BSMQ vs SCHD
Invesco BulletShares 2026 Municipal Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BSMQ offers more diversification with 624 holdings.
Side-by-Side Comparison
| Metric | BSMQ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $271M | $103.7B | |
| Dividend Yield | 2.75% | 3.31% | |
| Holdings | 2,005 | 104 | |
| YTD Return | +1.31% | +25.58% | |
| 1Y Return | +2.82% | +31.06% | |
| 3Y Return (annualized) | +3.08% | +15.55% | |
| 5Y Return (annualized) | +0.25% | +9.61% | |
| Volatility (annualized) | 4.5% | 13.6% | |
| Max Drawdown | -13.6% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 25, 2019 | Oct 20, 2011 |
BSMQ vs SCHD Performance
Invesco BulletShares 2026 Municipal Bond ETF (BSMQ) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BSMQ returned +2.82% while SCHD returned +31.06%. Year to date, BSMQ is up 1.31% versus a gain of 25.58% for SCHD.
Over three years, BSMQ compounded at +3.08% per year against +15.55% for SCHD; over five years the annualized figures are +0.25% and +9.61% respectively. Across the full 7-year window we track, SCHD has the edge at +11.46% annualized vs +0.90%. 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 4.5% for BSMQ. 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 -13.6% for BSMQ 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BSMQ charges 0.18% per year while SCHD charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, BSMQ currently yields 2.75% against 3.31% for SCHD.
Holdings Overlap
BSMQ and SCHD share 0 holdings out of 724 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, BSMQ or SCHD?
BSMQ has an expense ratio of 0.18% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, BSMQ or SCHD?
Over the past year BSMQ returned +2.82% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), BSMQ annualized +0.90% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, BSMQ or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.5% for BSMQ. Worst drawdown: BSMQ -13.6% vs SCHD -33.4%.
Should I hold both BSMQ and SCHD?
BSMQ and SCHD have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BSMQ and SCHD?
BSMQ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 724 unique securities.
Which pays a higher dividend, BSMQ or SCHD?
BSMQ yields 2.75% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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