NMI vs SCHQ
NMI vs SCHQ
Nuveen Municipal Income Fund Inc. vs Schwab Long-Term US Treasury ETF
Quick Verdict
SCHQ has a lower expense ratio. NMI delivered stronger 1-year returns. SCHQ offers more diversification with 98 holdings.
Side-by-Side Comparison
| Metric | NMI | SCHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.03% | |
| AUM | - | $806M | |
| Dividend Yield | 4.57% | 4.73% | |
| Holdings | 220 | 98 | |
| YTD Return | +11.08% | -2.55% | |
| 1Y Return | +14.95% | -1.03% | |
| 3Y Return (annualized) | +9.79% | -0.20% | |
| 5Y Return (annualized) | +2.16% | -6.80% | |
| Volatility (annualized) | 11.0% | 13.5% | |
| Max Drawdown | -34.4% | -46.7% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Fixed Income | |
| Inception | Apr 20, 1988 | Oct 10, 2019 |
NMI vs SCHQ Performance
Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Schwab Long-Term US Treasury ETF (SCHQ) is a ETF from Charles Schwab Asset Management. Over the past year NMI returned +14.95% while SCHQ returned -1.03%. Year to date, NMI is up 11.08% versus a loss of 2.55% for SCHQ.
Over three years, NMI compounded at +9.79% per year against -0.20% for SCHQ; over five years the annualized figures are +2.16% and -6.80% respectively. Across the full 7-year window we track, NMI has the edge at +0.38% annualized vs -4.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHQ has been the more volatile fund, with annualized monthly volatility of 13.5% 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 -46.7% for SCHQ. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMI charges 0.73% per year while SCHQ charges 0.03%. On a $10,000 position that is $73 vs $3 annually, a gap of $70 per year that compounds over a long holding period. On income, NMI currently yields 4.57% against 4.73% for SCHQ.
Frequently Asked Questions
Which is cheaper, NMI or SCHQ?
NMI has an expense ratio of 0.73% while SCHQ charges 0.03%. SCHQ is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, NMI or SCHQ?
Over the past year NMI returned +14.95% vs -1.03% for SCHQ, so NMI leads on 1-year performance. Over the longest common window we track (7 years), NMI annualized +0.38% vs -4.41% for SCHQ. Past performance does not guarantee future results.
Which is riskier, NMI or SCHQ?
SCHQ has been the more volatile fund at 13.5% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs SCHQ -46.7%.
Should I hold both NMI and SCHQ?
NMI and SCHQ have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, NMI or SCHQ?
NMI yields 4.57% while SCHQ yields 4.73%, so SCHQ currently pays the higher dividend yield.
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