FMB vs. SCMB

Last updated Jun 4, 2026

FMB (First Trust Managed Municipal ETF) and SCMB (Schwab Municipal Bond ETF) are both Municipal Bonds funds. FMB is actively managed, while SCMB is passively managed. Over the past 3 years, FMB returned 3.96%/yr vs 3.37%/yr for SCMB. Their correlation of 0.86 suggests significant overlap in exposure. FMB charges 0.50%/yr vs 0.03%/yr for SCMB.

Performance

FMB vs. SCMB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Managed Municipal ETF (FMB) 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, FMB achieves a 1.78% return, which is significantly higher than SCMB's 1.07% return.

FMB

• 1D: -0.04%
• 1M: 0.70%
• YTD: 1.78%
• 6M: 2.21%
• 1Y: 7.15%
• 3Y*: 3.96%
• 5Y*: 0.72%
• 10Y*: 2.31%

SCMB

• 1D: -0.12%
• 1M: 0.60%
• YTD: 1.07%
• 6M: 1.55%
• 1Y: 6.86%
• 3Y*: 3.37%
• 5Y*: —
• 10Y*: —

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

FMB vs. SCMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FMB First Trust Managed Municipal ETF	1.78%	3.73%	1.94%	6.31%	2.19%
SCMB Schwab Municipal Bond ETF	1.07%	3.78%	0.91%	5.86%	3.05%

Correlation

The correlation between FMB and SCMB is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (All Time) Calculated using the full available price history since Oct 13, 2022	0.86

The correlation between FMB and SCMB has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

Return for Risk

FMB vs. SCMB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FMB

FMB Risk / Return Rank: 73
FMB Sharpe Ratio Rank: 82
FMB Sortino Ratio Rank: 86
FMB Omega Ratio Rank: 90
FMB Calmar Ratio Rank: 53
FMB Martin Ratio Rank: 55

SCMB

SCMB Risk / Return Rank: 64
SCMB Sharpe Ratio Rank: 70
SCMB Sortino Ratio Rank: 75
SCMB Omega Ratio Rank: 81
SCMB Calmar Ratio Rank: 47
SCMB Martin Ratio Rank: 47

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FMB vs. SCMB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Managed Municipal ETF (FMB) 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.

	FMB	SCMB	Difference
Sharpe ratio: Return per unit of total volatility	2.70	2.34	+0.35
Sortino ratio: Return per unit of downside risk	3.92	3.45	+0.47
Omega ratio: Gain probability vs. loss probability	1.60	1.50	+0.10
Calmar ratio: Return relative to maximum drawdown	2.63	2.36	+0.27
Martin ratio: Return relative to average drawdown	9.44	7.89	+1.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FMB vs. SCMB - Sharpe Ratio Comparison

The current FMB Sharpe Ratio is 2.70, which is comparable to the SCMB Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of FMB 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.

Sharpe Ratios by Period

	FMB	SCMB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.70	2.34	+0.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.97	-0.31

Drawdowns

FMB vs. SCMB - Drawdown Comparison

The maximum FMB drawdown since its inception was -14.16%, which is greater than SCMB's maximum drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for FMB and SCMB.

Drawdown Indicators

	FMB	SCMB	Difference
Max Drawdown Largest peak-to-trough decline	-14.16%	-6.13%	-8.03%
Max Drawdown (1Y) Largest decline over 1 year	-2.73%	-2.92%	+0.19%
Max Drawdown (3Y) Largest decline over 3 years	-4.76%	-5.57%	+0.81%
Max Drawdown (5Y) Largest decline over 5 years	-14.16%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-14.16%	—	—
Current Drawdown Current decline from peak	-0.50%	-0.87%	+0.37%
Average Drawdown Average peak-to-trough decline	-2.61%	-1.32%	-1.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	0.87%	-0.11%

Volatility

FMB vs. SCMB - Volatility Comparison

The current volatility for First Trust Managed Municipal ETF (FMB) is 0.88%, while Schwab Municipal Bond ETF (SCMB) has a volatility of 1.04%. This indicates that FMB experiences smaller price fluctuations and is considered to be less risky than SCMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FMB	SCMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.88%	1.04%	-0.16%
Volatility (6M) Calculated over the trailing 6-month period	1.91%	2.17%	-0.26%
Volatility (1Y) Calculated over the trailing 1-year period	2.67%	2.94%	-0.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.71%	4.16%	-0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.55%	4.16%	+0.39%

FMB vs. SCMB - Expense Ratio Comparison

FMB has a 0.50% expense ratio, which is higher than SCMB's 0.03% expense ratio.

Dividends

FMB vs. SCMB - Dividend Comparison

FMB's dividend yield for the trailing twelve months is around 3.50%, less than SCMB's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMB First Trust Managed Municipal ETF	3.50%	3.37%	3.22%	2.98%	2.47%	1.96%	2.19%	2.47%	2.58%	2.49%	2.93%	3.07%
SCMB Schwab Municipal Bond ETF	3.54%	3.36%	3.34%	3.10%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FMB and SCMB in my portfolio?

FMB and SCMB have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FMB or SCMB?

SCMB has higher volatility (1.04%) compared to FMB (0.88%). In terms of maximum drawdown, FMB dropped -14.16% vs SCMB's -6.13%.

Which ETF is better, FMB or SCMB?

On 3-year performance, FMB leads with 3.96% vs 3.37% for SCMB. On fees, SCMB is cheaper at 0.03% per year. On volatility, FMB has been the lower-risk option at 0.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FMB or SCMB?

Over the 3-year period, FMB has performed better with a 3.96% return vs 3.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FMB or SCMB?

SCMB is cheaper with a 0.03% expense ratio, compared with 0.50% for FMB.

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

SCMB has the higher dividend yield at 3.54%, compared with 3.50% for FMB.

What is the main difference between FMB and SCMB?

They also come from different issuers: First Trust and Charles Schwab. Their fees differ too: 0.50% for FMB and 0.03% for SCMB.

Which has better risk-adjusted returns?

FMB currently has the higher Sharpe Ratio (2.70 vs 2.34), 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.