NBB vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricNBBSCHDWinner
Expense Ratio2.10%0.06%
AUM-$103.7B
Dividend Yield7.17%3.31%
Holdings155104
YTD Return+1.85%+24.26%
1Y Return+3.82%+31.38%
3Y Return (annualized)+8.65%+15.08%
5Y Return (annualized)-1.20%+9.72%
Volatility (annualized)11.1%13.6%
Max Drawdown-33.5%-33.4%
Fund FamilyNuveenCharles Schwab Asset Management
CategoryTax PreferredEquity
InceptionApr 28, 2010Oct 20, 2011

NBB vs SCHD Performance

Nuveen Taxable Municipal Income Fund (NBB) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NBB returned +3.82% while SCHD returned +31.38%. Year to date, NBB is up 1.85% versus a gain of 24.26% for SCHD.

Over three years, NBB compounded at +8.65% per year against +15.08% for SCHD; over five years the annualized figures are -1.20% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.77%. 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 11.1% for NBB. 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 -33.5% for NBB 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NBB charges 2.10% per year while SCHD charges 0.06%. On a $10,000 position that is $210 vs $6 annually, a gap of $204 per year that compounds over a long holding period. On income, NBB currently yields 7.17% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

NBB and SCHD share 0 holdings out of 101 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, NBB or SCHD?

NBB has an expense ratio of 2.10% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $204 per year of difference.

Which performed better, NBB or SCHD?

Over the past year NBB returned +3.82% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NBB annualized +0.77% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, NBB or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 11.1% for NBB. Worst drawdown: NBB -33.5% vs SCHD -33.4%.

Should I hold both NBB and SCHD?

NBB and SCHD have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NBB and SCHD?

NBB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 101 unique securities.

Which pays a higher dividend, NBB or SCHD?

NBB yields 7.17% while SCHD yields 3.31%, so NBB currently pays the higher dividend yield.

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