SCHD vs SHM
SCHD vs SHM
Schwab US Dividend Equity ETF vs State Street SPDR Nuveen ICE Short Term Municipal Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SHM offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | SCHD | SHM | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.20% | |
| AUM | $103.7B | $3.5B | |
| Dividend Yield | 3.31% | 2.66% | |
| Holdings | 104 | 988 | |
| YTD Return | +23.02% | +0.31% | |
| 1Y Return | +30.75% | +1.34% | |
| 3Y Return (annualized) | +14.89% | +2.65% | |
| 5Y Return (annualized) | +9.38% | +0.72% | |
| Volatility (annualized) | 13.6% | 2.6% | |
| Max Drawdown | -33.4% | -11.6% | |
| Fund Family | Charles Schwab Asset Management | State Street Investment Management | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Oct 10, 2007 |
SCHD vs SHM Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is a ETF from State Street Investment Management. Over the past year SCHD returned +30.75% while SHM returned +1.34%. Year to date, SCHD is up 23.02% versus a gain of 0.31% for SHM.
Over three years, SCHD compounded at +14.89% per year against +2.65% for SHM; over five years the annualized figures are +9.38% and +0.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.33% annualized vs +0.74%. 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 2.6% for SHM. 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 -33.4% for SCHD and -11.6% for SHM. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while SHM charges 0.20%. On a $10,000 position that is $6 vs $20 annually, a gap of $14 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 2.66% for SHM.
Holdings Overlap
SCHD and SHM share 0 holdings out of 771 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, SCHD or SHM?
SCHD has an expense ratio of 0.06% while SHM charges 0.20%. SCHD is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, SCHD or SHM?
Over the past year SCHD returned +30.75% vs +1.34% for SHM, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.33% vs +0.74% for SHM. Past performance does not guarantee future results.
Which is riskier, SCHD or SHM?
SCHD has been the more volatile fund at 13.6% annualized versus 2.6% for SHM. Worst drawdown: SCHD -33.4% vs SHM -11.6%.
Should I hold both SCHD and SHM?
SCHD and SHM have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and SHM?
SCHD and SHM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 771 unique securities.
Which pays a higher dividend, SCHD or SHM?
SCHD yields 3.31% while SHM yields 2.66%, so SCHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.