GBAB vs SCHD
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. GBAB offers more diversification with 636 holdings.
Side-by-Side Comparison
| Metric | GBAB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.93% | 0.06% | |
| AUM | $394M | $108.7B | |
| Dividend Yield | 10.66% | 3.13% | |
| Holdings | 636 | 104 | |
| YTD Return | +0.75% | +28.63% | |
| 1Y Return | +2.29% | +32.53% | |
| 3Y Return (annualized) | +7.86% | +16.97% | |
| 5Y Return (annualized) | -2.29% | +10.47% | |
| Volatility (annualized) | 11.7% | 13.7% | |
| Max Drawdown | -35.8% | -33.4% | |
| Fund Family | Guggenheim Investments | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 26, 2010 | Oct 20, 2011 |
GBAB vs SCHD Performance
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB) is a ETF from Guggenheim Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year GBAB returned +2.29% while SCHD returned +32.53%. Year to date, GBAB is up 0.75% versus a gain of 28.63% for SCHD.
Over three years, GBAB compounded at +7.86% per year against +16.97% for SCHD; over five years the annualized figures are -2.29% and +10.47% respectively. Across the full 15-year window we track, SCHD has the edge at +11.63% annualized vs +0.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 11.7% for GBAB. 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 -35.8% for GBAB 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBAB charges 2.93% per year while SCHD charges 0.06%. On a $10,000 position that is $293 vs $6 annually, a gap of $287 per year that compounds over a long holding period. On income, GBAB currently yields 10.66% against 3.13% for SCHD.
Holdings Overlap
GBAB and SCHD share 0 holdings out of 314 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, GBAB or SCHD?
GBAB has an expense ratio of 2.93% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $287 per year of difference.
Which performed better, GBAB or SCHD?
Over the past year GBAB returned +2.29% vs +32.53% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), GBAB annualized +0.81% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, GBAB or SCHD?
SCHD has been the more volatile fund at 13.7% annualized versus 11.7% for GBAB. Worst drawdown: GBAB -35.8% vs SCHD -33.4%.
Should I hold both GBAB and SCHD?
GBAB and SCHD have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GBAB and SCHD?
GBAB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 314 unique securities.
Which pays a higher dividend, GBAB or SCHD?
GBAB yields 10.66% while SCHD yields 3.13%, so GBAB currently pays the higher dividend yield.
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