FLMI vs SCHD

FLMI vs SCHD

Which is better, FLMI 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

MetricFLMISCHD
Expense Ratio0.30%0.06%Best
AUM$2.4B$112.2B
Dividend Yield3.96%3.13%
Holdings1,342103
YTD Return-0.36%+27.56%Best
1Y Return+3.80%+30.29%Best
3Y Return (annualized)+5.15%+16.37%Best
5Y Return (annualized)+1.47%+10.23%Best
Volatility (annualized)5.5%Best16.0%
Max Drawdown-14.7%Best-33.4%
$10,000 over 5 years$10,757$16,274Best
Fund FamilyFranklin Templeton Investments (US)Charles Schwab Asset Management
CategoryTax PreferredEquity
StyleMunicipal BondLarge Cap Value
InceptionAug 31, 2017Oct 20, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 5, 2017 to Sep 4, 2026 (9 years).

FLMI 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 9 years both funds cover.

FLMI vs SCHD Performance

Franklin Dynamic Municipal Bond ETF (FLMI) is an ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FLMI returned +3.80% while SCHD returned +30.29%. Year to date, FLMI is down 0.36% versus a gain of 27.56% for SCHD.

Over three years, FLMI compounded at +5.15% per year against +16.37% for SCHD; over five years the annualized figures are +1.47% and +10.23% respectively. Across the full 9-year window we track, SCHD has the edge at +11.99% annualized vs +1.79%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 5.5% for FLMI. 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 -14.7% for FLMI 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 0.40. They move together some of the time, and apart the rest.

Fees and Cost Over Time

FLMI charges 0.30% per year while SCHD charges 0.06%. On a $10,000 position that is $30 vs $6 annually, a gap of $24 per year that compounds over a long holding period. On income, FLMI currently yields 3.96% against 3.13% for SCHD.

Holdings Overlap

We hold position weights for 202 holdings in FLMI and 100 in SCHD, totalling 30.2% 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 202 positions we hold weights for in FLMI and 100 in SCHD, against full books of 1,342 and 103.

You are not choosing between two funds in isolation.

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

FLMISCHD

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, FLMI or SCHD?

FLMI has an expense ratio of 0.30% while SCHD charges 0.06%. SCHD is the cheaper option, by $24 a year on a $10,000 investment.

Which performed better, FLMI or SCHD?

Over the past year FLMI returned +3.80% vs +30.29% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (9 years), FLMI annualized +1.79% vs +11.99% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, FLMI or SCHD?

SCHD has been the more volatile fund at 16.0% annualized versus 5.5% for FLMI. Worst drawdown: FLMI -14.7% vs SCHD -33.4%.

Should I hold both FLMI and SCHD?

FLMI and SCHD have a monthly-return correlation of 0.40, 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, FLMI or SCHD?

FLMI yields 3.96% while SCHD yields 3.13%, so FLMI currently pays the higher dividend yield.

Is SCHD better than FLMI?

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.