ITM vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. ITM offers more diversification with 390 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: ITM

Side-by-Side Comparison

MetricITMSCHDWinner
Expense Ratio0.18%0.06%
AUM$2.2B$103.7B
Dividend Yield2.92%3.31%
Holdings1,365104
YTD Return-2.14%+24.26%
1Y Return+2.33%+31.38%
3Y Return (annualized)+2.59%+15.08%
5Y Return (annualized)-0.26%+9.72%
Volatility (annualized)24.6%13.6%
Max Drawdown-46.2%-33.4%
Fund FamilyVanEckCharles Schwab Asset Management
CategoryTax PreferredEquity
InceptionDec 4, 2007Oct 20, 2011

ITM vs SCHD Performance

VanEck Intermediate Muni ETF (ITM) is a ETF from VanEck and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year ITM returned +2.33% while SCHD returned +31.38%. Year to date, ITM is down 2.14% versus a gain of 24.26% for SCHD.

Over three years, ITM compounded at +2.59% per year against +15.08% for SCHD; over five years the annualized figures are -0.26% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +3.22%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ITM has been the more volatile fund, with annualized monthly volatility of 24.6% compared with 13.6% for SCHD. 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 -46.2% for ITM 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ITM 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, ITM currently yields 2.92% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

ITM and SCHD share 0 holdings out of 490 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, ITM or SCHD?

ITM 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, ITM or SCHD?

Over the past year ITM returned +2.33% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), ITM annualized +3.22% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, ITM or SCHD?

ITM has been the more volatile fund at 24.6% annualized versus 13.6% for SCHD. Worst drawdown: ITM -46.2% vs SCHD -33.4%.

Should I hold both ITM and SCHD?

ITM and SCHD have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ITM and SCHD?

ITM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 490 unique securities.

Which pays a higher dividend, ITM or SCHD?

ITM yields 2.92% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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