SCMB vs TAFM
Schwab Municipal Bond ETF vs AB Tax-Aware Intermediate Municipal ETF
Which is better, SCMB or TAFM?
Nearly the same fund. SCMB costs less.
SCMB has a lower expense ratio. SCMB led over 1Y, TAFM over the full window. The two have moved almost in lockstep, correlation 0.97.
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 | SCMB | TAFM |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.28% |
| AUM | $3.0B | $771M |
| Dividend Yield | 3.60% | 3.71% |
| Holdings | 7,278 | 1,404 |
| YTD Return | -2.98%Tie | -2.98%Tie |
| 1Y Return | -2.09%Best | -2.28% |
| 3Y Return (annualized) | +2.79% | - |
| Volatility (annualized) | 4.4%Best | 4.6% |
| Max Drawdown | -6.7% | -6.6%Best |
| $10,000 over 2.8 years | $10,251 | $10,530Best |
| Fund Family | Charles Schwab Investment Mangement | AllianceBernstein L.P. |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Oct 11, 2022 | Dec 13, 2023 |
Not shown on this pair: 5Y Return (annualized), Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Dec 13, 2023 to Oct 13, 2026 (2.8 years).
SCMB vs TAFM 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 2.8 years both funds cover.
SCMB vs TAFM Performance
Schwab Municipal Bond ETF (SCMB) is an ETF from Charles Schwab Investment Mangement and AB Tax-Aware Intermediate Municipal ETF (TAFM) is an ETF from AllianceBernstein L.P.. Over the past year SCMB returned -2.09% while TAFM returned -2.28%. Year to date, SCMB is down 2.98% versus a loss of 2.98% for TAFM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TAFM has been the more volatile fund, with annualized monthly volatility of 4.6% compared with 4.4% for SCMB. 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 -6.7% for SCMB and -6.6% for TAFM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCMB charges 0.03% per year while TAFM charges 0.28%. On a $10,000 position that is $3 vs $28 annually, a gap of $25 per year that compounds over a long holding period. On income, SCMB currently yields 3.60% against 3.71% for TAFM.
Holdings Overlap
We hold position weights for 30 holdings in SCMB and 240 in TAFM, totalling 1.3% and 31.8% 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 30 positions we hold weights for in SCMB and 240 in TAFM, against full books of 7,278 and 1,404.
You are not choosing between two funds in isolation.
Whichever of SCMB and TAFM 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, SCMB or TAFM?
SCMB has an expense ratio of 0.03% while TAFM charges 0.28%. SCMB is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, SCMB or TAFM?
Over the past year SCMB returned -2.09% vs -2.28% for TAFM, so SCMB leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCMB or TAFM?
TAFM has been the more volatile fund at 4.6% annualized versus 4.4% for SCMB. Worst drawdown: SCMB -6.7% vs TAFM -6.6%.
Should I hold both SCMB and TAFM?
SCMB and TAFM have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, SCMB or TAFM?
SCMB yields 3.60% while TAFM yields 3.71%, so TAFM currently pays the higher dividend yield.
Is TAFM better than SCMB?
SCMB has a lower expense ratio. SCMB led over 1Y, TAFM over the full window. The two have moved almost in lockstep, correlation 0.97. Which one suits a particular account depends on what it is for. This is information, not a recommendation.