FSMB vs. SCMB

Last updated Jun 4, 2026

FSMB (First Trust Short Duration Managed Municipal ETF) and SCMB (Schwab Municipal Bond ETF) are both Municipal Bonds funds. FSMB is actively managed, while SCMB is passively managed. Over the past 3 years, FSMB returned 3.56%/yr vs 3.37%/yr for SCMB. A 0.62 correlation means they provide meaningful diversification when combined. FSMB charges 0.45%/yr vs 0.03%/yr for SCMB.

Performance

FSMB vs. SCMB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Short Duration Managed Municipal ETF (FSMB) 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, FSMB achieves a 1.15% return, which is significantly higher than SCMB's 1.07% return.

FSMB

• 1D: 0.05%
• 1M: 0.44%
• YTD: 1.15%
• 6M: 1.51%
• 1Y: 4.18%
• 3Y*: 3.56%
• 5Y*: 1.51%
• 10Y*: —

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)

FSMB vs. SCMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FSMB First Trust Short Duration Managed Municipal ETF	1.15%	4.22%	2.35%	3.54%	1.27%
SCMB Schwab Municipal Bond ETF	1.07%	3.78%	0.91%	5.86%	3.05%

Correlation

The correlation between FSMB and SCMB is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (All Time) Calculated using the full available price history since Oct 13, 2022	0.62

The correlation between FSMB and SCMB shifts across timeframes, from 0.42 (1 year) to 0.62 (all time), reflecting how their relationship changes across market environments.

Return for Risk

FSMB vs. SCMB — Risk / Return Rank

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

FSMB

FSMB Risk / Return Rank: 80
FSMB Sharpe Ratio Rank: 88
FSMB Sortino Ratio Rank: 92
FSMB Omega Ratio Rank: 92
FSMB Calmar Ratio Rank: 66
FSMB Martin Ratio Rank: 62

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.

FSMB vs. SCMB - Risk-Adjusted Trends Comparison

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

	FSMB	SCMB	Difference
Sharpe ratio: Return per unit of total volatility	2.99	2.34	+0.65
Sortino ratio: Return per unit of downside risk	4.48	3.45	+1.03
Omega ratio: Gain probability vs. loss probability	1.63	1.50	+0.13
Calmar ratio: Return relative to maximum drawdown	3.26	2.36	+0.90
Martin ratio: Return relative to average drawdown	11.17	7.89	+3.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FSMB vs. SCMB - Sharpe Ratio Comparison

The current FSMB Sharpe Ratio is 2.99, which is comparable to the SCMB Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of FSMB 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

	FSMB	SCMB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.99	2.34	+0.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	0.97	-0.22

Drawdowns

FSMB vs. SCMB - Drawdown Comparison

The maximum FSMB drawdown since its inception was -6.32%, roughly equal to the maximum SCMB drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for FSMB and SCMB.

Drawdown Indicators

	FSMB	SCMB	Difference
Max Drawdown Largest peak-to-trough decline	-6.32%	-6.13%	-0.19%
Max Drawdown (1Y) Largest decline over 1 year	-1.29%	-2.92%	+1.63%
Max Drawdown (3Y) Largest decline over 3 years	-1.76%	-5.57%	+3.81%
Max Drawdown (5Y) Largest decline over 5 years	-5.97%	—	—
Current Drawdown Current decline from peak	-0.25%	-0.87%	+0.62%
Average Drawdown Average peak-to-trough decline	-1.16%	-1.32%	+0.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.37%	0.87%	-0.50%

Volatility

FSMB vs. SCMB - Volatility Comparison

The current volatility for First Trust Short Duration Managed Municipal ETF (FSMB) is 0.42%, while Schwab Municipal Bond ETF (SCMB) has a volatility of 1.04%. This indicates that FSMB 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

	FSMB	SCMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.42%	1.04%	-0.62%
Volatility (6M) Calculated over the trailing 6-month period	1.02%	2.17%	-1.15%
Volatility (1Y) Calculated over the trailing 1-year period	1.40%	2.94%	-1.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.96%	4.16%	-2.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.92%	4.16%	-1.24%

FSMB vs. SCMB - Expense Ratio Comparison

FSMB has a 0.45% expense ratio, which is higher than SCMB's 0.03% expense ratio.

Dividends

FSMB vs. SCMB - Dividend Comparison

FSMB's dividend yield for the trailing twelve months is around 3.14%, less than SCMB's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
FSMB First Trust Short Duration Managed Municipal ETF	3.14%	3.09%	2.88%	2.40%	1.47%	1.20%	1.79%	2.27%	0.19%
SCMB Schwab Municipal Bond ETF	3.54%	3.36%	3.34%	3.10%	0.59%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FSMB and SCMB in my portfolio?

FSMB and SCMB have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSMB or SCMB?

SCMB has higher volatility (1.04%) compared to FSMB (0.42%). In terms of maximum drawdown, FSMB dropped -6.32% vs SCMB's -6.13%.

Which ETF is better, FSMB or SCMB?

On 3-year performance, FSMB leads with 3.56% vs 3.37% for SCMB. On fees, SCMB is cheaper at 0.03% per year. On volatility, FSMB has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSMB or SCMB?

Over the 3-year period, FSMB has performed better with a 3.56% return vs 3.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSMB or SCMB?

SCMB is cheaper with a 0.03% expense ratio, compared with 0.45% for FSMB.

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

SCMB has the higher dividend yield at 3.54%, compared with 3.14% for FSMB.

What is the main difference between FSMB and SCMB?

They also come from different issuers: First Trust and Charles Schwab. Their fees differ too: 0.45% for FSMB and 0.03% for SCMB.

Which has better risk-adjusted returns?

FSMB currently has the higher Sharpe Ratio (2.99 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.