FMB vs SCHD
First Trust Managed Municipal ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FMB offers more diversification with 1,279 holdings.
Side-by-Side Comparison
| Metric | FMB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $2.1B | $108.7B | |
| Dividend Yield | 3.62% | 3.13% | |
| Holdings | 1,279 | 104 | |
| YTD Return | +1.02% | +26.54% | |
| 1Y Return | +5.03% | +30.90% | |
| 3Y Return (annualized) | +3.44% | +16.29% | |
| 5Y Return (annualized) | +0.41% | +9.65% | |
| Volatility (annualized) | 4.9% | 13.6% | |
| Max Drawdown | -14.2% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 13, 2014 | Oct 20, 2011 |
FMB vs SCHD Performance
First Trust Managed Municipal ETF (FMB) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FMB returned +5.03% while SCHD returned +30.90%. Year to date, FMB is up 1.02% versus a gain of 26.54% for SCHD.
Over three years, FMB compounded at +3.44% per year against +16.29% for SCHD; over five years the annualized figures are +0.41% and +9.65% respectively. Across the full 12-year window we track, SCHD has the edge at +11.51% annualized vs +1.37%. 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 4.9% for FMB. 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 -14.2% for FMB 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMB charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, FMB currently yields 3.62% against 3.13% for SCHD.
Holdings Overlap
FMB and SCHD share 0 holdings out of 736 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, FMB or SCHD?
FMB has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, FMB or SCHD?
Over the past year FMB returned +5.03% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (12 years), FMB annualized +1.37% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FMB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.9% for FMB. Worst drawdown: FMB -14.2% vs SCHD -33.4%.
Should I hold both FMB and SCHD?
FMB and SCHD have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMB and SCHD?
FMB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 736 unique securities.
Which pays a higher dividend, FMB or SCHD?
FMB yields 3.62% while SCHD yields 3.13%, so FMB currently pays the higher dividend yield.
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