LEO vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. LEO offers more diversification with 154 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: LEO

Side-by-Side Comparison

MetricLEOSCHDWinner
Expense Ratio0.98%0.06%
AUM$500M$103.7B
Dividend Yield4.24%3.31%
Holdings262104
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 FamilyBNY Mellon Investment ManagementCharles Schwab Asset Management
CategoryTax PreferredEquity
InceptionSep 23, 1987Oct 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

0.0%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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