SCHD vs VMO
SCHD vs VMO
Schwab US Dividend Equity ETF vs Invesco Municipal Opportunity Trust
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VMO offers more diversification with 273 holdings.
Side-by-Side Comparison
| Metric | SCHD | VMO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.86% | |
| AUM | $103.7B | $2,934.54 | |
| Dividend Yield | 3.31% | 7.43% | |
| Holdings | 104 | 544 | |
| YTD Return | +24.26% | +7.19% | |
| 1Y Return | +31.38% | +15.33% | |
| 3Y Return (annualized) | +15.08% | +9.09% | |
| 5Y Return (annualized) | +9.72% | -0.53% | |
| Volatility (annualized) | 13.6% | 12.2% | |
| Max Drawdown | -33.4% | -60.0% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Apr 24, 1992 |
SCHD vs VMO Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco Municipal Opportunity Trust (VMO) is a ETF from Invesco (US). Over the past year SCHD returned +31.38% while VMO returned +15.33%. Year to date, SCHD is up 24.26% versus a gain of 7.19% for VMO.
Over three years, SCHD compounded at +15.08% per year against +9.09% for VMO; over five years the annualized figures are +9.72% and -0.53% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.05%. 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 12.2% 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 -60.0% for VMO. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.31% against 7.43% for VMO.
Holdings Overlap
SCHD and VMO share 0 holdings out of 373 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 VMO?
SCHD has an expense ratio of 0.06% while VMO charges 1.86%. SCHD is the cheaper option. On a $10,000 investment, that is $180 per year of difference.
Which performed better, SCHD or VMO?
Over the past year SCHD returned +31.38% vs +15.33% for VMO, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.39% vs -0.05% for VMO. Past performance does not guarantee future results.
Which is riskier, SCHD or VMO?
SCHD has been the more volatile fund at 13.6% annualized versus 12.2% for VMO. Worst drawdown: SCHD -33.4% vs VMO -60.0%.
Should I hold both SCHD and VMO?
SCHD and VMO have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VMO?
SCHD and VMO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 373 unique securities.
Which pays a higher dividend, SCHD or VMO?
SCHD yields 3.31% while VMO yields 7.43%, so VMO currently pays the higher dividend yield.
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