SCHD vs TAXI
Schwab US Dividend Equity ETF vs Northern Trust Intermediate Tax-Exempt Bond ETF
Quick Verdict
TAXI has a lower expense ratio. SCHD delivered stronger 1-year returns. TAXI offers more diversification with 2,035 holdings.
Side-by-Side Comparison
| Metric | SCHD | TAXI | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $108.7B | $164M | |
| Dividend Yield | 3.13% | 2.27% | |
| Holdings | 104 | 2,035 | |
| YTD Return | +27.67% | +0.11% | |
| 1Y Return | +31.26% | +3.69% | |
| 3Y Return (annualized) | +16.66% | - | |
| 5Y Return (annualized) | +10.18% | - | |
| Volatility (annualized) | 13.6% | 3.3% | |
| Max Drawdown | -33.4% | -2.2% | |
| Fund Family | Charles Schwab Asset Management | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Mar 1, 2025 |
SCHD vs TAXI Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI) is a ETF from Northern Trust Asset Management. Over the past year SCHD returned +31.26% while TAXI returned +3.69%. Year to date, SCHD is up 27.67% versus a gain of 0.11% for TAXI.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.3% for TAXI. 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 -2.2% for TAXI. 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TAXI charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 2.27% for TAXI.
Holdings Overlap
SCHD and TAXI share 0 holdings out of 615 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 TAXI?
SCHD has an expense ratio of 0.06% while TAXI charges 0.05%. TAXI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or TAXI?
Over the past year SCHD returned +31.26% vs +3.69% for TAXI, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), SCHD annualized +11.57% vs +3.61% for TAXI. Past performance does not guarantee future results.
Which is riskier, SCHD or TAXI?
SCHD has been the more volatile fund at 13.6% annualized versus 3.3% for TAXI. Worst drawdown: SCHD -33.4% vs TAXI -2.2%.
Should I hold both SCHD and TAXI?
SCHD and TAXI have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TAXI?
SCHD and TAXI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 615 unique securities.
Which pays a higher dividend, SCHD or TAXI?
SCHD yields 3.13% while TAXI yields 2.27%, so SCHD currently pays the higher dividend yield.
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