SCHX vs. MGC

Last updated Jun 25, 2026

SCHX (Schwab U.S. Large-Cap ETF) and MGC (Vanguard Mega Cap ETF) are both Large Cap Blend Equities funds - SCHX tracks the Dow Jones U.S. Large-Cap Total Stock Market Index while MGC tracks the CRSP US Mega Cap Index. Both are passively managed. Over the past 10 years, SCHX returned 15.44%/yr vs 16.30%/yr for MGC. With a 0.99 correlation, they move nearly in lockstep. SCHX charges 0.03%/yr vs 0.05%/yr for MGC.

Performance

SCHX vs. MGC - Performance Comparison

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

Returns By Period

In the year-to-date period, SCHX achieves a 7.70% return, which is significantly higher than MGC's 7.15% return. Over the past 10 years, SCHX has underperformed MGC with an annualized return of 15.44%, while MGC has yielded a comparatively higher 16.30% annualized return.

SCHX

• 1D: -0.31%
• 1M: -1.47%
• YTD: 7.70%
• 6M: 6.36%
• 1Y: 21.22%
• 3Y*: 20.63%
• 5Y*: 12.29%
• 10Y*: 15.44%

MGC

• 1D: -0.26%
• 1M: -2.14%
• YTD: 7.15%
• 6M: 5.92%
• 1Y: 22.72%
• 3Y*: 21.82%
• 5Y*: 13.53%
• 10Y*: 16.30%

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

SCHX vs. MGC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHX Schwab U.S. Large-Cap ETF	7.70%	17.46%	24.88%	26.84%	-19.41%	26.81%	20.81%	31.22%	-4.66%	21.95%
MGC Vanguard Mega Cap ETF	7.15%	19.31%	27.16%	29.77%	-19.95%	27.58%	21.57%	31.14%	-3.45%	22.61%

Correlation

The correlation between SCHX and MGC is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Nov 3, 2009	0.99

The correlation between SCHX and MGC has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

SCHX vs. MGC - Sectors Allocation Comparison

Sectors	SCHX	MGC
Technology	37.8%	42.9%
Financial Services	10.4%	10.9%
Communication Services	9.8%	12.3%
Consumer Cyclical	9.4%	9.8%
Industrials	8.8%	6.0%
Healthcare	8.5%	8.6%
Consumer Defensive	4.5%	4.4%
Energy	3.1%	2.3%
Utilities	2.6%	0.9%
Real Estate	2.0%	0.9%
Basic Materials	1.8%	1.1%

Return for Risk

SCHX vs. MGC — Risk / Return Rank

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

SCHX

SCHX Risk / Return Rank: 56
SCHX Sharpe Ratio Rank: 55
SCHX Sortino Ratio Rank: 53
SCHX Omega Ratio Rank: 54
SCHX Calmar Ratio Rank: 53
SCHX Martin Ratio Rank: 63

MGC

MGC Risk / Return Rank: 57
MGC Sharpe Ratio Rank: 57
MGC Sortino Ratio Rank: 56
MGC Omega Ratio Rank: 56
MGC Calmar Ratio Rank: 52
MGC Martin Ratio Rank: 61

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.

SCHX vs. MGC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Large-Cap ETF (SCHX) and Vanguard Mega Cap ETF (MGC). 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.

	SCHX	MGC	Difference
Sharpe ratio: Return per unit of total volatility	1.69	1.75	-0.06
Sortino ratio: Return per unit of downside risk	2.33	2.40	-0.07
Omega ratio: Gain probability vs. loss probability	1.31	1.31	-0.01
Calmar ratio: Return relative to maximum drawdown	2.36	2.32	+0.04
Martin ratio: Return relative to average drawdown	10.29	9.94	+0.36

SCHX vs. MGC - Sharpe Ratio Comparison

The current SCHX Sharpe Ratio is 1.69, which is comparable to the MGC Sharpe Ratio of 1.75. The chart below compares the historical Sharpe Ratios of SCHX and MGC, 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

SCHX vs. MGC - Drawdown Comparison

The maximum SCHX drawdown since its inception was -34.33%, smaller than the maximum MGC drawdown of -52.26%. Use the drawdown chart below to compare losses from any high point for SCHX and MGC.

Drawdown Indicators

	SCHX	MGC	Difference
Max Drawdown Largest peak-to-trough decline	-34.33%	-52.26%	+17.93%
Max Drawdown (1Y) Largest decline over 1 year	-9.02%	-9.85%	+0.83%
Max Drawdown (3Y) Largest decline over 3 years	-19.04%	-19.28%	+0.24%
Max Drawdown (5Y) Largest decline over 5 years	-25.41%	-25.74%	+0.33%
Max Drawdown (10Y) Largest decline over 10 years	-34.33%	-33.07%	-1.26%
Current Drawdown Current decline from peak	-3.41%	-4.06%	+0.65%
Average Drawdown Average peak-to-trough decline	-3.96%	-7.17%	+3.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.07%	2.29%	-0.22%

Volatility

SCHX vs. MGC - Volatility Comparison

The current volatility for Schwab U.S. Large-Cap ETF (SCHX) is 4.87%, while Vanguard Mega Cap ETF (MGC) has a volatility of 5.20%. This indicates that SCHX experiences smaller price fluctuations and is considered to be less risky than MGC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHX	MGC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.87%	5.20%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	9.90%	10.28%	-0.38%
Volatility (1Y) Calculated over the trailing 1-year period	12.63%	13.06%	-0.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.22%	17.39%	-0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.16%	18.24%	-0.08%

SCHX vs. MGC - Expense Ratio Comparison

SCHX has a 0.03% expense ratio, which is lower than MGC'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

SCHX vs. MGC - Dividend Comparison

SCHX's dividend yield for the trailing twelve months is around 1.03%, more than MGC's 0.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGC Vanguard Mega Cap ETF	0.90%	0.93%	1.15%	1.35%	1.65%	1.17%	1.45%	1.81%	2.10%	1.83%	2.14%	2.11%
SCHX Schwab U.S. Large-Cap ETF	1.03%	1.09%	1.22%	1.39%	1.64%	1.22%	1.64%	1.82%	2.02%	1.70%	1.92%	2.04%

Frequently Asked Questions

Can I hold both SCHX and MGC in my portfolio?

With a correlation of 0.98, SCHX and MGC move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, SCHX or MGC?

MGC has higher volatility (5.20%) compared to SCHX (4.87%). In terms of maximum drawdown, SCHX dropped -34.33% vs MGC's -52.26%.

Which ETF is better, SCHX or MGC?

On 10-year performance, MGC leads with 16.30% vs 15.44% for SCHX. On fees, SCHX is cheaper at 0.03% per year. On volatility, SCHX has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHX or MGC?

Over the 10-year period, MGC has performed better with a 16.30% return vs 15.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHX or MGC?

SCHX is cheaper with a 0.03% expense ratio, compared with 0.05% for MGC.

Which ETF pays a higher dividend yield, SCHX or MGC?

SCHX has the higher dividend yield at 1.03%, compared with 0.90% for MGC.

What is the main difference between SCHX and MGC?

SCHX tracks Dow Jones U.S. Large-Cap Total Stock Market Index, while MGC tracks CRSP US Mega Cap Index. They also come from different issuers: Charles Schwab and Vanguard. Their fees differ too: 0.03% for SCHX and 0.05% for MGC.

Which has better risk-adjusted returns?

MGC currently has the higher Sharpe Ratio (1.75 vs 1.69), 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.