PMIO vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricPMIOSCHDWinner
Expense Ratio0.25%0.06%
AUM$50M$103.7B
Dividend Yield4.56%3.31%
Holdings78104
YTD Return+1.05%+23.31%
1Y Return+4.93%+30.42%
3Y Return (annualized)-+14.66%
5Y Return (annualized)-+9.59%
Volatility (annualized)3.5%13.6%
Max Drawdown-3.4%-33.4%
Fund FamilyPGIM InvestmentsCharles Schwab Asset Management
CategoryTax PreferredEquity
InceptionJun 14, 2024Oct 20, 2011

PMIO vs SCHD Performance

PGIM Municipal Income Opportunities ETF (PMIO) is a ETF from PGIM Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PMIO returned +4.93% while SCHD returned +30.42%. Year to date, PMIO is up 1.05% versus a gain of 23.31% for SCHD.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 3.5% for PMIO. 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 -3.4% for PMIO 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PMIO charges 0.25% per year while SCHD charges 0.06%. On a $10,000 position that is $25 vs $6 annually, a gap of $19 per year that compounds over a long holding period. On income, PMIO currently yields 4.56% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

PMIO and SCHD share 0 holdings out of 120 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, PMIO or SCHD?

PMIO has an expense ratio of 0.25% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $19 per year of difference.

Which performed better, PMIO or SCHD?

Over the past year PMIO returned +4.93% vs +30.42% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), PMIO annualized +4.21% vs +11.34% for SCHD. Past performance does not guarantee future results.

Which is riskier, PMIO or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 3.5% for PMIO. Worst drawdown: PMIO -3.4% vs SCHD -33.4%.

Should I hold both PMIO and SCHD?

PMIO and SCHD have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PMIO and SCHD?

PMIO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.

Which pays a higher dividend, PMIO or SCHD?

PMIO yields 4.56% while SCHD yields 3.31%, so PMIO currently pays the higher dividend yield.

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