MBND vs SCHD
State Street Nuveen Municipal Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | MBND | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.06% | |
| AUM | $27M | $103.7B | |
| Dividend Yield | 3.46% | 3.31% | |
| Holdings | 74 | 104 | |
| YTD Return | -1.55% | +24.26% | |
| 1Y Return | +1.81% | +31.38% | |
| 3Y Return (annualized) | +2.77% | +15.08% | |
| 5Y Return (annualized) | -0.05% | +9.72% | |
| Volatility (annualized) | 5.4% | 13.6% | |
| Max Drawdown | -13.2% | -33.4% | |
| Fund Family | State Street Investment Management | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 4, 2021 | Oct 20, 2011 |
MBND vs SCHD Performance
State Street Nuveen Municipal Bond ETF (MBND) is a ETF from State Street Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MBND returned +1.81% while SCHD returned +31.38%. Year to date, MBND is down 1.55% versus a gain of 24.26% for SCHD.
Over three years, MBND compounded at +2.77% per year against +15.08% for SCHD; over five years the annualized figures are -0.05% and +9.72% respectively. Across the full 6-year window we track, SCHD has the edge at +11.39% annualized vs +0.20%. 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 5.4% for MBND. 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 -13.2% for MBND 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBND charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, MBND currently yields 3.46% against 3.31% for SCHD.
Holdings Overlap
MBND and SCHD share 0 holdings out of 140 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, MBND or SCHD?
MBND has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, MBND or SCHD?
Over the past year MBND returned +1.81% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), MBND annualized +0.20% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MBND or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.4% for MBND. Worst drawdown: MBND -13.2% vs SCHD -33.4%.
Should I hold both MBND and SCHD?
MBND and SCHD have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBND and SCHD?
MBND and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, MBND or SCHD?
MBND yields 3.46% while SCHD yields 3.31%, so MBND currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.