IBMT vs SCHD
IBMT vs SCHD
iShares iBonds Dec 2031 Term Muni Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IBMT offers more diversification with 163 holdings.
Side-by-Side Comparison
| Metric | IBMT | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $128M | $103.7B | |
| Dividend Yield | 2.39% | 3.31% | |
| Holdings | 927 | 104 | |
| YTD Return | -1.43% | +24.26% | |
| 1Y Return | +0.97% | +31.38% | |
| 3Y Return (annualized) | - | +15.08% | |
| 5Y Return (annualized) | - | +9.72% | |
| Volatility (annualized) | 3.8% | 13.6% | |
| Max Drawdown | -3.7% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Oct 20, 2011 |
IBMT vs SCHD Performance
iShares iBonds Dec 2031 Term Muni Bond ETF (IBMT) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IBMT returned +0.97% while SCHD returned +31.38%. Year to date, IBMT is down 1.43% 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 3.8% for IBMT. 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 -3.7% for IBMT 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 0.23. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBMT charges 0.18% per year while SCHD charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, IBMT currently yields 2.39% against 3.31% for SCHD.
Holdings Overlap
IBMT and SCHD share 0 holdings out of 263 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, IBMT or SCHD?
IBMT has an expense ratio of 0.18% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, IBMT or SCHD?
Over the past year IBMT returned +0.97% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), IBMT annualized +4.06% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, IBMT or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.8% for IBMT. Worst drawdown: IBMT -3.7% vs SCHD -33.4%.
Should I hold both IBMT and SCHD?
IBMT and SCHD have a monthly-return correlation of 0.23, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBMT and SCHD?
IBMT and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 263 unique securities.
Which pays a higher dividend, IBMT or SCHD?
IBMT yields 2.39% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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