SCHD vs TAXM
Schwab US Dividend Equity ETF vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
Which is better, SCHD or TAXM?
Large Cap Value against Municipal Bond.
SCHD has a lower expense ratio. SCHD led over 1Y 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 | TAXM |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.35% |
| AUM | $112.1B | $41M |
| Dividend Yield | 3.00% | 3.30% |
| Holdings | 103 | 160 |
| YTD Return | +24.04%Best | -1.77% |
| 1Y Return | +27.95%Best | -0.46% |
| 3Y Return (annualized) | +15.51% | - |
| 5Y Return (annualized) | +9.80% | - |
| Volatility (annualized) | 14.1% | 3.9%Best |
| Max Drawdown | -13.0% | -3.7%Best |
| $10,000 over 1.5 years | $13,073Best | $10,188 |
| Fund Family | Charles Schwab Asset Management | BondBloxx |
| Category | Equity | Tax Preferred |
| Style | Large Cap Value | Municipal Bond |
| Inception | Oct 20, 2011 | Mar 13, 2025 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.5 years row, are measured over the window both funds cover: Mar 13, 2025 to Sep 16, 2026 (1.5 years).
SCHD vs TAXM 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 1.5 years both funds cover.
SCHD vs TAXM Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is an ETF from BondBloxx. Over the past year SCHD returned +27.95% while TAXM returned -0.46%. Year to date, SCHD is up 24.04% versus a loss of 1.77% for TAXM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 3.9% for TAXM. 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 -13.0% for SCHD and -3.7% for TAXM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.28. They move largely independently of each other.
Fees and Cost Over Time
SCHD charges 0.06% per year while TAXM charges 0.35%. On a $10,000 position that is $6 vs $35 annually, a gap of $29 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 3.30% for TAXM.
Holdings Overlap
We hold position weights for 100 holdings in SCHD and 69 in TAXM, totalling 100.0% and 32.5% 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 69 in TAXM, against full books of 103 and 160.
You are not choosing between two funds in isolation.
Whichever of SCHD and TAXM 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 TAXM?
SCHD has an expense ratio of 0.06% while TAXM charges 0.35%. SCHD is the cheaper option, by $29 a year on a $10,000 investment.
Which performed better, SCHD or TAXM?
Over the past year SCHD returned +27.95% vs -0.46% for TAXM, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +19.56% vs +1.25% for TAXM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or TAXM?
SCHD has been the more volatile fund at 14.1% annualized versus 3.9% for TAXM. Worst drawdown: SCHD -13.0% vs TAXM -3.7%.
Should I hold both SCHD and TAXM?
SCHD and TAXM have a monthly-return correlation of 0.28, 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 TAXM?
SCHD yields 3.00% while TAXM yields 3.30%, so TAXM currently pays the higher dividend yield.
Is TAXM better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.