RFM vs SCHD
RiverNorth Flexible Municipal Income Fund, Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | RFM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 3.68% | 0.06% | |
| AUM | $96M | $103.7B | |
| Dividend Yield | 6.81% | 3.31% | |
| Holdings | 93 | 104 | |
| YTD Return | +10.63% | +26.21% | |
| 1Y Return | +13.37% | +29.99% | |
| 3Y Return (annualized) | +5.30% | +15.73% | |
| 5Y Return (annualized) | -1.20% | +9.67% | |
| Volatility (annualized) | 15.0% | 13.6% | |
| Max Drawdown | -33.8% | -33.4% | |
| Fund Family | RiverNorth | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Mar 26, 2020 | Oct 20, 2011 |
RFM vs SCHD Performance
RiverNorth Flexible Municipal Income Fund, Inc. (RFM) is a ETF from RiverNorth and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RFM returned +13.37% while SCHD returned +29.99%. Year to date, RFM is up 10.63% versus a gain of 26.21% for SCHD.
Over three years, RFM compounded at +5.30% per year against +15.73% for SCHD; over five years the annualized figures are -1.20% and +9.67% respectively. Across the full 6-year window we track, SCHD has the edge at +11.50% annualized vs +2.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RFM has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -33.8% for RFM 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RFM charges 3.68% per year while SCHD charges 0.06%. On a $10,000 position that is $368 vs $6 annually, a gap of $362 per year that compounds over a long holding period. On income, RFM currently yields 6.81% against 3.31% for SCHD.
Holdings Overlap
RFM and SCHD share 0 holdings out of 147 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, RFM or SCHD?
RFM has an expense ratio of 3.68% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $362 per year of difference.
Which performed better, RFM or SCHD?
Over the past year RFM returned +13.37% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), RFM annualized +2.70% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, RFM or SCHD?
RFM has been the more volatile fund at 15.0% annualized versus 13.6% for SCHD. Worst drawdown: RFM -33.8% vs SCHD -33.4%.
Should I hold both RFM and SCHD?
RFM and SCHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RFM and SCHD?
RFM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 147 unique securities.
Which pays a higher dividend, RFM or SCHD?
RFM yields 6.81% while SCHD yields 3.31%, so RFM currently pays the higher dividend yield.
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