NAC vs SCHD
Nuveen California Quality Municipal Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NAC offers more diversification with 140 holdings.
Side-by-Side Comparison
| Metric | NAC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.79% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.49% | 3.31% | |
| Holdings | 346 | 104 | |
| YTD Return | +4.43% | +25.33% | |
| 1Y Return | +13.12% | +32.31% | |
| 3Y Return (annualized) | +11.09% | +15.40% | |
| 5Y Return (annualized) | -0.26% | +9.70% | |
| Volatility (annualized) | 13.0% | 13.6% | |
| Max Drawdown | -53.7% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 26, 1999 | Oct 20, 2011 |
NAC vs SCHD Performance
Nuveen California Quality Municipal Income Fund (NAC) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NAC returned +13.12% while SCHD returned +32.31%. Year to date, NAC is up 4.43% versus a gain of 25.33% for SCHD.
Over three years, NAC compounded at +11.09% per year against +15.40% for SCHD; over five years the annualized figures are -0.26% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.26%. 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 13.0% for NAC. 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 -53.7% for NAC 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAC charges 3.79% per year while SCHD charges 0.06%. On a $10,000 position that is $379 vs $6 annually, a gap of $373 per year that compounds over a long holding period. On income, NAC currently yields 7.49% against 3.31% for SCHD.
Holdings Overlap
NAC and SCHD share 0 holdings out of 240 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, NAC or SCHD?
NAC has an expense ratio of 3.79% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $373 per year of difference.
Which performed better, NAC or SCHD?
Over the past year NAC returned +13.12% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NAC annualized +0.26% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, NAC or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.0% for NAC. Worst drawdown: NAC -53.7% vs SCHD -33.4%.
Should I hold both NAC and SCHD?
NAC and SCHD have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAC and SCHD?
NAC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 240 unique securities.
Which pays a higher dividend, NAC or SCHD?
NAC yields 7.49% while SCHD yields 3.31%, so NAC currently pays the higher dividend yield.
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