DSM vs SCHD
BNY Mellon Strategic Municipal Bond Fund Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. DSM offers more diversification with 131 holdings.
Side-by-Side Comparison
| Metric | DSM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.09% | 0.06% | |
| AUM | $365M | $103.7B | |
| Dividend Yield | 4.47% | 3.31% | |
| Holdings | 229 | 104 | |
| YTD Return | -1.40% | +24.26% | |
| 1Y Return | +10.34% | +31.38% | |
| 3Y Return (annualized) | +6.87% | +15.08% | |
| 5Y Return (annualized) | -2.50% | +9.72% | |
| Volatility (annualized) | 12.8% | 13.6% | |
| Max Drawdown | -59.3% | -33.4% | |
| Fund Family | BNY Mellon Investment Management | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 1989 | Oct 20, 2011 |
DSM vs SCHD Performance
BNY Mellon Strategic Municipal Bond Fund Inc (DSM) is a ETF from BNY Mellon Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DSM returned +10.34% while SCHD returned +31.38%. Year to date, DSM is down 1.40% versus a gain of 24.26% for SCHD.
Over three years, DSM compounded at +6.87% per year against +15.08% for SCHD; over five years the annualized figures are -2.50% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.65%. 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 12.8% for DSM. 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 -59.3% for DSM 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DSM charges 1.09% per year while SCHD charges 0.06%. On a $10,000 position that is $109 vs $6 annually, a gap of $103 per year that compounds over a long holding period. On income, DSM currently yields 4.47% against 3.31% for SCHD.
Holdings Overlap
DSM and SCHD share 0 holdings out of 231 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, DSM or SCHD?
DSM has an expense ratio of 1.09% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, DSM or SCHD?
Over the past year DSM returned +10.34% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), DSM annualized -0.65% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, DSM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.8% for DSM. Worst drawdown: DSM -59.3% vs SCHD -33.4%.
Should I hold both DSM and SCHD?
DSM and SCHD have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DSM and SCHD?
DSM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 231 unique securities.
Which pays a higher dividend, DSM or SCHD?
DSM yields 4.47% while SCHD yields 3.31%, so DSM currently pays the higher dividend yield.
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