RFMZ vs SCHD
RiverNorth Flexible Municipal Income Fund II Inc vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. RFMZ offers more diversification with 126 holdings.
Side-by-Side Comparison
| Metric | RFMZ | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 4.27% | 0.06% | |
| AUM | $351M | $108.7B | |
| Dividend Yield | 6.94% | 3.13% | |
| Holdings | 126 | 104 | |
| YTD Return | +8.36% | +28.70% | |
| 1Y Return | +13.76% | +32.27% | |
| 3Y Return (annualized) | +6.67% | +17.27% | |
| 5Y Return (annualized) | -2.16% | +10.23% | |
| Volatility (annualized) | 15.1% | 13.7% | |
| Max Drawdown | -39.5% | -33.4% | |
| Fund Family | RiverNorth | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 2021 | Oct 20, 2011 |
RFMZ vs SCHD Performance
RiverNorth Flexible Municipal Income Fund II Inc (RFMZ) is a ETF from RiverNorth and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RFMZ returned +13.76% while SCHD returned +32.27%. Year to date, RFMZ is up 8.36% versus a gain of 28.70% for SCHD.
Over three years, RFMZ compounded at +6.67% per year against +17.27% for SCHD; over five years the annualized figures are -2.16% and +10.23% respectively. Across the full 6-year window we track, SCHD has the edge at +11.63% annualized vs -0.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RFMZ has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 13.7% 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 -39.5% for RFMZ 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RFMZ charges 4.27% per year while SCHD charges 0.06%. On a $10,000 position that is $427 vs $6 annually, a gap of $421 per year that compounds over a long holding period. On income, RFMZ currently yields 6.94% against 3.13% for SCHD.
Holdings Overlap
RFMZ and SCHD share 0 holdings out of 159 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, RFMZ or SCHD?
RFMZ has an expense ratio of 4.27% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $421 per year of difference.
Which performed better, RFMZ or SCHD?
Over the past year RFMZ returned +13.76% vs +32.27% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (6 years), RFMZ annualized -0.45% vs +11.63% for SCHD. Past performance does not guarantee future results.
Which is riskier, RFMZ or SCHD?
RFMZ has been the more volatile fund at 15.1% annualized versus 13.7% for SCHD. Worst drawdown: RFMZ -39.5% vs SCHD -33.4%.
Should I hold both RFMZ and SCHD?
RFMZ and SCHD have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RFMZ and SCHD?
RFMZ and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 159 unique securities.
Which pays a higher dividend, RFMZ or SCHD?
RFMZ yields 6.94% while SCHD yields 3.13%, so RFMZ currently pays the higher dividend yield.
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