MQY vs SCHD
BlackRock MuniYield Quality Fund, Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MQY offers more diversification with 201 holdings.
Side-by-Side Comparison
| Metric | MQY | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.90% | 0.06% | |
| AUM | $1.8B | $103.7B | |
| Dividend Yield | 5.56% | 3.31% | |
| Holdings | 456 | 104 | |
| YTD Return | +3.68% | +26.21% | |
| 1Y Return | +8.25% | +29.99% | |
| 3Y Return (annualized) | +5.70% | +15.73% | |
| 5Y Return (annualized) | -2.44% | +9.67% | |
| Volatility (annualized) | 12.5% | 13.6% | |
| Max Drawdown | -50.0% | -33.4% | |
| Fund Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 1992 | Oct 20, 2011 |
MQY vs SCHD Performance
BlackRock MuniYield Quality Fund, Inc (MQY) 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 MQY returned +8.25% while SCHD returned +29.99%. Year to date, MQY is up 3.68% versus a gain of 26.21% for SCHD.
Over three years, MQY compounded at +5.70% per year against +15.73% for SCHD; over five years the annualized figures are -2.44% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +0.56%. 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 12.5% for MQY. 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 -50.0% for MQY 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MQY charges 1.90% per year while SCHD charges 0.06%. On a $10,000 position that is $190 vs $6 annually, a gap of $184 per year that compounds over a long holding period. On income, MQY currently yields 5.56% against 3.31% for SCHD.
Holdings Overlap
MQY and SCHD share 0 holdings out of 301 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, MQY or SCHD?
MQY has an expense ratio of 1.90% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $184 per year of difference.
Which performed better, MQY or SCHD?
Over the past year MQY returned +8.25% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MQY annualized +0.56% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, MQY or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.5% for MQY. Worst drawdown: MQY -50.0% vs SCHD -33.4%.
Should I hold both MQY and SCHD?
MQY and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MQY and SCHD?
MQY and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 301 unique securities.
Which pays a higher dividend, MQY or SCHD?
MQY yields 5.56% while SCHD yields 3.31%, so MQY currently pays the higher dividend yield.
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