SCHD vs TAXT
SCHD vs TAXT
Schwab US Dividend Equity ETF vs Northern Trust Tax-Exempt Bond ETF
Quick Verdict
TAXT has a lower expense ratio. SCHD delivered stronger 1-year returns. TAXT offers more diversification with 182 holdings.
Side-by-Side Comparison
| Metric | SCHD | TAXT | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $103.7B | $60M | |
| Dividend Yield | 3.31% | 2.54% | |
| Holdings | 104 | 441 | |
| YTD Return | +24.26% | +0.44% | |
| 1Y Return | +31.38% | +4.59% | |
| 3Y Return (annualized) | +15.08% | - | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 13.6% | 3.8% | |
| Max Drawdown | -33.4% | -2.5% | |
| Fund Family | Charles Schwab Asset Management | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Feb 28, 2025 |
SCHD vs TAXT Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Northern Trust Tax-Exempt Bond ETF (TAXT) is a ETF from Northern Trust Asset Management. Over the past year SCHD returned +31.38% while TAXT returned +4.59%. Year to date, SCHD is up 24.26% versus a gain of 0.44% for TAXT.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.8% for TAXT. 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 -2.5% for TAXT. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TAXT 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 3.31% against 2.54% for TAXT.
Holdings Overlap
SCHD and TAXT share 0 holdings out of 282 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 TAXT?
SCHD has an expense ratio of 0.06% while TAXT charges 0.05%. TAXT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, SCHD or TAXT?
Over the past year SCHD returned +31.38% vs +4.59% for TAXT, so SCHD leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, SCHD or TAXT?
SCHD has been the more volatile fund at 13.6% annualized versus 3.8% for TAXT. Worst drawdown: SCHD -33.4% vs TAXT -2.5%.
Should I hold both SCHD and TAXT?
SCHD and TAXT have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TAXT?
SCHD and TAXT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 282 unique securities.
Which pays a higher dividend, SCHD or TAXT?
SCHD yields 3.31% while TAXT yields 2.54%, so SCHD currently pays the higher dividend yield.
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