NMCO vs SCHD
NMCO vs SCHD
Nuveen Municipal Credit Opportunities Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NMCO offers more diversification with 155 holdings.
Side-by-Side Comparison
| Metric | NMCO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 4.50% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.60% | 3.31% | |
| Holdings | 430 | 104 | |
| YTD Return | +7.53% | +24.26% | |
| 1Y Return | +12.13% | +31.38% | |
| 3Y Return (annualized) | +4.91% | +15.08% | |
| 5Y Return (annualized) | -1.71% | +9.72% | |
| Volatility (annualized) | 20.2% | 13.6% | |
| Max Drawdown | -43.0% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 16, 2019 | Oct 20, 2011 |
NMCO vs SCHD Performance
Nuveen Municipal Credit Opportunities Fund (NMCO) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NMCO returned +12.13% while SCHD returned +31.38%. Year to date, NMCO is up 7.53% versus a gain of 24.26% for SCHD.
Over three years, NMCO compounded at +4.91% per year against +15.08% for SCHD; over five years the annualized figures are -1.71% and +9.72% respectively. Across the full 7-year window we track, SCHD has the edge at +11.39% annualized vs -0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NMCO has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 13.6% for SCHD. 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 -43.0% for NMCO 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMCO charges 4.50% per year while SCHD charges 0.06%. On a $10,000 position that is $450 vs $6 annually, a gap of $444 per year that compounds over a long holding period. On income, NMCO currently yields 7.60% against 3.31% for SCHD.
Holdings Overlap
NMCO and SCHD share 0 holdings out of 255 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, NMCO or SCHD?
NMCO has an expense ratio of 4.50% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $444 per year of difference.
Which performed better, NMCO or SCHD?
Over the past year NMCO returned +12.13% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), NMCO annualized -0.38% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, NMCO or SCHD?
NMCO has been the more volatile fund at 20.2% annualized versus 13.6% for SCHD. Worst drawdown: NMCO -43.0% vs SCHD -33.4%.
Should I hold both NMCO and SCHD?
NMCO and SCHD have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMCO and SCHD?
NMCO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 255 unique securities.
Which pays a higher dividend, NMCO or SCHD?
NMCO yields 7.60% while SCHD yields 3.31%, so NMCO currently pays the higher dividend yield.
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