PMBS vs SCHD
PMBS vs SCHD
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PMBS offers more diversification with 143 holdings.
Side-by-Side Comparison
| Metric | PMBS | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.06% | |
| AUM | $1.4B | $103.7B | |
| Dividend Yield | 4.97% | 3.31% | |
| Holdings | 1,126 | 104 | |
| YTD Return | +0.38% | +24.08% | |
| 1Y Return | +3.91% | +31.88% | |
| 3Y Return (annualized) | - | +14.92% | |
| 5Y Return (annualized) | - | +9.85% | |
| Volatility (annualized) | 4.4% | 13.6% | |
| Max Drawdown | -3.1% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Sep 20, 2024 | Oct 20, 2011 |
PMBS vs SCHD Performance
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PMBS returned +3.91% while SCHD returned +31.88%. Year to date, PMBS is up 0.38% 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 4.4% for PMBS. 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 -3.1% for PMBS 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMBS 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, PMBS currently yields 4.97% against 3.31% for SCHD.
Holdings Overlap
PMBS and SCHD share 0 holdings out of 243 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, PMBS or SCHD?
PMBS 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, PMBS or SCHD?
Over the past year PMBS returned +3.91% vs +31.88% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), PMBS annualized +5.23% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PMBS or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.4% for PMBS. Worst drawdown: PMBS -3.1% vs SCHD -33.4%.
Should I hold both PMBS and SCHD?
PMBS and SCHD have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMBS and SCHD?
PMBS and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 243 unique securities.
Which pays a higher dividend, PMBS or SCHD?
PMBS yields 4.97% while SCHD yields 3.31%, so PMBS currently pays the higher dividend yield.
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