FUMB vs SCHD
First Trust Ultra Short Duration Municipal ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. FUMB offers more diversification with 252 holdings.
Side-by-Side Comparison
| Metric | FUMB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.06% | |
| AUM | $248M | $108.7B | |
| Dividend Yield | 2.75% | 3.13% | |
| Holdings | 252 | 104 | |
| YTD Return | +1.52% | +26.54% | |
| 1Y Return | +2.21% | +30.90% | |
| 3Y Return (annualized) | +2.93% | +16.29% | |
| 5Y Return (annualized) | +2.00% | +9.65% | |
| Volatility (annualized) | 0.8% | 13.6% | |
| Max Drawdown | -2.7% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 1, 2018 | Oct 20, 2011 |
FUMB vs SCHD Performance
First Trust Ultra Short Duration Municipal ETF (FUMB) 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 FUMB returned +2.21% while SCHD returned +30.90%. Year to date, FUMB is up 1.52% versus a gain of 26.54% for SCHD.
Over three years, FUMB compounded at +2.93% per year against +16.29% for SCHD; over five years the annualized figures are +2.00% and +9.65% respectively. Across the full 8-year window we track, SCHD has the edge at +11.51% annualized vs +1.39%. 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 0.8% for FUMB. 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 -2.7% for FUMB 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FUMB charges 0.29% per year while SCHD charges 0.06%. On a $10,000 position that is $29 vs $6 annually, a gap of $23 per year that compounds over a long holding period. On income, FUMB currently yields 2.75% against 3.13% for SCHD.
Holdings Overlap
FUMB and SCHD share 0 holdings out of 174 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, FUMB or SCHD?
FUMB has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, FUMB or SCHD?
Over the past year FUMB returned +2.21% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), FUMB annualized +1.39% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FUMB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 0.8% for FUMB. Worst drawdown: FUMB -2.7% vs SCHD -33.4%.
Should I hold both FUMB and SCHD?
FUMB and SCHD have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FUMB and SCHD?
FUMB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 174 unique securities.
Which pays a higher dividend, FUMB or SCHD?
FUMB yields 2.75% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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