AFB 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

MetricAFBSCHDWinner
Expense Ratio1.56%0.06%
AUM$341M$103.7B
Dividend Yield4.67%3.31%
Holdings175104
YTD Return+4.75%+24.26%
1Y Return+12.23%+31.38%
3Y Return (annualized)+6.79%+15.08%
5Y Return (annualized)-1.81%+9.72%
Volatility (annualized)12.8%13.6%
Max Drawdown-56.2%-33.4%
Fund FamilyAllianceBernstein L.P.Charles Schwab Asset Management
CategoryTax PreferredEquity
InceptionJan 28, 2002Oct 20, 2011

AFB vs SCHD Performance

AllianceBernstein National Municipal Income Fund Inc (AFB) is a ETF from AllianceBernstein L.P. and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year AFB returned +12.23% while SCHD returned +31.38%. Year to date, AFB is up 4.75% versus a gain of 24.26% for SCHD.

Over three years, AFB compounded at +6.79% per year against +15.08% for SCHD; over five years the annualized figures are -1.81% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.30%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.8% for AFB. 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 -56.2% for AFB 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

AFB charges 1.56% per year while SCHD charges 0.06%. On a $10,000 position that is $156 vs $6 annually, a gap of $150 per year that compounds over a long holding period. On income, AFB currently yields 4.67% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

AFB and SCHD share 0 holdings out of 179 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, AFB or SCHD?

AFB has an expense ratio of 1.56% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $150 per year of difference.

Which performed better, AFB or SCHD?

Over the past year AFB returned +12.23% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), AFB annualized -0.30% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, AFB or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 12.8% for AFB. Worst drawdown: AFB -56.2% vs SCHD -33.4%.

Should I hold both AFB and SCHD?

AFB and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between AFB and SCHD?

AFB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 179 unique securities.

Which pays a higher dividend, AFB or SCHD?

AFB yields 4.67% while SCHD yields 3.31%, so AFB currently pays the higher dividend yield.

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