PMM vs SCHD
Putnam Managed Municipal Income Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PMM offers more diversification with 124 holdings.
Side-by-Side Comparison
| Metric | PMM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.06% | |
| AUM | $2,812.2 | $103.7B | |
| Dividend Yield | 4.77% | 3.31% | |
| Holdings | 396 | 104 | |
| YTD Return | +5.05% | +25.58% | |
| 1Y Return | +13.40% | +31.06% | |
| 3Y Return (annualized) | +8.12% | +15.55% | |
| 5Y Return (annualized) | -1.09% | +9.61% | |
| Volatility (annualized) | 13.4% | 13.6% | |
| Max Drawdown | -63.9% | -33.4% | |
| Fund Family | Putnam Investments | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 24, 1989 | Oct 20, 2011 |
PMM vs SCHD Performance
Putnam Managed Municipal Income Trust (PMM) is a ETF from Putnam Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PMM returned +13.40% while SCHD returned +31.06%. Year to date, PMM is up 5.05% versus a gain of 25.58% for SCHD.
Over three years, PMM compounded at +8.12% per year against +15.55% for SCHD; over five years the annualized figures are -1.09% and +9.61% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs -0.88%. 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 13.4% for PMM. 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 -63.9% for PMM 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
PMM charges 0.98% per year while SCHD charges 0.06%. On a $10,000 position that is $98 vs $6 annually, a gap of $92 per year that compounds over a long holding period. On income, PMM currently yields 4.77% against 3.31% for SCHD.
Holdings Overlap
PMM and SCHD share 0 holdings out of 224 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, PMM or SCHD?
PMM has an expense ratio of 0.98% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, PMM or SCHD?
Over the past year PMM returned +13.40% vs +31.06% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PMM annualized -0.88% vs +11.46% for SCHD. Past performance does not guarantee future results.
Which is riskier, PMM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.4% for PMM. Worst drawdown: PMM -63.9% vs SCHD -33.4%.
Should I hold both PMM and SCHD?
PMM 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 PMM and SCHD?
PMM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 224 unique securities.
Which pays a higher dividend, PMM or SCHD?
PMM yields 4.77% while SCHD yields 3.31%, so PMM currently pays the higher dividend yield.
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