NMZ vs SCHD
NMZ vs SCHD
Nuveen Municipal High Income Opportunity Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NMZ offers more diversification with 235 holdings.
Side-by-Side Comparison
| Metric | NMZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.75% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.49% | 3.31% | |
| Holdings | 893 | 104 | |
| YTD Return | +5.42% | +24.26% | |
| 1Y Return | +10.50% | +31.38% | |
| 3Y Return (annualized) | +6.76% | +15.08% | |
| 5Y Return (annualized) | -1.81% | +9.72% | |
| Volatility (annualized) | 14.1% | 13.6% | |
| Max Drawdown | -63.5% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 2003 | Oct 20, 2011 |
NMZ vs SCHD Performance
Nuveen Municipal High Income Opportunity Fund (NMZ) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NMZ returned +10.50% while SCHD returned +31.38%. Year to date, NMZ is up 5.42% versus a gain of 24.26% for SCHD.
Over three years, NMZ compounded at +6.76% per year against +15.08% for SCHD; over five years the annualized figures are -1.81% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
NMZ has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -63.5% for NMZ 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMZ charges 3.75% per year while SCHD charges 0.06%. On a $10,000 position that is $375 vs $6 annually, a gap of $369 per year that compounds over a long holding period. On income, NMZ currently yields 7.49% against 3.31% for SCHD.
Holdings Overlap
NMZ and SCHD share 0 holdings out of 335 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, NMZ or SCHD?
NMZ has an expense ratio of 3.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $369 per year of difference.
Which performed better, NMZ or SCHD?
Over the past year NMZ returned +10.50% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NMZ annualized -0.23% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, NMZ or SCHD?
NMZ has been the more volatile fund at 14.1% annualized versus 13.6% for SCHD. Worst drawdown: NMZ -63.5% vs SCHD -33.4%.
Should I hold both NMZ and SCHD?
NMZ and SCHD have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMZ and SCHD?
NMZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 335 unique securities.
Which pays a higher dividend, NMZ or SCHD?
NMZ yields 7.49% while SCHD yields 3.31%, so NMZ currently pays the higher dividend yield.
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