BSMU vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. BSMU offers more diversification with 503 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: BSMU

Side-by-Side Comparison

MetricBSMUSCHDWinner
Expense Ratio0.18%0.06%
AUM$275M$103.7B
Dividend Yield2.79%3.31%
Holdings1,653104
YTD Return+0.35%+25.62%
1Y Return+3.04%+32.62%
3Y Return (annualized)+2.91%+15.58%
5Y Return (annualized)-0.87%+9.63%
Volatility (annualized)7.2%13.6%
Max Drawdown-19.5%-33.4%
Fund FamilyInvesco (US)Charles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionSep 16, 2020Oct 20, 2011

BSMU vs SCHD Performance

Invesco BulletShares 2030 Municipal Bond ETF (BSMU) 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 BSMU returned +3.04% while SCHD returned +32.62%. Year to date, BSMU is up 0.35% versus a gain of 25.62% for SCHD.

Over three years, BSMU compounded at +2.91% per year against +15.58% for SCHD; over five years the annualized figures are -0.87% and +9.63% respectively. Across the full 6-year window we track, SCHD has the edge at +11.47% annualized vs +0.20%. 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 7.2% for BSMU. 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 -19.5% for BSMU 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMU 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, BSMU currently yields 2.79% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BSMU and SCHD share 0 holdings out of 603 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, BSMU or SCHD?

BSMU 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, BSMU or SCHD?

Over the past year BSMU returned +3.04% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), BSMU annualized +0.20% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, BSMU or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 7.2% for BSMU. Worst drawdown: BSMU -19.5% vs SCHD -33.4%.

Should I hold both BSMU and SCHD?

BSMU and SCHD have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMU and SCHD?

BSMU and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 603 unique securities.

Which pays a higher dividend, BSMU or SCHD?

BSMU yields 2.79% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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