SCHD vs SCMB
Schwab US Dividend Equity ETF vs Schwab Municipal Bond ETF
Which is better, SCHD or SCMB?
Large Cap Value against Municipal Bond.
SCMB has a lower expense ratio. SCHD led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | SCMB |
|---|---|---|
| Expense Ratio | 0.06% | 0.03%Best |
| AUM | $112.1B | $4.1B |
| Dividend Yield | 3.00% | 3.60% |
| Holdings | 103 | 6,809 |
| YTD Return | +23.60%Best | -2.56% |
| 1Y Return | +28.29%Best | -1.14% |
| 3Y Return (annualized) | +16.25%Best | +2.52% |
| 5Y Return (annualized) | +10.25% | - |
| Volatility (annualized) | 13.4% | 6.1%Best |
| Max Drawdown | -16.1% | -6.1%Best |
| $10,000 over 3.9 years | $17,177Best | $11,091 |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Investment Mangement |
| Category | Equity | Tax Preferred |
| Style | Large Cap Value | Municipal Bond |
| Inception | Oct 20, 2011 | Oct 11, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.9 years row, are measured over the window both funds cover: Oct 12, 2022 to Sep 21, 2026 (3.9 years).
SCHD vs SCMB growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.9 years both funds cover.
SCHD vs SCMB Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Schwab Municipal Bond ETF (SCMB) is an ETF from Charles Schwab Investment Mangement. Over the past year SCHD returned +28.29% while SCMB returned -1.14%. Year to date, SCHD is up 23.60% versus a loss of 2.56% for SCMB.
Over three years, SCHD compounded at +16.25% per year against +2.52% for SCMB. Across the full 4-year window we track, SCHD has the edge at +14.88% annualized vs +2.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.4% compared with 6.1% for SCMB. 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 -16.1% for SCHD and -6.1% for SCMB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.56. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while SCMB charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 3.60% for SCMB.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 39 in SCMB, totalling 100.0% and 1.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 39 in SCMB, against full books of 103 and 6,809.
You are not choosing between two funds in isolation.
Whichever of SCHD and SCMB you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or SCMB?
SCHD has an expense ratio of 0.06% while SCMB charges 0.03%. SCMB is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SCHD or SCMB?
Over the past year SCHD returned +28.29% vs -1.14% for SCMB, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +14.88% vs +2.69% for SCMB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or SCMB?
SCHD has been the more volatile fund at 13.4% annualized versus 6.1% for SCMB. Worst drawdown: SCHD -16.1% vs SCMB -6.1%.
Should I hold both SCHD and SCMB?
SCHD and SCMB have a monthly-return correlation of 0.56, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or SCMB?
SCHD yields 3.00% while SCMB yields 3.60%, so SCMB currently pays the higher dividend yield.
Is SCMB better than SCHD?
SCMB has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.