BBN vs SCHD
BlackRock Taxable Municipal Bond Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BBN offers more diversification with 202 holdings.
Side-by-Side Comparison
| Metric | BBN | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.06% | |
| AUM | $1.0B | $108.7B | |
| Dividend Yield | 7.16% | 3.13% | |
| Holdings | 202 | 104 | |
| YTD Return | +2.05% | +26.54% | |
| 1Y Return | +5.57% | +30.90% | |
| 3Y Return (annualized) | +7.44% | +16.29% | |
| 5Y Return (annualized) | -3.22% | +9.65% | |
| Volatility (annualized) | 12.8% | 13.6% | |
| Max Drawdown | -38.4% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 27, 2010 | Oct 20, 2011 |
BBN vs SCHD Performance
BlackRock Taxable Municipal Bond Trust (BBN) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BBN returned +5.57% while SCHD returned +30.90%. Year to date, BBN is up 2.05% versus a gain of 26.54% for SCHD.
Over three years, BBN compounded at +7.44% per year against +16.29% for SCHD; over five years the annualized figures are -3.22% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +0.94%. 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 BBN. 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 -38.4% for BBN 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BBN charges 1.07% per year while SCHD charges 0.06%. On a $10,000 position that is $107 vs $6 annually, a gap of $101 per year that compounds over a long holding period. On income, BBN currently yields 7.16% against 3.13% for SCHD.
Holdings Overlap
BBN and SCHD share 0 holdings out of 191 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, BBN or SCHD?
BBN has an expense ratio of 1.07% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $101 per year of difference.
Which performed better, BBN or SCHD?
Over the past year BBN returned +5.57% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), BBN annualized +0.94% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, BBN or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.8% for BBN. Worst drawdown: BBN -38.4% vs SCHD -33.4%.
Should I hold both BBN and SCHD?
BBN and SCHD have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BBN and SCHD?
BBN and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 191 unique securities.
Which pays a higher dividend, BBN or SCHD?
BBN yields 7.16% while SCHD yields 3.13%, so BBN currently pays the higher dividend yield.
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