NKX vs SCHD
Nuveen California 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. NKX offers more diversification with 101 holdings.
Side-by-Side Comparison
| Metric | NKX | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 4.02% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.49% | 3.31% | |
| Holdings | 214 | 104 | |
| YTD Return | +4.23% | +26.21% | |
| 1Y Return | +11.28% | +29.99% | |
| 3Y Return (annualized) | +10.31% | +15.73% | |
| 5Y Return (annualized) | +0.22% | +9.67% | |
| Volatility (annualized) | 13.5% | 13.6% | |
| Max Drawdown | -49.0% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 2002 | Oct 20, 2011 |
NKX vs SCHD Performance
Nuveen California AMT-Free Quality Municipal Income Fund (NKX) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NKX returned +11.28% while SCHD returned +29.99%. Year to date, NKX is up 4.23% versus a gain of 26.21% for SCHD.
Over three years, NKX compounded at +10.31% per year against +15.73% for SCHD; over five years the annualized figures are +0.22% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs +0.52%. 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 13.5% for NKX. 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 -49.0% for NKX 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NKX charges 4.02% per year while SCHD charges 0.06%. On a $10,000 position that is $402 vs $6 annually, a gap of $396 per year that compounds over a long holding period. On income, NKX currently yields 7.49% against 3.31% for SCHD.
Holdings Overlap
NKX and SCHD share 0 holdings out of 201 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, NKX or SCHD?
NKX has an expense ratio of 4.02% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $396 per year of difference.
Which performed better, NKX or SCHD?
Over the past year NKX returned +11.28% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NKX annualized +0.52% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, NKX or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.5% for NKX. Worst drawdown: NKX -49.0% vs SCHD -33.4%.
Should I hold both NKX and SCHD?
NKX and SCHD have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NKX and SCHD?
NKX and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, NKX or SCHD?
NKX yields 7.49% while SCHD yields 3.31%, so NKX currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.