SCHD vs TAFM
Schwab US Dividend Equity ETF vs AB Tax-Aware Intermediate Municipal ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TAFM offers more diversification with 221 holdings.
Side-by-Side Comparison
| Metric | SCHD | TAFM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.28% | |
| AUM | $103.7B | $700M | |
| Dividend Yield | 3.31% | 2.79% | |
| Holdings | 104 | 560 | |
| YTD Return | +25.33% | +0.88% | |
| 1Y Return | +32.31% | +5.44% | |
| 3Y Return (annualized) | +15.40% | - | |
| 5Y Return (annualized) | +9.70% | - | |
| Volatility (annualized) | 13.6% | 4.0% | |
| Max Drawdown | -33.4% | -4.7% | |
| Fund Family | Charles Schwab Asset Management | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Dec 13, 2023 |
SCHD vs TAFM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and AB Tax-Aware Intermediate Municipal ETF (TAFM) is a ETF from AllianceBernstein L.P.. Over the past year SCHD returned +32.31% while TAFM returned +5.44%. Year to date, SCHD is up 25.33% versus a gain of 0.88% for TAFM.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.0% for TAFM. 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 -4.7% for TAFM. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TAFM charges 0.28%. On a $10,000 position that is $6 vs $28 annually, a gap of $22 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.79% for TAFM.
Holdings Overlap
SCHD and TAFM 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 TAFM?
SCHD has an expense ratio of 0.06% while TAFM charges 0.28%. SCHD is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, SCHD or TAFM?
Over the past year SCHD returned +32.31% vs +5.44% for TAFM, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.45% vs +3.49% for TAFM. Past performance does not guarantee future results.
Which is riskier, SCHD or TAFM?
SCHD has been the more volatile fund at 13.6% annualized versus 4.0% for TAFM. Worst drawdown: SCHD -33.4% vs TAFM -4.7%.
Should I hold both SCHD and TAFM?
SCHD and TAFM have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TAFM?
SCHD and TAFM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 321 unique securities.
Which pays a higher dividend, SCHD or TAFM?
SCHD yields 3.31% while TAFM yields 2.79%, so SCHD currently pays the higher dividend yield.
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