MUB vs SCHD
iShares National Muni Bond ETF vs Schwab US Dividend Equity ETF
Quick Verdict
MUB has a lower expense ratio. SCHD delivered stronger 1-year returns. MUB offers more diversification with 874 holdings.
Side-by-Side Comparison
| Metric | MUB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.06% | |
| AUM | $45.2B | $103.7B | |
| Dividend Yield | 3.16% | 3.31% | |
| Holdings | 6,825 | 104 | |
| YTD Return | +0.29% | +25.33% | |
| 1Y Return | +4.65% | +32.31% | |
| 3Y Return (annualized) | +3.08% | +15.40% | |
| 5Y Return (annualized) | +0.59% | +9.70% | |
| Volatility (annualized) | 5.4% | 13.6% | |
| Max Drawdown | -14.1% | -33.4% | |
| Fund Family | iShares by BlackRock (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 7, 2007 | Oct 20, 2011 |
MUB vs SCHD Performance
iShares National Muni Bond ETF (MUB) is a ETF from iShares by BlackRock (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MUB returned +4.65% while SCHD returned +32.31%. Year to date, MUB is up 0.29% versus a gain of 25.33% for SCHD.
Over three years, MUB compounded at +3.08% per year against +15.40% for SCHD; over five years the annualized figures are +0.59% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.99%. 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 MUB. 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 -14.1% for MUB 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUB charges 0.05% per year while SCHD charges 0.06%. On a $10,000 position that is $5 vs $6 annually, a gap of $1 per year that compounds over a long holding period. On income, MUB currently yields 3.16% against 3.31% for SCHD.
Holdings Overlap
MUB and SCHD share 0 holdings out of 974 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, MUB or SCHD?
MUB has an expense ratio of 0.05% while SCHD charges 0.06%. MUB is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MUB or SCHD?
Over the past year MUB returned +4.65% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MUB annualized +0.99% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, MUB or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.4% for MUB. Worst drawdown: MUB -14.1% vs SCHD -33.4%.
Should I hold both MUB and SCHD?
MUB and SCHD have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUB and SCHD?
MUB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 974 unique securities.
Which pays a higher dividend, MUB or SCHD?
MUB yields 3.16% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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