BMN 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

MetricBMNSCHDWinner
Expense Ratio2.17%0.06%
AUM$156M$103.7B
Dividend Yield4.32%3.31%
Holdings170104
YTD Return+0.05%+24.26%
1Y Return+9.50%+31.38%
3Y Return (annualized)+5.58%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)9.5%13.6%
Max Drawdown-13.0%-33.4%
Fund FamilyBlackRock, Inc. (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionOct 26, 2022Oct 20, 2011

BMN vs SCHD Performance

BlackRock 2037 Municipal Target Term Trust (BMN) 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 BMN returned +9.50% while SCHD returned +31.38%. Year to date, BMN is up 0.05% versus a gain of 24.26% for SCHD.

Over three years, BMN compounded at +5.58% per year against +15.08% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +4.66%. 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 9.5% for BMN. 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 -13.0% for BMN 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BMN charges 2.17% per year while SCHD charges 0.06%. On a $10,000 position that is $217 vs $6 annually, a gap of $211 per year that compounds over a long holding period. On income, BMN currently yields 4.32% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BMN and SCHD share 0 holdings out of 163 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, BMN or SCHD?

BMN has an expense ratio of 2.17% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $211 per year of difference.

Which performed better, BMN or SCHD?

Over the past year BMN returned +9.50% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), BMN annualized +4.66% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, BMN or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 9.5% for BMN. Worst drawdown: BMN -13.0% vs SCHD -33.4%.

Should I hold both BMN and SCHD?

BMN and SCHD have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BMN and SCHD?

BMN and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 163 unique securities.

Which pays a higher dividend, BMN or SCHD?

BMN yields 4.32% while SCHD yields 3.31%, so BMN currently pays the higher dividend yield.

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