SCHD vs SUB
SCHD vs SUB
Schwab US Dividend Equity ETF vs iShares Short-Term National Muni Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SUB offers more diversification with 783 holdings.
Side-by-Side Comparison
| Metric | SCHD | SUB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.07% | |
| AUM | $103.7B | $11.3B | |
| Dividend Yield | 3.31% | 2.52% | |
| Holdings | 104 | 2,925 | |
| YTD Return | +24.26% | +0.84% | |
| 1Y Return | +31.38% | +1.82% | |
| 3Y Return (annualized) | +15.08% | +3.08% | |
| 5Y Return (annualized) | +9.72% | +1.43% | |
| Volatility (annualized) | 13.6% | 1.7% | |
| Max Drawdown | -33.4% | -11.7% | |
| Fund Family | Charles Schwab Asset Management | iShares by BlackRock (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Nov 5, 2008 |
SCHD vs SUB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and iShares Short-Term National Muni Bond ETF (SUB) is a ETF from iShares by BlackRock (US). Over the past year SCHD returned +31.38% while SUB returned +1.82%. Year to date, SCHD is up 24.26% versus a gain of 0.84% for SUB.
Over three years, SCHD compounded at +15.08% per year against +3.08% for SUB; over five years the annualized figures are +9.72% and +1.43% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.81%. 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 1.7% for SUB. 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 -11.7% for SUB. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SUB charges 0.07%. On a $10,000 position that is $6 vs $7 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.52% for SUB.
Holdings Overlap
SCHD and SUB share 0 holdings out of 883 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 SUB?
SCHD has an expense ratio of 0.06% while SUB charges 0.07%. SCHD is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or SUB?
Over the past year SCHD returned +31.38% vs +1.82% for SUB, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs +0.81% for SUB. Past performance does not guarantee future results.
Which is riskier, SCHD or SUB?
SCHD has been the more volatile fund at 13.6% annualized versus 1.7% for SUB. Worst drawdown: SCHD -33.4% vs SUB -11.7%.
Should I hold both SCHD and SUB?
SCHD and SUB have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SUB?
SCHD and SUB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 883 unique securities.
Which pays a higher dividend, SCHD or SUB?
SCHD yields 3.31% while SUB yields 2.52%, so SCHD currently pays the higher dividend yield.
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