MUNI vs SCHD
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MUNI offers more diversification with 379 holdings.
Side-by-Side Comparison
| Metric | MUNI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.06% | |
| AUM | $3.1B | $103.7B | |
| Dividend Yield | 3.28% | 3.31% | |
| Holdings | 580 | 104 | |
| YTD Return | +0.60% | +24.26% | |
| 1Y Return | +4.45% | +31.38% | |
| 3Y Return (annualized) | +3.66% | +15.08% | |
| 5Y Return (annualized) | +1.05% | +9.72% | |
| Volatility (annualized) | 3.9% | 13.6% | |
| Max Drawdown | -11.2% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 30, 2009 | Oct 20, 2011 |
MUNI vs SCHD Performance
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MUNI returned +4.45% while SCHD returned +31.38%. Year to date, MUNI is up 0.60% versus a gain of 24.26% for SCHD.
Over three years, MUNI compounded at +3.66% per year against +15.08% for SCHD; over five years the annualized figures are +1.05% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +1.13%. 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 3.9% for MUNI. 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 -11.2% for MUNI 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUNI charges 0.35% per year while SCHD charges 0.06%. On a $10,000 position that is $35 vs $6 annually, a gap of $29 per year that compounds over a long holding period. On income, MUNI currently yields 3.28% against 3.31% for SCHD.
Holdings Overlap
MUNI and SCHD share 0 holdings out of 479 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, MUNI or SCHD?
MUNI has an expense ratio of 0.35% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, MUNI or SCHD?
Over the past year MUNI returned +4.45% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MUNI annualized +1.13% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MUNI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 3.9% for MUNI. Worst drawdown: MUNI -11.2% vs SCHD -33.4%.
Should I hold both MUNI and SCHD?
MUNI and SCHD have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUNI and SCHD?
MUNI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 479 unique securities.
Which pays a higher dividend, MUNI or SCHD?
MUNI yields 3.28% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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