MHD vs SCHD
BlackRock MuniHoldings Fund, Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MHD offers more diversification with 192 holdings.
Side-by-Side Comparison
| Metric | MHD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.06% | |
| AUM | $2.2B | $103.7B | |
| Dividend Yield | 5.52% | 3.31% | |
| Holdings | 422 | 104 | |
| YTD Return | +2.88% | +24.26% | |
| 1Y Return | +9.77% | +31.38% | |
| 3Y Return (annualized) | +6.36% | +15.08% | |
| 5Y Return (annualized) | -2.57% | +9.72% | |
| Volatility (annualized) | 13.4% | 13.6% | |
| Max Drawdown | -52.7% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 2, 1997 | Oct 20, 2011 |
MHD vs SCHD Performance
BlackRock MuniHoldings Fund, Inc (MHD) is a ETF from BlackRock, Inc. (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MHD returned +9.77% while SCHD returned +31.38%. Year to date, MHD is up 2.88% versus a gain of 24.26% for SCHD.
Over three years, MHD compounded at +6.36% per year against +15.08% for SCHD; over five years the annualized figures are -2.57% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% 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 13.4% for MHD. 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 -52.7% for MHD 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MHD charges 2.31% per year while SCHD charges 0.06%. On a $10,000 position that is $231 vs $6 annually, a gap of $225 per year that compounds over a long holding period. On income, MHD currently yields 5.52% against 3.31% for SCHD.
Holdings Overlap
MHD and SCHD share 0 holdings out of 292 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, MHD or SCHD?
MHD has an expense ratio of 2.31% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $225 per year of difference.
Which performed better, MHD or SCHD?
Over the past year MHD returned +9.77% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MHD annualized +0.01% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MHD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.4% for MHD. Worst drawdown: MHD -52.7% vs SCHD -33.4%.
Should I hold both MHD and SCHD?
MHD and SCHD have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MHD and SCHD?
MHD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 292 unique securities.
Which pays a higher dividend, MHD or SCHD?
MHD yields 5.52% while SCHD yields 3.31%, so MHD currently pays the higher dividend yield.
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