FLMB vs. SCMB

Last updated Aug 4, 2026

FLMB (Franklin Liberty Federal Tax-Free Bond ETF) and SCMB (Schwab Municipal Bond ETF) are both Municipal Bonds funds. FLMB is actively managed, while SCMB is passively managed. Over the past 3 years, FLMB returned 3.83%/yr vs 2.98%/yr for SCMB. Their 0.78 correlation means they have sometimes moved together and sometimes differently. FLMB charges 0.30%/yr vs 0.03%/yr for SCMB.

Performance

FLMB vs. SCMB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty Federal Tax-Free Bond ETF (FLMB) and Schwab Municipal Bond ETF (SCMB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLMB achieves a 0.50% return, which is significantly higher than SCMB's 0.07% return.

FLMB

• 1D: 0.11%
• 1M: -2.06%
• 6M: -0.05%
• YTD: 0.50%
• 1Y: 6.42%
• 3Y*: 3.83%
• 5Y*: 0.10%
• 10Y*: —
• ALL TIME*: 2.13%

SCMB

• 1D: 0.01%
• 1M: -1.78%
• 6M: -0.67%
• YTD: 0.07%
• 1Y: 4.38%
• 3Y*: 2.98%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.53%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FLMB Franklin Liberty Federal Tax-Free Bond ETF	$236.78K	$198.32K	$268.48K
SCMB Schwab Municipal Bond ETF	$37.80M	$30.75M	$30.25M

FLMB vs. SCMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FLMB Franklin Liberty Federal Tax-Free Bond ETF	0.50%	3.93%	2.47%	7.72%	3.21%
SCMB Schwab Municipal Bond ETF	0.07%	3.78%	0.91%	5.86%	2.88%

Correlation

The correlation between FLMB and SCMB is 0.72, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.72
Correlation (3Y) Balances recent behavior with more history.	0.74
Correlation (All Time) Calculated using the full available price history since Oct 12, 2022	0.78

The correlation between FLMB and SCMB has been stable across timeframes, ranging from 0.72 to 0.78 - a consistent structural relationship.

Return for Risk

FLMB vs. SCMB — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FLMB

FLMB Risk / Return Rank: 68
FLMB Sharpe Ratio Rank: 75
FLMB Sortino Ratio Rank: 77
FLMB Omega Ratio Rank: 83
FLMB Calmar Ratio Rank: 52
FLMB Martin Ratio Rank: 54

SCMB

SCMB Risk / Return Rank: 55
SCMB Sharpe Ratio Rank: 63
SCMB Sortino Ratio Rank: 60
SCMB Omega Ratio Rank: 70
SCMB Calmar Ratio Rank: 41
SCMB Martin Ratio Rank: 42

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FLMB vs. SCMB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty Federal Tax-Free Bond ETF (FLMB) and Schwab Municipal Bond ETF (SCMB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FLMB	SCMB	Difference
Sharpe ratio: Return per unit of total volatility	1.85	1.51	+0.34
Sortino ratio: Return per unit of downside risk	2.65	2.09	+0.56
Omega ratio: Gain probability vs. loss probability	1.38	1.30	+0.08
Calmar ratio: Return relative to maximum drawdown	1.98	1.51	+0.47
Martin ratio: Return relative to average drawdown	6.77	4.64	+2.13

FLMB vs. SCMB - Sharpe Ratio Comparison

The current FLMB Sharpe Ratio is 1.85, which is comparable to the SCMB Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of FLMB and SCMB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FLMB vs. SCMB - Drawdown Comparison

The maximum FLMB drawdown since its inception was -17.90%, which is greater than SCMB's maximum drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for FLMB and SCMB.

Drawdown Indicators

	FLMB	SCMB	Difference
Max Drawdown Largest peak-to-trough decline	-17.90%	-6.13%	-11.77%
Max Drawdown (1Y) Largest decline over 1 year	-3.25%	-2.92%	-0.33%
Max Drawdown (3Y) Largest decline over 3 years	-6.44%	-4.75%	-1.69%
Max Drawdown (5Y) Largest decline over 5 years	-17.82%	—	—
Current Drawdown Current decline from peak	-2.14%	-1.85%	-0.29%
Average Drawdown Average peak-to-trough decline	-4.10%	-1.30%	-2.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	0.95%	0.00%

Volatility

FLMB vs. SCMB - Volatility Comparison

Franklin Liberty Federal Tax-Free Bond ETF (FLMB) has a higher volatility of 1.16% compared to Schwab Municipal Bond ETF (SCMB) at 1.00%. This indicates that FLMB's price experiences larger fluctuations and is considered to be riskier than SCMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLMB	SCMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.16%	1.00%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	2.70%	2.35%	+0.35%
Volatility (1Y) Calculated over the trailing 1-year period	3.49%	2.92%	+0.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.13%	4.12%	+1.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.54%	4.12%	+1.42%

FLMB vs. SCMB - Expense Ratio Comparison

FLMB has a 0.30% expense ratio, which is higher than SCMB's 0.03% expense ratio.

Dividends

FLMB vs. SCMB - Dividend Comparison

FLMB's dividend yield for the trailing twelve months is around 4.13%, more than SCMB's 3.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLMB Franklin Liberty Federal Tax-Free Bond ETF	4.13%	3.86%	3.79%	3.49%	2.80%	1.66%	2.07%	2.40%	2.68%	0.54%
SCMB Schwab Municipal Bond ETF	3.59%	3.36%	3.34%	3.10%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLMB and SCMB in my portfolio?

FLMB and SCMB have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLMB or SCMB?

FLMB has higher volatility (1.16%) compared to SCMB (1.00%). In terms of maximum drawdown, FLMB dropped -17.90% vs SCMB's -6.13%.

Which ETF is better, FLMB or SCMB?

On 3-year performance, FLMB leads with 3.83% vs 2.98% for SCMB. On fees, SCMB is cheaper at 0.03% per year. On volatility, SCMB has been the lower-risk option at 1.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLMB or SCMB?

Over the 3-year period, FLMB has performed better with a 3.83% return vs 2.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLMB or SCMB?

SCMB is cheaper with a 0.03% expense ratio, compared with 0.30% for FLMB.

Which ETF pays a higher dividend yield, FLMB or SCMB?

FLMB has the higher dividend yield at 4.13%, compared with 3.59% for SCMB.

What is the main difference between FLMB and SCMB?

They also come from different issuers: Franklin Templeton and Charles Schwab. Their fees differ too: 0.30% for FLMB and 0.03% for SCMB.

Which has better risk-adjusted returns?

FLMB currently has the higher Sharpe Ratio (1.85 vs 1.51), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.