IQI vs SCHD
Invesco Quality Municipal Income Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IQI offers more diversification with 485 holdings.
Side-by-Side Comparison
| Metric | IQI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.71% | 0.06% | |
| AUM | $3,048.42 | $108.7B | |
| Dividend Yield | 7.66% | 3.13% | |
| Holdings | 485 | 104 | |
| YTD Return | +5.54% | +27.67% | |
| 1Y Return | +15.56% | +31.26% | |
| 3Y Return (annualized) | +10.54% | +16.66% | |
| 5Y Return (annualized) | -0.13% | +10.18% | |
| Volatility (annualized) | 11.6% | 13.6% | |
| Max Drawdown | -57.6% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 29, 1992 | Oct 20, 2011 |
IQI vs SCHD Performance
Invesco Quality Municipal Income Trust (IQI) 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 IQI returned +15.56% while SCHD returned +31.26%. Year to date, IQI is up 5.54% versus a gain of 27.67% for SCHD.
Over three years, IQI compounded at +10.54% per year against +16.66% for SCHD; over five years the annualized figures are -0.13% and +10.18% respectively. Across the full 15-year window we track, SCHD has the edge at +11.57% annualized vs -0.01%. 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 11.6% for IQI. 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 -57.6% for IQI 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IQI charges 1.71% per year while SCHD charges 0.06%. On a $10,000 position that is $171 vs $6 annually, a gap of $165 per year that compounds over a long holding period. On income, IQI currently yields 7.66% against 3.13% for SCHD.
Holdings Overlap
IQI 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, IQI or SCHD?
IQI has an expense ratio of 1.71% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $165 per year of difference.
Which performed better, IQI or SCHD?
Over the past year IQI returned +15.56% vs +31.26% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), IQI annualized -0.01% vs +11.57% for SCHD. Past performance does not guarantee future results.
Which is riskier, IQI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.6% for IQI. Worst drawdown: IQI -57.6% vs SCHD -33.4%.
Should I hold both IQI and SCHD?
IQI and SCHD have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQI and SCHD?
IQI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 345 unique securities.
Which pays a higher dividend, IQI or SCHD?
IQI yields 7.66% while SCHD yields 3.13%, so IQI currently pays the higher dividend yield.
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