SCHD vs TMB
SCHD vs TMB
Schwab US Dividend Equity ETF vs Thornburg Multi Sector Bond ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. TMB offers more diversification with 255 holdings.
Side-by-Side Comparison
| Metric | SCHD | TMB | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.55% | |
| AUM | $103.7B | $238M | |
| Dividend Yield | 3.31% | 4.60% | |
| Holdings | 104 | 403 | |
| YTD Return | +23.53% | +0.98% | |
| 1Y Return | +30.95% | +3.08% | |
| 3Y Return (annualized) | +14.72% | - | |
| 5Y Return (annualized) | +9.56% | - | |
| Volatility (annualized) | 13.6% | 2.0% | |
| Max Drawdown | -33.4% | -2.0% | |
| Fund Family | Charles Schwab Asset Management | Thornburg Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Oct 20, 2011 | Feb 5, 2025 |
SCHD vs TMB Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Thornburg Multi Sector Bond ETF (TMB) is a ETF from Thornburg Investment Management. Over the past year SCHD returned +30.95% while TMB returned +3.08%. Year to date, SCHD is up 23.53% versus a gain of 0.98% for TMB.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 2.0% for TMB. 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 -2.0% for TMB. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while TMB charges 0.55%. On a $10,000 position that is $6 vs $55 annually, a gap of $49 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 4.60% for TMB.
Holdings Overlap
SCHD and TMB share 0 holdings out of 355 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 TMB?
SCHD has an expense ratio of 0.06% while TMB charges 0.55%. SCHD is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, SCHD or TMB?
Over the past year SCHD returned +30.95% vs +3.08% for TMB, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), SCHD annualized +11.35% vs +5.07% for TMB. Past performance does not guarantee future results.
Which is riskier, SCHD or TMB?
SCHD has been the more volatile fund at 13.6% annualized versus 2.0% for TMB. Worst drawdown: SCHD -33.4% vs TMB -2.0%.
Should I hold both SCHD and TMB?
SCHD and TMB have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and TMB?
SCHD and TMB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 355 unique securities.
Which pays a higher dividend, SCHD or TMB?
SCHD yields 3.31% while TMB yields 4.60%, so TMB currently pays the higher dividend yield.
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