SCHD vs SMMU
Schwab US Dividend Equity ETF vs PIMCO Short Term Municipal Bond Active Exchange-Traded Fund
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SMMU offers more diversification with 221 holdings.
Side-by-Side Comparison
| Metric | SCHD | SMMU | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.35% | |
| AUM | $103.7B | $1.1B | |
| Dividend Yield | 3.31% | 2.81% | |
| Holdings | 104 | 329 | |
| YTD Return | +25.58% | +1.04% | |
| 1Y Return | +31.06% | +2.41% | |
| 3Y Return (annualized) | +15.55% | +3.48% | |
| 5Y Return (annualized) | +9.61% | +1.89% | |
| Volatility (annualized) | 13.6% | 1.6% | |
| Max Drawdown | -33.4% | -5.1% | |
| Fund Family | Charles Schwab Asset Management | PIMCO (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Feb 1, 2010 |
SCHD vs SMMU Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and PIMCO Short Term Municipal Bond Active Exchange-Traded Fund (SMMU) is a ETF from PIMCO (US). Over the past year SCHD returned +31.06% while SMMU returned +2.41%. Year to date, SCHD is up 25.58% versus a gain of 1.04% for SMMU.
Over three years, SCHD compounded at +15.55% per year against +3.48% for SMMU; over five years the annualized figures are +9.61% and +1.89% respectively. Across the full 15-year window we track, SCHD has the edge at +11.46% annualized vs +0.76%. 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 1.6% for SMMU. 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 -5.1% for SMMU. 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SMMU charges 0.35%. On a $10,000 position that is $6 vs $35 annually, a gap of $29 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.81% for SMMU.
Holdings Overlap
SCHD and SMMU share 0 holdings out of 321 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 SMMU?
SCHD has an expense ratio of 0.06% while SMMU charges 0.35%. SCHD is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, SCHD or SMMU?
Over the past year SCHD returned +31.06% vs +2.41% for SMMU, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.46% vs +0.76% for SMMU. Past performance does not guarantee future results.
Which is riskier, SCHD or SMMU?
SCHD has been the more volatile fund at 13.6% annualized versus 1.6% for SMMU. Worst drawdown: SCHD -33.4% vs SMMU -5.1%.
Should I hold both SCHD and SMMU?
SCHD and SMMU have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SMMU?
SCHD and SMMU share 0 common holdings with a 0.0% weight overlap. Combined, they hold 321 unique securities.
Which pays a higher dividend, SCHD or SMMU?
SCHD yields 3.31% while SMMU yields 2.81%, so SCHD currently pays the higher dividend yield.
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