LEO vs SCHD
BNY Mellon Strategic Municipals Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LEO offers more diversification with 154 holdings.
Side-by-Side Comparison
| Metric | LEO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.06% | |
| AUM | $500M | $103.7B | |
| Dividend Yield | 4.24% | 3.31% | |
| Holdings | 262 | 104 | |
| YTD Return | +0.37% | +25.33% | |
| 1Y Return | +10.39% | +32.31% | |
| 3Y Return (annualized) | +6.19% | +15.40% | |
| 5Y Return (annualized) | -3.68% | +9.70% | |
| Volatility (annualized) | 12.7% | 13.6% | |
| Max Drawdown | -58.0% | -33.4% | |
| Fund Family | BNY Mellon Investment Management | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 23, 1987 | Oct 20, 2011 |
LEO vs SCHD Performance
BNY Mellon Strategic Municipals Inc (LEO) is a ETF from BNY Mellon Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year LEO returned +10.39% while SCHD returned +32.31%. Year to date, LEO is up 0.37% versus a gain of 25.33% for SCHD.
Over three years, LEO compounded at +6.19% per year against +15.40% for SCHD; over five years the annualized figures are -3.68% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs -0.63%. 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 12.7% for LEO. 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 -58.0% for LEO 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LEO charges 0.98% per year while SCHD charges 0.06%. On a $10,000 position that is $98 vs $6 annually, a gap of $92 per year that compounds over a long holding period. On income, LEO currently yields 4.24% against 3.31% for SCHD.
Holdings Overlap
LEO and SCHD share 0 holdings out of 254 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, LEO or SCHD?
LEO has an expense ratio of 0.98% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, LEO or SCHD?
Over the past year LEO returned +10.39% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), LEO annualized -0.63% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, LEO or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.7% for LEO. Worst drawdown: LEO -58.0% vs SCHD -33.4%.
Should I hold both LEO and SCHD?
LEO and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LEO and SCHD?
LEO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 254 unique securities.
Which pays a higher dividend, LEO or SCHD?
LEO yields 4.24% while SCHD yields 3.31%, so LEO currently pays the higher dividend yield.
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