NBB vs SCHD
NBB vs SCHD
Nuveen Taxable 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 | NBB | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.17% | 3.31% | |
| Holdings | 155 | 104 | |
| 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 Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 28, 2010 | Oct 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
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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