MMU vs SCHD
MMU vs SCHD
Western Asset Managed Municipals Fund Inc. vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MMU offers more diversification with 221 holdings.
Side-by-Side Comparison
| Metric | MMU | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.34% | 0.06% | |
| AUM | $587M | $103.7B | |
| Dividend Yield | 5.92% | 3.31% | |
| Holdings | 427 | 104 | |
| YTD Return | +0.10% | +24.08% | |
| 1Y Return | +8.28% | +31.88% | |
| 3Y Return (annualized) | +7.54% | +14.92% | |
| 5Y Return (annualized) | -0.57% | +9.85% | |
| Volatility (annualized) | 11.1% | 13.6% | |
| Max Drawdown | -41.0% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 1992 | Oct 20, 2011 |
MMU vs SCHD Performance
Western Asset Managed Municipals Fund Inc. (MMU) 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 MMU returned +8.28% while SCHD returned +31.88%. Year to date, MMU is up 0.10% versus a gain of 24.08% for SCHD.
Over three years, MMU compounded at +7.54% per year against +14.92% for SCHD; over five years the annualized figures are -0.57% and +9.85% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs +0.30%. 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 11.1% for MMU. 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 -41.0% for MMU 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMU charges 1.34% per year while SCHD charges 0.06%. On a $10,000 position that is $134 vs $6 annually, a gap of $128 per year that compounds over a long holding period. On income, MMU currently yields 5.92% against 3.31% for SCHD.
Holdings Overlap
MMU and SCHD share 0 holdings out of 321 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, MMU or SCHD?
MMU has an expense ratio of 1.34% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $128 per year of difference.
Which performed better, MMU or SCHD?
Over the past year MMU returned +8.28% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), MMU annualized +0.30% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, MMU or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.1% for MMU. Worst drawdown: MMU -41.0% vs SCHD -33.4%.
Should I hold both MMU and SCHD?
MMU and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMU and SCHD?
MMU and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 321 unique securities.
Which pays a higher dividend, MMU or SCHD?
MMU yields 5.92% while SCHD yields 3.31%, so MMU currently pays the higher dividend yield.
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