MMD vs SCHD
NYLI MacKay DefinedTerm Muni Opportunities Fund 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 | MMD | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.33% | 0.06% | |
| AUM | $478M | $103.7B | |
| Dividend Yield | 4.59% | 3.31% | |
| Holdings | 90 | 104 | |
| YTD Return | +3.22% | +25.33% | |
| 1Y Return | +6.87% | +32.31% | |
| 3Y Return (annualized) | +1.20% | +15.40% | |
| 5Y Return (annualized) | -3.55% | +9.70% | |
| Volatility (annualized) | 11.2% | 13.6% | |
| Max Drawdown | -30.1% | -33.4% | |
| Fund Family | New York Life Investments | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 27, 2012 | Oct 20, 2011 |
MMD vs SCHD Performance
NYLI MacKay DefinedTerm Muni Opportunities Fund (MMD) is a ETF from New York Life Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MMD returned +6.87% while SCHD returned +32.31%. Year to date, MMD is up 3.22% versus a gain of 25.33% for SCHD.
Over three years, MMD compounded at +1.20% per year against +15.40% for SCHD; over five years the annualized figures are -3.55% and +9.70% respectively. Across the full 14-year window we track, SCHD has the edge at +11.45% annualized vs -0.12%. 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 11.2% for MMD. 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 -30.1% for MMD 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
MMD charges 2.33% per year while SCHD charges 0.06%. On a $10,000 position that is $233 vs $6 annually, a gap of $227 per year that compounds over a long holding period. On income, MMD currently yields 4.59% against 3.31% for SCHD.
Holdings Overlap
MMD and SCHD share 0 holdings out of 149 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, MMD or SCHD?
MMD has an expense ratio of 2.33% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $227 per year of difference.
Which performed better, MMD or SCHD?
Over the past year MMD returned +6.87% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (14 years), MMD annualized -0.12% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, MMD or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.2% for MMD. Worst drawdown: MMD -30.1% vs SCHD -33.4%.
Should I hold both MMD and SCHD?
MMD 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 MMD and SCHD?
MMD and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 149 unique securities.
Which pays a higher dividend, MMD or SCHD?
MMD yields 4.59% while SCHD yields 3.31%, so MMD currently pays the higher dividend yield.
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