ETF Comparison
PEP vs MCD: Which Is the Better Pick in 2026?
A head-to-head comparison of PepsiCo, Inc. and McDonald's Corporation covering yield, cost, risk, and income potential.
Data updated April 5, 2026
Side-by-side snapshot
| PEP | MCD | |
|---|---|---|
| Full name | PepsiCo, Inc. | McDonald's Corporation |
| Issuer | — | — |
| Price | $154.65 | $307.29 |
| Distribution yield | — | — |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | Manufactures, markets, distributes, and sells beverages and convenient foods worldwide under brands including Pepsi, Lay's, Gatorade, and Quaker. | Operates and franchises McDonald's restaurants serving a locally relevant menu of food and beverages in more than 100 countries worldwide. |
| Asset class | Equity | Equity |
| Inception date | — | — |
| Beta | — | — |
| Last dividend | $1.42 | $1.86 |
| Ex-dividend date | 03/06/2026 | 03/03/2026 |
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
PEP (PepsiCo, Inc.) and MCD (McDonald's Corporation) are both popular quarterly-pay manufactures, markets, distributes, and sells beverages and convenient foods worldwide under brands including pepsi, lay's, gatorade, and quaker. ETFs, but they take different approaches.
MCD is the larger fund by assets (—), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, PEP would generate roughly $0.00/month while MCD would produce $0.00/month at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, PEP would cost approximately $0 in fees vs $0 for MCD (simplified, not compounded). Both charge the same expense ratio.
Strategy & risk
PEP tracks — with a manufactures, markets, distributes, and sells beverages and convenient foods worldwide under brands including pepsi, lay's, gatorade, and quaker. approach, while MCD tracks — using a operates and franchises mcdonald's restaurants serving a locally relevant menu of food and beverages in more than 100 countries worldwide. strategy.
Fund details
PEP is managed by — (launched —) with — in assets. MCD is managed by — (launched —) with — in assets.
Income calculator
See how much monthly income a hypothetical investment would generate in each ETF at current yields.
Frequently asked questions
Is PEP or MCD better for dividend income?
It depends on your goals. PEP currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between PEP and MCD?
PEP (PepsiCo, Inc.) tracks — with a manufactures, markets, distributes, and sells beverages and convenient foods worldwide under brands including pepsi, lay's, gatorade, and quaker. strategy, while MCD (McDonald's Corporation) tracks — with a operates and franchises mcdonald's restaurants serving a locally relevant menu of food and beverages in more than 100 countries worldwide. approach. They are issued by — and — respectively.
Can I hold both PEP and MCD?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, PEP or MCD?
PEP has an expense ratio of — while MCD charges —. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in PEP vs MCD generate?
At current yields, $10,000 in PEP would generate roughly $0.00 per month ($0.00 annually). The same in MCD would produce about $0.00 per month ($0.00 annually).
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