NEA vs SCHD
Nuveen AMT-Free Quality Municipal Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NEA offers more diversification with 405 holdings.
Side-by-Side Comparison
| Metric | NEA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.53% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.11% | 3.31% | |
| Holdings | 1,108 | 104 | |
| YTD Return | +1.95% | +25.33% | |
| 1Y Return | +12.13% | +32.31% | |
| 3Y Return (annualized) | +9.52% | +15.40% | |
| 5Y Return (annualized) | -0.76% | +9.70% | |
| Volatility (annualized) | 13.1% | 13.6% | |
| Max Drawdown | -48.1% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 21, 2002 | Oct 20, 2011 |
NEA vs SCHD Performance
Nuveen AMT-Free Quality Municipal Income Fund (NEA) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NEA returned +12.13% while SCHD returned +32.31%. Year to date, NEA is up 1.95% versus a gain of 25.33% for SCHD.
Over three years, NEA compounded at +9.52% per year against +15.40% for SCHD; over five years the annualized figures are -0.76% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.17%. 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 13.1% for NEA. 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 -48.1% for NEA 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NEA charges 3.53% per year while SCHD charges 0.06%. On a $10,000 position that is $353 vs $6 annually, a gap of $347 per year that compounds over a long holding period. On income, NEA currently yields 7.11% against 3.31% for SCHD.
Holdings Overlap
NEA and SCHD share 0 holdings out of 505 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, NEA or SCHD?
NEA has an expense ratio of 3.53% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $347 per year of difference.
Which performed better, NEA or SCHD?
Over the past year NEA returned +12.13% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NEA annualized +0.17% vs +11.45% for SCHD. Past performance does not guarantee future results.
Which is riskier, NEA or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.1% for NEA. Worst drawdown: NEA -48.1% vs SCHD -33.4%.
Should I hold both NEA and SCHD?
NEA and SCHD have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NEA and SCHD?
NEA and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, NEA or SCHD?
NEA yields 7.11% while SCHD yields 3.31%, so NEA currently pays the higher dividend yield.
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