PMO vs SCHD
PMO vs SCHD
Putnam Municipal Opportunities Trust vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PMO offers more diversification with 110 holdings.
Side-by-Side Comparison
| Metric | PMO | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.06% | |
| AUM | $4,829 | $103.7B | |
| Dividend Yield | 4.04% | 3.31% | |
| Holdings | 288 | 104 | |
| YTD Return | +0.30% | +24.26% | |
| 1Y Return | +10.75% | +31.38% | |
| 3Y Return (annualized) | +5.92% | +15.08% | |
| 5Y Return (annualized) | -1.95% | +9.72% | |
| Volatility (annualized) | 11.5% | 13.6% | |
| Max Drawdown | -50.4% | -33.4% | |
| Fund Family | Putnam Investments | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | May 28, 1993 | Oct 20, 2011 |
PMO vs SCHD Performance
Putnam Municipal Opportunities Trust (PMO) is a ETF from Putnam Investments and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PMO returned +10.75% while SCHD returned +31.38%. Year to date, PMO is up 0.30% versus a gain of 24.26% for SCHD.
Over three years, PMO compounded at +5.92% per year against +15.08% for SCHD; over five years the annualized figures are -1.95% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.05%. 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 11.5% for PMO. 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 -50.4% for PMO 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMO charges 1.02% per year while SCHD charges 0.06%. On a $10,000 position that is $102 vs $6 annually, a gap of $96 per year that compounds over a long holding period. On income, PMO currently yields 4.04% against 3.31% for SCHD.
Holdings Overlap
PMO and SCHD share 0 holdings out of 210 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, PMO or SCHD?
PMO has an expense ratio of 1.02% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $96 per year of difference.
Which performed better, PMO or SCHD?
Over the past year PMO returned +10.75% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), PMO annualized -0.05% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, PMO or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 11.5% for PMO. Worst drawdown: PMO -50.4% vs SCHD -33.4%.
Should I hold both PMO and SCHD?
PMO and SCHD have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMO and SCHD?
PMO and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 210 unique securities.
Which pays a higher dividend, PMO or SCHD?
PMO yields 4.04% while SCHD yields 3.31%, so PMO currently pays the higher dividend yield.
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