CGHM vs SCHD
CGHM vs SCHD
Capital Group Municipal High-Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. CGHM offers more diversification with 562 holdings.
Side-by-Side Comparison
| Metric | CGHM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.06% | |
| AUM | $3.3B | $103.7B | |
| Dividend Yield | 3.54% | 3.31% | |
| Holdings | 3,277 | 104 | |
| YTD Return | +2.12% | +23.53% | |
| 1Y Return | +7.86% | +30.95% | |
| 3Y Return (annualized) | - | +14.72% | |
| 5Y Return (annualized) | - | +9.56% | |
| Volatility (annualized) | 4.5% | 13.6% | |
| Max Drawdown | -5.9% | -33.4% | |
| Fund Family | Capital Group (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 25, 2024 | Oct 20, 2011 |
CGHM vs SCHD Performance
Capital Group Municipal High-Income ETF (CGHM) is a ETF from Capital Group (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CGHM returned +7.86% while SCHD returned +30.95%. Year to date, CGHM is up 2.12% versus a gain of 23.53% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.5% for CGHM. 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 -5.9% for CGHM and -33.4% for SCHD. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGHM charges 0.34% per year while SCHD charges 0.06%. On a $10,000 position that is $34 vs $6 annually, a gap of $28 per year that compounds over a long holding period. On income, CGHM currently yields 3.54% against 3.31% for SCHD.
Holdings Overlap
CGHM and SCHD share 0 holdings out of 662 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, CGHM or SCHD?
CGHM has an expense ratio of 0.34% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, CGHM or SCHD?
Over the past year CGHM returned +7.86% vs +30.95% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), CGHM annualized +4.45% vs +11.35% for SCHD. Past performance does not guarantee future results.
Which is riskier, CGHM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.5% for CGHM. Worst drawdown: CGHM -5.9% vs SCHD -33.4%.
Should I hold both CGHM and SCHD?
CGHM and SCHD have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGHM and SCHD?
CGHM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 662 unique securities.
Which pays a higher dividend, CGHM or SCHD?
CGHM yields 3.54% while SCHD yields 3.31%, so CGHM currently pays the higher dividend yield.
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