DFNM vs SCHD
Dimensional National Municipal Bond ETF vs Schwab US Dividend Equity ETF
Which is better, DFNM or SCHD?
Municipal Bond against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window.
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
| Metric | DFNM | SCHD |
|---|---|---|
| Expense Ratio | 0.17% | 0.06%Best |
| AUM | $2.3B | $112.1B |
| Dividend Yield | 2.96% | 3.00% |
| Holdings | 1,189 | 103 |
| YTD Return | -1.29% | +23.46%Best |
| 1Y Return | -0.07% | +27.20%Best |
| 3Y Return (annualized) | +2.58% | +15.41%Best |
| 5Y Return (annualized) | - | +10.16% |
| Volatility (annualized) | 4.1%Best | 15.0% |
| Max Drawdown | -7.0%Best | -16.9% |
| $10,000 over 4.8 years | $10,400 | $15,063Best |
| Fund Family | Dimensional | Charles Schwab Asset Management |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Nov 15, 2021 | Oct 20, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4.8 years row, are measured over the window both funds cover: Nov 16, 2021 to Sep 18, 2026 (4.8 years).
DFNM 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 covers the 4.8 years both funds cover.
DFNM vs SCHD Performance
Dimensional National Municipal Bond ETF (DFNM) is an ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year DFNM returned -0.07% while SCHD returned +27.20%. Year to date, DFNM is down 1.29% versus a gain of 23.46% for SCHD.
Over three years, DFNM compounded at +2.58% per year against +15.41% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 4.1% for DFNM. 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 -7.0% for DFNM and -16.9% 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 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
DFNM charges 0.17% per year while SCHD charges 0.06%. On a $10,000 position that is $17 vs $6 annually, a gap of $11 per year that compounds over a long holding period. On income, DFNM currently yields 2.96% against 3.00% for SCHD.
Holdings Overlap
We hold position weights for 169 holdings in DFNM and 100 in SCHD, totalling 14.0% 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 169 positions we hold weights for in DFNM and 100 in SCHD, against full books of 1,189 and 103.
You are not choosing between two funds in isolation.
Whichever of DFNM and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DFNM or SCHD?
DFNM has an expense ratio of 0.17% while SCHD charges 0.06%. SCHD is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, DFNM or SCHD?
Over the past year DFNM returned -0.07% vs +27.20% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DFNM or SCHD?
SCHD has been the more volatile fund at 15.0% annualized versus 4.1% for DFNM. Worst drawdown: DFNM -7.0% vs SCHD -16.9%.
Should I hold both DFNM and SCHD?
DFNM and SCHD have a monthly-return correlation of 0.54, 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, DFNM or SCHD?
DFNM yields 2.96% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.
Is SCHD better than DFNM?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.