MUS vs SCHD
BlackRock MuniHoldings Quality Fund, Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MUS offers more diversification with 233 holdings.
Side-by-Side Comparison
| Metric | MUS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.50% | 0.06% | |
| AUM | $181M | $103.7B | |
| Dividend Yield | 0.78% | 3.31% | |
| Holdings | 233 | 104 | |
| 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 Family | BlackRock, Inc. (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 1, 1998 | Oct 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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