MHF vs SCHD
MHF vs SCHD
Western Asset Municipal High Income Fund Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MHF offers more diversification with 126 holdings.
Side-by-Side Comparison
| Metric | MHF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.06% | |
| AUM | $153M | $103.7B | |
| Dividend Yield | 5.89% | 3.31% | |
| Holdings | 248 | 104 | |
| YTD Return | +3.98% | +23.31% | |
| 1Y Return | +7.00% | +30.42% | |
| 3Y Return (annualized) | +8.98% | +14.66% | |
| 5Y Return (annualized) | +1.57% | +9.59% | |
| Volatility (annualized) | 10.3% | 13.6% | |
| Max Drawdown | -44.6% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 28, 1988 | Oct 20, 2011 |
MHF vs SCHD Performance
Western Asset Municipal High Income Fund Inc. (MHF) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MHF returned +7.00% while SCHD returned +30.42%. Year to date, MHF is up 3.98% versus a gain of 23.31% for SCHD.
Over three years, MHF compounded at +8.98% per year against +14.66% for SCHD; over five years the annualized figures are +1.57% and +9.59% respectively. Across the full 15-year window we track, SCHD has the edge at +11.34% annualized vs +0.13%. 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 10.3% for MHF. 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 -44.6% for MHF 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MHF charges 0.71% per year while SCHD charges 0.06%. On a $10,000 position that is $71 vs $6 annually, a gap of $65 per year that compounds over a long holding period. On income, MHF currently yields 5.89% against 3.31% for SCHD.
Holdings Overlap
MHF and SCHD share 0 holdings out of 226 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, MHF or SCHD?
MHF has an expense ratio of 0.71% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, MHF or SCHD?
Over the past year MHF returned +7.00% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MHF annualized +0.13% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, MHF or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 10.3% for MHF. Worst drawdown: MHF -44.6% vs SCHD -33.4%.
Should I hold both MHF and SCHD?
MHF and SCHD have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MHF and SCHD?
MHF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 226 unique securities.
Which pays a higher dividend, MHF or SCHD?
MHF yields 5.89% while SCHD yields 3.31%, so MHF currently pays the higher dividend yield.
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