FMUN vs SCHD

Quick Verdict

FMUN has a lower expense ratio. SCHD delivered stronger 1-year returns. FMUN offers more diversification with 651 holdings.

Lower Fees: FMUNHigher Returns: SCHDMore Diversified: FMUN

Side-by-Side Comparison

MetricFMUNSCHDWinner
Expense Ratio0.05%0.06%
AUM$183M$103.7B
Dividend Yield3.58%3.31%
Holdings651104
YTD Return+0.64%+24.26%
1Y Return+5.19%+31.38%
3Y Return (annualized)-+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)4.3%13.6%
Max Drawdown-3.2%-33.4%
Fund FamilyFidelity Investments (US)Charles Schwab Asset Management
CategoryTax PreferredEquity
InceptionApr 7, 2025Oct 20, 2011

FMUN vs SCHD Performance

Fidelity Systematic Municipal Bond Index ETF (FMUN) is a ETF from Fidelity Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FMUN returned +5.19% while SCHD returned +31.38%. Year to date, FMUN is up 0.64% versus a gain of 24.26% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.3% for FMUN. 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 -3.2% for FMUN 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FMUN charges 0.05% per year while SCHD charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, FMUN currently yields 3.58% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, FMUN or SCHD?

FMUN has an expense ratio of 0.05% while SCHD charges 0.06%. FMUN is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, FMUN or SCHD?

Over the past year FMUN returned +5.19% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), FMUN annualized +4.11% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, FMUN or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 4.3% for FMUN. Worst drawdown: FMUN -3.2% vs SCHD -33.4%.

Should I hold both FMUN and SCHD?

FMUN and SCHD have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FMUN or SCHD?

FMUN yields 3.58% while SCHD yields 3.31%, so FMUN currently pays the higher dividend yield.

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