MUSI vs SCHD
MUSI vs SCHD
American Century Multisector Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. MUSI offers more diversification with 150 holdings.
Side-by-Side Comparison
| Metric | MUSI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.06% | |
| AUM | $244M | $103.7B | |
| Dividend Yield | 5.51% | 3.31% | |
| Holdings | 374 | 104 | |
| YTD Return | +0.84% | +23.31% | |
| 1Y Return | +3.70% | +30.42% | |
| 3Y Return (annualized) | +6.24% | +14.66% | |
| 5Y Return (annualized) | +2.04% | +9.59% | |
| Volatility (annualized) | 5.4% | 13.6% | |
| Max Drawdown | -13.9% | -33.4% | |
| Fund Family | American Century Investments | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Jun 29, 2021 | Oct 20, 2011 |
MUSI vs SCHD Performance
American Century Multisector Income ETF (MUSI) is a ETF from American Century Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year MUSI returned +3.70% while SCHD returned +30.42%. Year to date, MUSI is up 0.84% versus a gain of 23.31% for SCHD.
Over three years, MUSI compounded at +6.24% per year against +14.66% for SCHD; over five years the annualized figures are +2.04% and +9.59% respectively. Across the full 5-year window we track, SCHD has the edge at +11.34% annualized vs +2.03%. 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 5.4% for MUSI. 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 -13.9% for MUSI 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUSI charges 0.38% per year while SCHD charges 0.06%. On a $10,000 position that is $38 vs $6 annually, a gap of $32 per year that compounds over a long holding period. On income, MUSI currently yields 5.51% against 3.31% for SCHD.
Holdings Overlap
MUSI and SCHD share 0 holdings out of 250 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, MUSI or SCHD?
MUSI has an expense ratio of 0.38% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, MUSI or SCHD?
Over the past year MUSI returned +3.70% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), MUSI annualized +2.03% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, MUSI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 5.4% for MUSI. Worst drawdown: MUSI -13.9% vs SCHD -33.4%.
Should I hold both MUSI and SCHD?
MUSI and SCHD have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUSI and SCHD?
MUSI and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 250 unique securities.
Which pays a higher dividend, MUSI or SCHD?
MUSI yields 5.51% while SCHD yields 3.31%, so MUSI currently pays the higher dividend yield.
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