NZF vs SCHD
Nuveen Municipal Credit Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. NZF offers more diversification with 254 holdings.
Side-by-Side Comparison
| Metric | NZF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.61% | 0.06% | |
| AUM | - | $103.7B | |
| Dividend Yield | 7.54% | 3.31% | |
| Holdings | 671 | 104 | |
| YTD Return | +1.77% | +25.62% | |
| 1Y Return | +10.87% | +32.62% | |
| 3Y Return (annualized) | +9.83% | +15.58% | |
| 5Y Return (annualized) | -0.81% | +9.63% | |
| Volatility (annualized) | 13.0% | 13.6% | |
| Max Drawdown | -53.7% | -33.4% | |
| Fund Family | Nuveen | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 25, 2001 | Oct 20, 2011 |
NZF vs SCHD Performance
Nuveen Municipal Credit Income Fund (NZF) is a ETF from Nuveen and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year NZF returned +10.87% while SCHD returned +32.62%. Year to date, NZF is up 1.77% versus a gain of 25.62% for SCHD.
Over three years, NZF compounded at +9.83% per year against +15.58% for SCHD; over five years the annualized figures are -0.81% and +9.63% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs +0.54%. 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 13.0% for NZF. 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 -53.7% for NZF 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NZF charges 3.61% per year while SCHD charges 0.06%. On a $10,000 position that is $361 vs $6 annually, a gap of $355 per year that compounds over a long holding period. On income, NZF currently yields 7.54% against 3.31% for SCHD.
Holdings Overlap
NZF and SCHD share 0 holdings out of 354 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, NZF or SCHD?
NZF has an expense ratio of 3.61% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $355 per year of difference.
Which performed better, NZF or SCHD?
Over the past year NZF returned +10.87% vs +32.62% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), NZF annualized +0.54% vs +11.47% for SCHD. Past performance does not guarantee future results.
Which is riskier, NZF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.0% for NZF. Worst drawdown: NZF -53.7% vs SCHD -33.4%.
Should I hold both NZF and SCHD?
NZF and SCHD have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NZF and SCHD?
NZF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 354 unique securities.
Which pays a higher dividend, NZF or SCHD?
NZF yields 7.54% while SCHD yields 3.31%, so NZF currently pays the higher dividend yield.
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