NAZ vs SCHD
Nuveen Arizona Quality Municipal Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | NAZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.72% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 6.80% | 3.31% | |
| Holdings | 219 | 104 | |
| YTD Return | +8.55% | +25.58% | |
| 1Y Return | +12.18% | +31.06% | |
| 3Y Return (annualized) | +12.49% | +15.55% | |
| 5Y Return (annualized) | +0.23% | +9.61% | |
| Volatility (annualized) | 12.3% | 13.6% | |
| Max Drawdown | -49.5% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 1992 | Oct 20, 2011 |
NAZ vs SCHD Performance
Nuveen Arizona Quality Municipal Income Fund (NAZ) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NAZ returned +12.18% while SCHD returned +31.06%. Year to date, NAZ is up 8.55% versus a gain of 25.58% for SCHD.
Over three years, NAZ compounded at +12.49% per year against +15.55% for SCHD; over five years the annualized figures are +0.23% and +9.61% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +0.66%. 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 12.3% for NAZ. 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 -49.5% for NAZ 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAZ charges 3.72% per year while SCHD charges 0.06%. On a $10,000 position that is $372 vs $6 annually, a gap of $366 per year that compounds over a long holding period. On income, NAZ currently yields 6.80% against 3.31% for SCHD.
Holdings Overlap
NAZ and SCHD share 0 holdings out of 139 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, NAZ or SCHD?
NAZ has an expense ratio of 3.72% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $366 per year of difference.
Which performed better, NAZ or SCHD?
Over the past year NAZ returned +12.18% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NAZ annualized +0.66% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, NAZ or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 12.3% for NAZ. Worst drawdown: NAZ -49.5% vs SCHD -33.4%.
Should I hold both NAZ and SCHD?
NAZ and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAZ and SCHD?
NAZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, NAZ or SCHD?
NAZ yields 6.80% while SCHD yields 3.31%, so NAZ currently pays the higher dividend yield.
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