IIM vs SCHD
Invesco Value Municipal Income Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IIM offers more diversification with 245 holdings.
Side-by-Side Comparison
| Metric | IIM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.70% | 0.06% | |
| AUM | $3,691.17 | $103.7B | |
| Dividend Yield | 7.43% | 3.31% | |
| Holdings | 499 | 104 | |
| YTD Return | +6.83% | +25.62% | |
| 1Y Return | +17.96% | +32.62% | |
| 3Y Return (annualized) | +9.91% | +15.58% | |
| 5Y Return (annualized) | +0.18% | +9.63% | |
| Volatility (annualized) | 12.1% | 13.6% | |
| Max Drawdown | -46.5% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 26, 1993 | Oct 20, 2011 |
IIM vs SCHD Performance
Invesco Value Municipal Income Trust (IIM) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IIM returned +17.96% while SCHD returned +32.62%. Year to date, IIM is up 6.83% versus a gain of 25.62% for SCHD.
Over three years, IIM compounded at +9.91% per year against +15.58% for SCHD; over five years the annualized figures are +0.18% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% 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 12.1% for IIM. 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 -46.5% for IIM 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIM charges 1.70% per year while SCHD charges 0.06%. On a $10,000 position that is $170 vs $6 annually, a gap of $164 per year that compounds over a long holding period. On income, IIM currently yields 7.43% against 3.31% for SCHD.
Holdings Overlap
IIM and SCHD share 0 holdings out of 345 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, IIM or SCHD?
IIM has an expense ratio of 1.70% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $164 per year of difference.
Which performed better, IIM or SCHD?
Over the past year IIM returned +17.96% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IIM annualized +1.39% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, IIM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.1% for IIM. Worst drawdown: IIM -46.5% vs SCHD -33.4%.
Should I hold both IIM and SCHD?
IIM and SCHD have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIM and SCHD?
IIM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 345 unique securities.
Which pays a higher dividend, IIM or SCHD?
IIM yields 7.43% while SCHD yields 3.31%, so IIM currently pays the higher dividend yield.
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