DFNM vs SCHD
Dimensional National Municipal Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DFNM offers more diversification with 190 holdings.
Side-by-Side Comparison
| Metric | DFNM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.17% | 0.06% | |
| AUM | $2.2B | $103.7B | |
| Dividend Yield | 2.93% | 3.31% | |
| Holdings | 1,129 | 104 | |
| YTD Return | +1.00% | +26.21% | |
| 1Y Return | +3.92% | +29.99% | |
| 3Y Return (annualized) | +3.19% | +15.73% | |
| 5Y Return (annualized) | - | +9.67% | |
| Volatility (annualized) | 4.1% | 13.6% | |
| Max Drawdown | -7.0% | -33.4% | |
| Fund Family | Dimensional | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 15, 2021 | Oct 20, 2011 |
DFNM vs SCHD Performance
Dimensional National Municipal Bond ETF (DFNM) is a ETF from Dimensional and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DFNM returned +3.92% while SCHD returned +29.99%. Year to date, DFNM is up 1.00% versus a gain of 26.21% for SCHD.
Over three years, DFNM compounded at +3.19% per year against +15.73% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.50% annualized vs +1.32%. 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 4.1% 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 -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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.93% against 3.31% for SCHD.
Holdings Overlap
DFNM and SCHD share 0 holdings out of 290 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, DFNM or SCHD?
DFNM has an expense ratio of 0.17% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, DFNM or SCHD?
Over the past year DFNM returned +3.92% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), DFNM annualized +1.32% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, DFNM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.1% for DFNM. Worst drawdown: DFNM -7.0% vs SCHD -33.4%.
Should I hold both DFNM and SCHD?
DFNM and SCHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DFNM and SCHD?
DFNM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 290 unique securities.
Which pays a higher dividend, DFNM or SCHD?
DFNM yields 2.93% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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