BSMT vs SCHD

BSMT vs SCHD

Which is better, BSMT or SCHD?

Municipal Bond against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricBSMTSCHD
Expense Ratio0.18%0.06%Best
AUM$289M$112.1B
Dividend Yield2.74%3.00%
Holdings1,834103
YTD Return-0.62%+23.46%Best
1Y Return+0.00%+27.20%Best
3Y Return (annualized)+2.83%+15.41%Best
5Y Return (annualized)-0.57%+10.16%Best
Volatility (annualized)6.3%Best16.5%
Max Drawdown-16.2%Best-33.4%
$10,000 over 5 years$9,718$16,223Best
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
StyleMunicipal BondLarge Cap Value
InceptionSep 25, 2019Oct 20, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 25, 2019 to Sep 18, 2026 (7 years).

BSMT vs SCHD growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

BSMT vs SCHD Performance

Invesco BulletShares 2029 Municipal Bond ETF (BSMT) is an ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year BSMT returned +0.00% while SCHD returned +27.20%. Year to date, BSMT is down 0.62% versus a gain of 23.46% for SCHD.

Over three years, BSMT compounded at +2.83% per year against +15.41% for SCHD; over five years the annualized figures are -0.57% and +10.16% respectively. Across the full 7-year window we track, SCHD has the edge at +12.33% annualized vs +0.34%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 6.3% for BSMT. 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 -16.2% for BSMT and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.

Fees and Cost Over Time

BSMT 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, BSMT currently yields 2.74% against 3.00% for SCHD.

Holdings Overlap

We hold position weights for 534 holdings in BSMT and 100 in SCHD, totalling 27.5% and 100.0% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 534 positions we hold weights for in BSMT and 100 in SCHD, against full books of 1,834 and 103.

You are not choosing between two funds in isolation.

Whichever of BSMT and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

BSMTSCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, BSMT or SCHD?

BSMT has an expense ratio of 0.18% while SCHD charges 0.06%. SCHD is the cheaper option, by $12 a year on a $10,000 investment.

Which performed better, BSMT or SCHD?

Over the past year BSMT returned +0.00% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), BSMT annualized +0.34% vs +12.33% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, BSMT or SCHD?

SCHD has been the more volatile fund at 16.5% annualized versus 6.3% for BSMT. Worst drawdown: BSMT -16.2% vs SCHD -33.4%.

Should I hold both BSMT and SCHD?

BSMT and SCHD have a monthly-return correlation of 0.46, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, BSMT or SCHD?

BSMT yields 2.74% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than BSMT?

SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.