MUSE vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MUSE offers more diversification with 144 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: MUSE

Side-by-Side Comparison

MetricMUSESCHDWinner
Expense Ratio0.56%0.06%
AUM$40M$103.7B
Dividend Yield7.67%3.31%
Holdings260104
YTD Return+2.23%+24.08%
1Y Return+5.06%+31.88%
3Y Return (annualized)-+14.92%
5Y Return (annualized)-+9.85%
Volatility (annualized)2.9%13.6%
Max Drawdown-3.6%-33.4%
Fund FamilyTCW ETFsCharles Schwab Asset Management
CategoryFixed IncomeEquity
InceptionNov 15, 2024Oct 20, 2011

MUSE vs SCHD Performance

TCW Multisector Credit Income ETF (MUSE) is a ETF from TCW ETFs and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MUSE returned +5.06% while SCHD returned +31.88%. Year to date, MUSE is up 2.23% versus a gain of 24.08% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.9% for MUSE. 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 -3.6% for MUSE 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUSE charges 0.56% per year while SCHD charges 0.06%. On a $10,000 position that is $56 vs $6 annually, a gap of $50 per year that compounds over a long holding period. On income, MUSE currently yields 7.67% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

MUSE and SCHD share 0 holdings out of 244 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, MUSE or SCHD?

MUSE has an expense ratio of 0.56% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $50 per year of difference.

Which performed better, MUSE or SCHD?

Over the past year MUSE returned +5.06% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), MUSE annualized +6.35% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, MUSE or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 2.9% for MUSE. Worst drawdown: MUSE -3.6% vs SCHD -33.4%.

Should I hold both MUSE and SCHD?

MUSE and SCHD have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUSE and SCHD?

MUSE and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 244 unique securities.

Which pays a higher dividend, MUSE or SCHD?

MUSE yields 7.67% while SCHD yields 3.31%, so MUSE currently pays the higher dividend yield.

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