MUS vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MUS offers more diversification with 233 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: MUS

Side-by-Side Comparison

MetricMUSSCHDWinner
Expense Ratio1.50%0.06%
AUM$181M$103.7B
Dividend Yield0.78%3.31%
Holdings233104
YTD Return-1.56%+25.62%
1Y Return+4.00%+32.62%
3Y Return (annualized)+5.89%+15.58%
5Y Return (annualized)+4.30%+9.63%
Volatility (annualized)12.2%13.6%
Max Drawdown-41.3%-33.4%
Fund FamilyBlackRock, Inc. (US)Charles Schwab Asset Management
CategoryTax PreferredEquity
InceptionMay 1, 1998Oct 20, 2011

MUS vs SCHD Performance

BlackRock MuniHoldings Quality Fund, Inc. (MUS) 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 MUS returned +4.00% while SCHD returned +32.62%. Year to date, MUS is down 1.56% versus a gain of 25.62% for SCHD.

Over three years, MUS compounded at +5.89% per year against +15.58% for SCHD; over five years the annualized figures are +4.30% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +8.27%. 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 12.2% for MUS. 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 -41.3% for MUS 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUS charges 1.50% per year while SCHD charges 0.06%. On a $10,000 position that is $150 vs $6 annually, a gap of $144 per year that compounds over a long holding period. On income, MUS currently yields 0.78% against 3.31% for SCHD.

Frequently Asked Questions

Which is cheaper, MUS or SCHD?

MUS has an expense ratio of 1.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $144 per year of difference.

Which performed better, MUS or SCHD?

Over the past year MUS returned +4.00% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MUS annualized +8.27% vs +11.47% for SCHD. Past performance does not guarantee future results.

Which is riskier, MUS or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 12.2% for MUS. Worst drawdown: MUS -41.3% vs SCHD -33.4%.

Should I hold both MUS and SCHD?

MUS and SCHD have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MUS or SCHD?

MUS yields 0.78% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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