SCHA vs. SCMB

Last updated Jul 21, 2026

SCHA (Schwab U.S. Small-Cap ETF) and SCMB (Schwab Municipal Bond ETF) are both exchange-traded funds - SCHA is a Small Cap Blend Equities fund tracking the Dow Jones U.S. Small-Cap Total Stock Market Index, while SCMB is a Municipal Bonds fund tracking the ICE AMT-Free Core U.S. National Municipal Index. Both are passively managed. Over the past 3 years, SCHA returned 15.94%/yr vs 2.84%/yr for SCMB. At a 0.17 correlation, their price movements are largely independent. SCHA charges 0.04%/yr vs 0.03%/yr for SCMB.

Performance

SCHA vs. SCMB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Small-Cap ETF (SCHA) 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, SCHA achieves a 19.43% return, which is significantly higher than SCMB's 0.93% return.

SCHA

• 1D: -0.53%
• 1M: -3.47%
• 6M: 11.37%
• YTD: 19.43%
• 1Y: 31.42%
• 3Y*: 15.94%
• 5Y*: 7.49%
• 10Y*: 10.66%
• ALL TIME*: 12.45%

SCMB

• 1D: -0.12%
• 1M: -0.52%
• 6M: 0.00%
• YTD: 0.93%
• 1Y: 6.66%
• 3Y*: 2.84%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.81%

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

SCHA vs. SCMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SCHA Schwab U.S. Small-Cap ETF	19.43%	11.60%	11.16%	18.46%	5.72%
SCMB Schwab Municipal Bond ETF	0.93%	3.78%	0.91%	5.86%	2.88%

Correlation

The correlation between SCHA and SCMB is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (All Time) Calculated using the full available price history since Oct 12, 2022	0.17

Return for Risk

SCHA vs. SCMB — Risk / Return Rank

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

SCHA

SCHA Risk / Return Rank: 73
SCHA Sharpe Ratio Rank: 69
SCHA Sortino Ratio Rank: 71
SCHA Omega Ratio Rank: 63
SCHA Calmar Ratio Rank: 83
SCHA Martin Ratio Rank: 81

SCMB

SCMB Risk / Return Rank: 79
SCMB Sharpe Ratio Rank: 90
SCMB Sortino Ratio Rank: 91
SCMB Omega Ratio Rank: 93
SCMB Calmar Ratio Rank: 62
SCMB Martin Ratio Rank: 59

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.

SCHA vs. SCMB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. Small-Cap ETF (SCHA) 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.

	SCHA	SCMB	Difference
Sharpe ratio: Return per unit of total volatility	1.67	2.33	-0.67
Sortino ratio: Return per unit of downside risk	2.42	3.41	-0.99
Omega ratio: Gain probability vs. loss probability	1.28	1.50	-0.21
Calmar ratio: Return relative to maximum drawdown	3.32	2.29	+1.03
Martin ratio: Return relative to average drawdown	11.38	7.61	+3.77

SCHA vs. SCMB - Sharpe Ratio Comparison

The current SCHA Sharpe Ratio is 1.67, which is comparable to the SCMB Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of SCHA 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

SCHA vs. SCMB - Drawdown Comparison

The maximum SCHA drawdown since its inception was -42.41%, which is greater than SCMB's maximum drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for SCHA and SCMB.

Drawdown Indicators

	SCHA	SCMB	Difference
Max Drawdown Largest peak-to-trough decline	-42.41%	-6.13%	-36.28%
Max Drawdown (1Y) Largest decline over 1 year	-9.50%	-2.92%	-6.58%
Max Drawdown (3Y) Largest decline over 3 years	-27.29%	-5.57%	-21.72%
Max Drawdown (5Y) Largest decline over 5 years	-30.79%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.41%	—	—
Current Drawdown Current decline from peak	-6.26%	-1.01%	-5.25%
Average Drawdown Average peak-to-trough decline	-7.54%	-1.30%	-6.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.77%	0.88%	+1.89%

Volatility

SCHA vs. SCMB - Volatility Comparison

Schwab U.S. Small-Cap ETF (SCHA) has a higher volatility of 5.84% compared to Schwab Municipal Bond ETF (SCMB) at 0.62%. This indicates that SCHA'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

	SCHA	SCMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.84%	0.62%	+5.22%
Volatility (6M) Calculated over the trailing 6-month period	14.41%	2.19%	+12.22%
Volatility (1Y) Calculated over the trailing 1-year period	18.98%	2.87%	+16.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.02%	4.11%	+17.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.74%	4.11%	+18.63%

SCHA vs. SCMB - Expense Ratio Comparison

SCHA has a 0.04% expense ratio, which is higher than SCMB's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SCHA vs. SCMB - Dividend Comparison

SCHA's dividend yield for the trailing twelve months is around 1.06%, less than SCMB's 3.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHA Schwab U.S. Small-Cap ETF	1.06%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%
SCMB Schwab Municipal Bond ETF	3.55%	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 SCHA and SCMB in my portfolio?

SCHA and SCMB have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHA or SCMB?

SCHA has higher volatility (5.84%) compared to SCMB (0.62%). In terms of maximum drawdown, SCHA dropped -42.41% vs SCMB's -6.13%.

Which ETF is better, SCHA or SCMB?

On 3-year performance, SCHA leads with 15.94% vs 2.84% for SCMB. On fees, SCMB is cheaper at 0.03% per year. On volatility, SCMB has been the lower-risk option at 0.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHA or SCMB?

Over the 3-year period, SCHA has performed better with a 15.94% return vs 2.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHA or SCMB?

SCMB is cheaper with a 0.03% expense ratio, compared with 0.04% for SCHA.

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

SCMB has the higher dividend yield at 3.55%, compared with 1.06% for SCHA.

What is the main difference between SCHA and SCMB?

SCHA is categorized as Small Cap Blend Equities, while SCMB is Municipal Bonds. SCHA tracks Dow Jones U.S. Small-Cap Total Stock Market Index, while SCMB tracks ICE AMT-Free Core U.S. National Municipal Index. Their fees differ too: 0.04% for SCHA and 0.03% for SCMB.

Which has better risk-adjusted returns?

SCMB currently has the higher Sharpe Ratio (2.33 vs 1.67), 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.