SCHD vs SHYM
Schwab US Dividend Equity ETF vs iShares Short Duration High Yield Muni Active ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SHYM offers more diversification with 114 holdings.
Side-by-Side Comparison
| Metric | SCHD | SHYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.40% | |
| AUM | $103.7B | $799M | |
| Dividend Yield | 3.31% | 4.28% | |
| Holdings | 104 | 421 | |
| YTD Return | +24.26% | -0.47% | |
| 1Y Return | +31.38% | +2.00% | |
| 3Y Return (annualized) | +15.08% | +1.09% | |
| 5Y Return (annualized) | +9.72% | -3.79% | |
| Volatility (annualized) | 13.6% | 9.0% | |
| Max Drawdown | -33.4% | -26.4% | |
| Fund Family | Charles Schwab Asset Management | BlackRock, Inc. (US) | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Mar 16, 2021 |
SCHD vs SHYM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Short Duration High Yield Muni Active ETF (SHYM) is a ETF from BlackRock, Inc. (US). Over the past year SCHD returned +31.38% while SHYM returned +2.00%. Year to date, SCHD is up 24.26% versus a loss of 0.47% for SHYM.
Over three years, SCHD compounded at +15.08% per year against +1.09% for SHYM; over five years the annualized figures are +9.72% and -3.79% respectively. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs -2.36%. 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 9.0% for SHYM. 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 -26.4% for SHYM. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SHYM charges 0.40%. On a $10,000 position that is $6 vs $40 annually, a gap of $34 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.28% for SHYM.
Holdings Overlap
SCHD and SHYM share 0 holdings out of 214 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 SHYM?
SCHD has an expense ratio of 0.06% while SHYM charges 0.40%. SCHD is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, SCHD or SHYM?
Over the past year SCHD returned +31.38% vs +2.00% for SHYM, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), SCHD annualized +11.39% vs -2.36% for SHYM. Past performance does not guarantee future results.
Which is riskier, SCHD or SHYM?
SCHD has been the more volatile fund at 13.6% annualized versus 9.0% for SHYM. Worst drawdown: SCHD -33.4% vs SHYM -26.4%.
Should I hold both SCHD and SHYM?
SCHD and SHYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SHYM?
SCHD and SHYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 214 unique securities.
Which pays a higher dividend, SCHD or SHYM?
SCHD yields 3.31% while SHYM yields 4.28%, so SHYM currently pays the higher dividend yield.
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