SCHD vs VMO
Schwab US Dividend Equity ETF vs Invesco Municipal Opportunity Trust
Which is better, SCHD or VMO?
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 | VMO |
|---|---|---|
| Expense Ratio | 0.06%Best | 1.86% |
| AUM | $112.1B | $2,934.54 |
| Dividend Yield | 3.00% | 7.79% |
| Holdings | 103 | 544 |
| YTD Return | +24.23%Best | +2.41% |
| 1Y Return | +27.90%Best | +4.86% |
| 3Y Return (annualized) | +15.55%Best | +9.49% |
| 5Y Return (annualized) | +9.97%Best | -2.02% |
| Volatility (annualized) | 13.6% | 12.0%Best |
| Max Drawdown | -33.4%Best | -43.2% |
| $10,000 over 5 years | $16,083Best | $9,030 |
| Fund Family | Charles Schwab Asset Management | Invesco (US) |
| Category | Equity | Tax Preferred |
| Style | Large Cap Value | Municipal Bond |
| Inception | Oct 20, 2011 | Apr 24, 1992 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Sep 17, 2026 (14.9 years).
SCHD vs VMO 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
SCHD vs VMO Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and Invesco Municipal Opportunity Trust (VMO) is an ETF from Invesco (US). Over the past year SCHD returned +27.90% while VMO returned +4.86%. Year to date, SCHD is up 24.23% versus a gain of 2.41% for VMO.
Over three years, SCHD compounded at +15.55% per year against +9.49% for VMO; over five years the annualized figures are +9.97% and -2.02% respectively. Across the full 15-year window we track, SCHD has the edge at +11.30% annualized vs -0.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.0% for VMO. 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 -43.2% for VMO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.38. They move together some of the time, and apart the rest.
Fees and Cost Over Time
SCHD charges 0.06% per year while VMO charges 1.86%. On a $10,000 position that is $6 vs $186 annually, a gap of $180 per year that compounds over a long holding period. On income, SCHD currently yields 3.00% against 7.79% for VMO.
You are not choosing between two funds in isolation.
Whichever of SCHD and VMO 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 VMO?
SCHD has an expense ratio of 0.06% while VMO charges 1.86%. SCHD is the cheaper option, by $180 a year on a $10,000 investment.
Which performed better, SCHD or VMO?
Over the past year SCHD returned +27.90% vs +4.86% for VMO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.30% vs -0.19% for VMO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or VMO?
SCHD has been the more volatile fund at 13.6% annualized versus 12.0% for VMO. Worst drawdown: SCHD -33.4% vs VMO -43.2%.
Should I hold both SCHD and VMO?
SCHD and VMO have a monthly-return correlation of 0.38, 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 VMO?
SCHD yields 3.00% while VMO yields 7.79%, so VMO currently pays the higher dividend yield.
Is VMO 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.