyclical	9.8%	12.8%
Industrials	9.1%	1.1%
Healthcare	8.8%	4.5%
Consumer Defensive	4.3%	0.4%
Energy	3.3%	-
Real Estate	2.3%	1.3%
Utilities	2.1%	1.2%
Basic Materials	1.9%	0.7%

Return for Risk

SCHB vs. MGK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCHB

SCHB Risk / Return Rank: 69
SCHB Sharpe Ratio Rank: 70
SCHB Sortino Ratio Rank: 68
SCHB Omega Ratio Rank: 69
SCHB Calmar Ratio Rank: 64
SCHB Martin Ratio Rank: 76

MGK

MGK Risk / Return Rank: 39
MGK Sharpe Ratio Rank: 44
MGK Sortino Ratio Rank: 42
MGK Omega Ratio Rank: 42
MGK Calmar Ratio Rank: 31
MGK Martin Ratio Rank: 35

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCHB vs. MGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Broad Market ETF (SCHB) and Vanguard Mega Cap Growth ETF (MGK). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SCHB	MGK	Difference
Sharpe ratio: Return per unit of total volatility	1.96	1.37	+0.59
Sortino ratio: Return per unit of downside risk	2.66	1.89	+0.77
Omega ratio: Gain probability vs. loss probability	1.35	1.24	+0.11
Calmar ratio: Return relative to maximum drawdown	2.78	1.37	+1.41
Martin ratio: Return relative to average drawdown	12.44	4.65	+7.79

SCHB vs. MGK - Sharpe Ratio Comparison

The current SCHB Sharpe Ratio is 1.96, which is higher than the MGK Sharpe Ratio of 1.37. The chart below compares the historical Sharpe Ratios of SCHB and MGK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SCHB vs. MGK - Drawdown Comparison

The maximum SCHB drawdown since its inception was -35.27%, smaller than the maximum MGK drawdown of -48.43%. Use the drawdown chart below to compare losses from any high point for SCHB and MGK.

Drawdown Indicators

	SCHB	MGK	Difference
Max Drawdown Largest peak-to-trough decline	-35.27%	-48.43%	+13.16%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-16.85%	+7.94%
Max Drawdown (3Y) Largest decline over 3 years	-19.34%	-23.36%	+4.02%
Max Drawdown (5Y) Largest decline over 5 years	-25.41%	-36.01%	+10.60%
Max Drawdown (10Y) Largest decline over 10 years	-35.27%	-36.01%	+0.74%
Current Drawdown Current decline from peak	-2.15%	-5.63%	+3.48%
Average Drawdown Average peak-to-trough decline	-4.11%	-7.58%	+3.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	4.97%	-2.98%

Volatility

SCHB vs. MGK - Volatility Comparison

The current volatility for Schwab U.S. Broad Market ETF (SCHB) is 4.60%, while Vanguard Mega Cap Growth ETF (MGK) has a volatility of 5.96%. This indicates that SCHB experiences smaller price fluctuations and is considered to be less risky than MGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHB	MGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.60%	5.96%	-1.36%
Volatility (6M) Calculated over the trailing 6-month period	9.86%	13.29%	-3.43%
Volatility (1Y) Calculated over the trailing 1-year period	12.63%	16.87%	-4.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.31%	22.72%	-5.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.35%	21.93%	-3.58%

SCHB vs. MGK - Expense Ratio Comparison

SCHB has a 0.03% expense ratio, which is lower than MGK's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHB vs. MGK - Dividend Comparison

SCHB's dividend yield for the trailing twelve months is around 1.03%, more than MGK's 0.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGK Vanguard Mega Cap Growth ETF	0.33%	0.35%	0.43%	0.50%	0.70%	0.41%	0.65%	0.85%	1.12%	1.23%	1.53%	1.43%
SCHB Schwab U.S. Broad Market ETF	1.03%	1.11%	1.24%	1.40%	1.61%	1.21%	1.63%	1.80%	2.00%	1.65%	1.86%	2.00%

Frequently Asked Questions

Can I hold both SCHB and MGK in my portfolio?

SCHB and MGK have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHB or MGK?

MGK has higher volatility (5.96%) compared to SCHB (4.60%). In terms of maximum drawdown, SCHB dropped -35.27% vs MGK's -48.43%.

Which ETF is better, SCHB or MGK?

On 10-year performance, MGK leads with 18.85% vs 15.01% for SCHB. On fees, SCHB is cheaper at 0.03% per year. On volatility, SCHB has been the lower-risk option at 4.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHB or MGK?

Over the 10-year period, MGK has performed better with a 18.85% return vs 15.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHB or MGK?

SCHB is cheaper with a 0.03% expense ratio, compared with 0.05% for MGK.

Which ETF pays a higher dividend yield, SCHB or MGK?

SCHB has the higher dividend yield at 1.03%, compared with 0.33% for MGK.

What is the main difference between SCHB and MGK?

SCHB is categorized as Large Cap Blend Equities, while MGK is Large Cap Growth Equities. SCHB tracks Dow Jones U.S. Broad Stock Market Index, while MGK tracks CRSP US Mega Cap Growth Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.03% for SCHB and 0.05% for MGK.

Which has better risk-adjusted returns?

SCHB currently has the higher Sharpe Ratio (1.96 vs 1.37), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.