RMM vs SCHD
RiverNorth Managed Duration 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 | RMM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 6.83% | 0.06% | |
| AUM | $296M | $103.7B | |
| Dividend Yield | 6.84% | 3.31% | |
| Holdings | 112 | 104 | |
| YTD Return | +10.17% | +26.21% | |
| 1Y Return | +13.24% | +29.99% | |
| 3Y Return (annualized) | +5.40% | +15.73% | |
| 5Y Return (annualized) | -0.82% | +9.67% | |
| Volatility (annualized) | 35.2% | 13.6% | |
| Max Drawdown | -83.8% | -33.4% | |
| Fund Family | RiverNorth | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jul 25, 2019 | Oct 20, 2011 |
RMM vs SCHD Performance
RiverNorth Managed Duration Municipal Income Fund, Inc. (RMM) is a ETF from RiverNorth and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RMM returned +13.24% while SCHD returned +29.99%. Year to date, RMM is up 10.17% versus a gain of 26.21% for SCHD.
Over three years, RMM compounded at +5.40% per year against +15.73% for SCHD; over five years the annualized figures are -0.82% and +9.67% respectively. Across the full 15-year window we track, SCHD has the edge at +11.50% annualized vs -6.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RMM has been the more volatile fund, with annualized monthly volatility of 35.2% 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 -83.8% for RMM 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RMM charges 6.83% per year while SCHD charges 0.06%. On a $10,000 position that is $683 vs $6 annually, a gap of $677 per year that compounds over a long holding period. On income, RMM currently yields 6.84% against 3.31% for SCHD.
Holdings Overlap
RMM and SCHD share 0 holdings out of 158 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, RMM or SCHD?
RMM has an expense ratio of 6.83% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $677 per year of difference.
Which performed better, RMM or SCHD?
Over the past year RMM returned +13.24% vs +29.99% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), RMM annualized -6.41% vs +11.50% for SCHD. Past performance does not guarantee future results.
Which is riskier, RMM or SCHD?
RMM has been the more volatile fund at 35.2% annualized versus 13.6% for SCHD. Worst drawdown: RMM -83.8% vs SCHD -33.4%.
Should I hold both RMM and SCHD?
RMM and SCHD have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RMM and SCHD?
RMM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 158 unique securities.
Which pays a higher dividend, RMM or SCHD?
RMM yields 6.84% while SCHD yields 3.31%, so RMM currently pays the higher dividend yield.
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