NMI 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

MetricNMISCHDWinner
Expense Ratio0.73%0.06%
AUM-$103.7B
Dividend Yield4.57%3.31%
Holdings220104
YTD Return+10.80%+25.33%
1Y Return+14.54%+32.31%
3Y Return (annualized)+9.97%+15.40%
5Y Return (annualized)+2.14%+9.70%
Volatility (annualized)11.0%13.6%
Max Drawdown-34.4%-33.4%
Fund FamilyNuveenCharles Schwab Asset Management
CategoryTax PreferredEquity
InceptionApr 20, 1988Oct 20, 2011

NMI vs SCHD Performance

Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NMI returned +14.54% while SCHD returned +32.31%. Year to date, NMI is up 10.80% versus a gain of 25.33% for SCHD.

Over three years, NMI compounded at +9.97% per year against +15.40% for SCHD; over five years the annualized figures are +2.14% and +9.70% respectively. Across the full 15-year window we track, SCHD has the edge at +11.45% annualized vs +0.37%. 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 11.0% for NMI. 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 -34.4% for NMI 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NMI charges 0.73% per year while SCHD charges 0.06%. On a $10,000 position that is $73 vs $6 annually, a gap of $67 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

NMI and SCHD share 0 holdings out of 195 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, NMI or SCHD?

NMI has an expense ratio of 0.73% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, NMI or SCHD?

Over the past year NMI returned +14.54% vs +32.31% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NMI annualized +0.37% vs +11.45% for SCHD. Past performance does not guarantee future results.

Which is riskier, NMI or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs SCHD -33.4%.

Should I hold both NMI and SCHD?

NMI and SCHD have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NMI and SCHD?

NMI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 195 unique securities.

Which pays a higher dividend, NMI or SCHD?

NMI yields 4.57% while SCHD yields 3.31%, so NMI currently pays the higher dividend yield.

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