MUS vs SCHD

MUS vs SCHD

Which is better, MUS or SCHD?

Municipal Bond against Large Cap Value.

SCHD has a lower expense ratio. SCHD led over 1Y and the full window.

Lower Fees: SCHDHigher Returns: SCHD

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricMUSSCHD
Expense Ratio1.50%0.06%Best
AUM$181M$112.1B
Dividend Yield0.78%3.00%
Holdings233103
Volatility (annualized)11.4%Best13.0%
Max Drawdown-29.7%Best-33.4%
$10,000 over 9.4 years$17,156$28,176Best
Fund FamilyBlackRock, Inc. (US)Charles Schwab Asset Management
CategoryTax PreferredEquity
StyleMunicipal BondLarge Cap Value
InceptionMay 1, 1998Oct 20, 2011

Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.

The two price series end 2015 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. MUS has data through Mar 5, 2021 and SCHD through Sep 10, 2026.

Volatility and max drawdown, and the $10,000 over 9.4 years row, are measured over the window both funds cover: Oct 20, 2011 to Mar 5, 2021 (9.4 years).

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.0% compared with 11.4% 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 -29.7% for MUS and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.14. They move largely independently of each other.

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 3.00% for SCHD.

You are not choosing between two funds in isolation.

Whichever of MUS and SCHD you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MUSSCHD

Free for up to 10 holdings. No account needed.

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, by $144 a year on a $10,000 investment.

Which is riskier, MUS or SCHD?

SCHD has been the more volatile fund at 13.0% annualized versus 11.4% for MUS. Worst drawdown: MUS -29.7% vs SCHD -33.4%.

Should I hold both MUS and SCHD?

MUS and SCHD have a monthly-return correlation of 0.14, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, MUS or SCHD?

MUS yields 0.78% while SCHD yields 3.00%, so SCHD currently pays the higher dividend yield.

Is SCHD better than MUS?

SCHD has a lower expense ratio. SCHD led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.