SCHD vs SCMB
Schwab US Dividend Equity ETF vs Schwab Municipal Bond ETF
Quick Verdict
SCMB has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | SCHD | SCMB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $103.7B | $3.9B | |
| Dividend Yield | 3.31% | 3.51% | |
| Holdings | 104 | 5,972 | |
| YTD Return | +24.26% | +0.34% | |
| 1Y Return | +31.38% | +4.71% | |
| 3Y Return (annualized) | +15.08% | +3.00% | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 6.0% | |
| Max Drawdown | -33.4% | -6.1% | |
| Fund Family | Charles Schwab Asset Management | Charles Schwab Investment Mangement | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Oct 11, 2022 |
SCHD vs SCMB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Schwab Municipal Bond ETF (SCMB) is a ETF from Charles Schwab Investment Mangement. Over the past year SCHD returned +31.38% while SCMB returned +4.71%. Year to date, SCHD is up 24.26% versus a gain of 0.34% for SCMB.
Over three years, SCHD compounded at +15.08% per year against +3.00% for SCMB. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +3.57%. 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 6.0% 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 -33.4% for SCHD and -6.1% for SCMB. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.31% against 3.51% for SCMB.
Holdings Overlap
SCHD and SCMB share 0 holdings out of 142 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, SCHD or SCMB?
SCHD has an expense ratio of 0.06% while SCMB charges 0.03%. SCMB is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SCHD or SCMB?
Over the past year SCHD returned +31.38% vs +4.71% for SCMB, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.39% vs +3.57% for SCMB. Past performance does not guarantee future results.
Which is riskier, SCHD or SCMB?
SCHD has been the more volatile fund at 13.6% annualized versus 6.0% for SCMB. Worst drawdown: SCHD -33.4% vs SCMB -6.1%.
Should I hold both SCHD and SCMB?
SCHD and SCMB have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SCMB?
SCHD and SCMB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, SCHD or SCMB?
SCHD yields 3.31% while SCMB yields 3.51%, so SCMB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.