Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricMUCSCHDWinner
Expense Ratio2.82%0.06%
AUM$1.4B$103.7B
Dividend Yield5.40%3.31%
Holdings213104
YTD Return+3.72%+24.26%
1Y Return+10.27%+31.38%
3Y Return (annualized)+6.38%+15.08%
5Y Return (annualized)-2.98%+9.72%
Volatility (annualized)12.8%13.6%
Max Drawdown-56.6%-33.4%
Fund FamilyBlackRock, Inc. (US)Charles Schwab Asset Management
CategoryTax PreferredEquity
InceptionFeb 27, 1998Oct 20, 2011

MUC vs SCHD Performance

BlackRock MuniHoldings California Quality Fund, Inc (MUC) 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 MUC returned +10.27% while SCHD returned +31.38%. Year to date, MUC is up 3.72% versus a gain of 24.26% for SCHD.

Over three years, MUC compounded at +6.38% per year against +15.08% for SCHD; over five years the annualized figures are -2.98% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.21%. 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 12.8% for MUC. 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 -56.6% for MUC 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUC charges 2.82% per year while SCHD charges 0.06%. On a $10,000 position that is $282 vs $6 annually, a gap of $276 per year that compounds over a long holding period. On income, MUC currently yields 5.40% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

MUC and SCHD share 0 holdings out of 184 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, MUC or SCHD?

MUC has an expense ratio of 2.82% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $276 per year of difference.

Which performed better, MUC or SCHD?

Over the past year MUC returned +10.27% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MUC annualized -0.21% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, MUC or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 12.8% for MUC. Worst drawdown: MUC -56.6% vs SCHD -33.4%.

Should I hold both MUC and SCHD?

MUC and SCHD have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUC and SCHD?

MUC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 184 unique securities.

Which pays a higher dividend, MUC or SCHD?

MUC yields 5.40% while SCHD yields 3.31%, so MUC currently pays the higher dividend yield.

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