SCHD vs ZTAX
Schwab US Dividend Equity ETF vs X-Square Municipal Income Tax Free ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | SCHD | ZTAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.92% | |
| AUM | $108.7B | $5M | |
| Dividend Yield | 3.13% | 4.72% | |
| Holdings | 104 | 17 | |
| YTD Return | +28.70% | +1.48% | |
| 1Y Return | +32.27% | +7.61% | |
| 3Y Return (annualized) | +17.27% | +5.07% | |
| 5Y Return (annualized) | +10.23% | - | |
| Volatility (annualized) | 13.7% | 8.2% | |
| Max Drawdown | -33.4% | -15.3% | |
| Fund Family | Charles Schwab Asset Management | X-Square Capital | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | May 17, 2023 |
SCHD vs ZTAX Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and X-Square Municipal Income Tax Free ETF (ZTAX) is a ETF from X-Square Capital. Over the past year SCHD returned +32.27% while ZTAX returned +7.61%. Year to date, SCHD is up 28.70% versus a gain of 1.48% for ZTAX.
Over three years, SCHD compounded at +17.27% per year against +5.07% for ZTAX. Across the full 3-year window we track, SCHD has the edge at +11.63% annualized vs +6.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 8.2% for ZTAX. 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 -15.3% for ZTAX. 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while ZTAX charges 0.92%. On a $10,000 position that is $6 vs $92 annually, a gap of $86 per year that compounds over a long holding period. On income, SCHD currently yields 3.13% against 4.72% for ZTAX.
Holdings Overlap
SCHD and ZTAX share 0 holdings out of 112 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 ZTAX?
SCHD has an expense ratio of 0.06% while ZTAX charges 0.92%. SCHD is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, SCHD or ZTAX?
Over the past year SCHD returned +32.27% vs +7.61% for ZTAX, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), SCHD annualized +11.63% vs +6.07% for ZTAX. Past performance does not guarantee future results.
Which is riskier, SCHD or ZTAX?
SCHD has been the more volatile fund at 13.7% annualized versus 8.2% for ZTAX. Worst drawdown: SCHD -33.4% vs ZTAX -15.3%.
Should I hold both SCHD and ZTAX?
SCHD and ZTAX have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and ZTAX?
SCHD and ZTAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, SCHD or ZTAX?
SCHD yields 3.13% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.