SCHD vs TAFI
SCHD vs TAFI
Schwab US Dividend Equity ETF vs AB Tax Aware Short Duration Municipal ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TAFI offers more diversification with 179 holdings.
Side-by-Side Comparison
| Metric | SCHD | TAFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.27% | |
| AUM | $103.7B | $1.4B | |
| Dividend Yield | 3.31% | 2.98% | |
| Holdings | 104 | 624 | |
| YTD Return | +24.26% | +0.96% | |
| 1Y Return | +31.38% | +2.52% | |
| 3Y Return (annualized) | +15.08% | +3.52% | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 2.3% | |
| Max Drawdown | -33.4% | -1.9% | |
| Fund Family | Charles Schwab Asset Management | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Sep 13, 2022 |
SCHD vs TAFI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and AB Tax Aware Short Duration Municipal ETF (TAFI) is a ETF from AllianceBernstein L.P.. Over the past year SCHD returned +31.38% while TAFI returned +2.52%. Year to date, SCHD is up 24.26% versus a gain of 0.96% for TAFI.
Over three years, SCHD compounded at +15.08% per year against +3.52% for TAFI. Across the full 4-year window we track, SCHD has the edge at +11.39% annualized vs +3.27%. 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 2.3% for TAFI. 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 -1.9% for TAFI. 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 TAFI charges 0.27%. On a $10,000 position that is $6 vs $27 annually, a gap of $21 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.98% for TAFI.
Holdings Overlap
SCHD and TAFI share 0 holdings out of 279 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 TAFI?
SCHD has an expense ratio of 0.06% while TAFI charges 0.27%. SCHD is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, SCHD or TAFI?
Over the past year SCHD returned +31.38% vs +2.52% for TAFI, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), SCHD annualized +11.39% vs +3.27% for TAFI. Past performance does not guarantee future results.
Which is riskier, SCHD or TAFI?
SCHD has been the more volatile fund at 13.6% annualized versus 2.3% for TAFI. Worst drawdown: SCHD -33.4% vs TAFI -1.9%.
Should I hold both SCHD and TAFI?
SCHD and TAFI 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 TAFI?
SCHD and TAFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 279 unique securities.
Which pays a higher dividend, SCHD or TAFI?
SCHD yields 3.31% while TAFI yields 2.98%, so SCHD currently pays the higher dividend yield.
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