SCHD vs TAXF
Schwab US Dividend Equity ETF vs American Century Diversified Municipal Bond ETF
Which is better, SCHD or TAXF?
Large Cap Value against Municipal Bond.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SCHD | TAXF |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.25% |
| AUM | $112.1B | $680M |
| Dividend Yield | 3.00% | 3.88% |
| Holdings | 103 | 785 |
| YTD Return | +25.07%Best | -1.54% |
| 1Y Return | +27.61%Best | +0.50% |
| 3Y Return (annualized) | +15.74%Best | +3.12% |
| 5Y Return (annualized) | +9.89%Best | +0.27% |
| Volatility (annualized) | 16.6% | 6.0%Best |
| Max Drawdown | -33.4% | -13.9%Best |
| $10,000 over 5 years | $16,025Best | $10,136 |
| Fund Family | Charles Schwab Asset Management | American Century Investments |
| Category | Equity | Tax Preferred |
| Style | Large Cap Value | Municipal Bond |
| Inception | Oct 20, 2011 | Sep 10, 2018 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 12, 2018 to Sep 11, 2026 (8 years).
SCHD vs TAXF growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8 years both funds cover.
SCHD vs TAXF Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and American Century Diversified Municipal Bond ETF (TAXF) is an ETF from American Century Investments. Over the past year SCHD returned +27.61% while TAXF returned +0.50%. Year to date, SCHD is up 25.07% versus a loss of 1.54% for TAXF.
Over three years, SCHD compounded at +15.74% per year against +3.12% for TAXF; over five years the annualized figures are +9.89% and +0.27% respectively. Across the full 8-year window we track, SCHD has the edge at +11.17% annualized vs +1.60%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 6.0% for TAXF. 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 -13.9% for TAXF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.39. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while TAXF charges 0.25%. On a $10,000 position that is $6 vs $25 annually, a gap of $19 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 3.88% for TAXF.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 482 in TAXF, totalling 100.0% and 54.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 100 positions we hold weights for in SCHD and 482 in TAXF, against full books of 103 and 785.
You are not choosing between two funds in isolation.
Whichever of SCHD and TAXF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SCHD or TAXF?
SCHD has an expense ratio of 0.06% while TAXF charges 0.25%. SCHD is the cheaper option, by $19 a year on a $10,000 investment.
Which performed better, SCHD or TAXF?
Over the past year SCHD returned +27.61% vs +0.50% for TAXF, so SCHD leads on 1-year performance. Over the longest common window we track (8 years), SCHD annualized +11.17% vs +1.60% for TAXF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or TAXF?
SCHD has been the more volatile fund at 16.6% annualized versus 6.0% for TAXF. Worst drawdown: SCHD -33.4% vs TAXF -13.9%.
Should I hold both SCHD and TAXF?
SCHD and TAXF have a monthly-return correlation of 0.39, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SCHD or TAXF?
SCHD yields 3.00% while TAXF yields 3.88%, so TAXF currently pays the higher dividend yield.
Is TAXF better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.