SCHX vs. SCMB

Last updated Jun 13, 2026

SCHX (Schwab U.S. Large-Cap ETF) and SCMB (Schwab Municipal Bond ETF) are both exchange-traded funds - SCHX is a Large Cap Blend Equities fund tracking the Dow Jones U.S. Large-Cap Total Stock Market Index, while SCMB is a Municipal Bonds fund tracking the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, SCHX returned 20.84%/yr vs 3.26%/yr for SCMB. At a 0.16 correlation, their price movements are largely independent. Both charge a 0.03% expense ratio.

Performance

SCHX vs. SCMB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. Large-Cap ETF (SCHX) 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, SCHX achieves a 8.86% return, which is significantly higher than SCMB's 1.07% return.

SCHX

• 1D: 0.48%
• 1M: 0.14%
• YTD: 8.86%
• 6M: 9.10%
• 1Y: 23.64%
• 3Y*: 20.84%
• 5Y*: 12.76%
• 10Y*: 15.35%

SCMB

• 1D: 0.00%
• 1M: 0.64%
• YTD: 1.07%
• 6M: 1.59%
• 1Y: 6.05%
• 3Y*: 3.26%
• 5Y*: —
• 10Y*: —

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

SCHX vs. SCMB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SCHX Schwab U.S. Large-Cap ETF	8.86%	17.46%	24.88%	26.84%	7.10%
SCMB Schwab Municipal Bond ETF	1.07%	3.78%	0.91%	5.86%	2.88%

Correlation

The correlation between SCHX and SCMB is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (All Time) Calculated using the full available price history since Oct 12, 2022	0.16

SCHX vs. SCMB - Sectors Allocation Comparison

Sectors	SCHX	SCMB
Technology	38.3%	0.9%
Communication Services	10.1%	0.5%
Financial Services	9.9%	8.8%
Consumer Cyclical	9.7%	2.6%
Industrials	8.4%	0.2%
Healthcare	8.4%	0.1%
Consumer Defensive	4.4%	0.1%
Energy	3.2%	0.0%
Utilities	2.5%	0.2%
Real Estate	2.0%	3.4%
Basic Materials	1.8%	0.0%

Return for Risk

SCHX vs. SCMB — Risk / Return Rank

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

SCHX

SCHX Risk / Return Rank: 66
SCHX Sharpe Ratio Rank: 67
SCHX Sortino Ratio Rank: 65
SCHX Omega Ratio Rank: 67
SCHX Calmar Ratio Rank: 61
SCHX Martin Ratio Rank: 72

SCMB

SCMB Risk / Return Rank: 67
SCMB Sharpe Ratio Rank: 76
SCMB Sortino Ratio Rank: 80
SCMB Omega Ratio Rank: 84
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.

SCHX vs. SCMB - Risk-Adjusted Trends Comparison

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

	SCHX	SCMB	Difference
Sharpe ratio: Return per unit of total volatility	1.91	2.11	-0.20
Sortino ratio: Return per unit of downside risk	2.58	3.08	-0.49
Omega ratio: Gain probability vs. loss probability	1.34	1.44	-0.10
Calmar ratio: Return relative to maximum drawdown	2.63	2.08	+0.55
Martin ratio: Return relative to average drawdown	11.65	6.87	+4.78

SCHX vs. SCMB - Sharpe Ratio Comparison

The current SCHX Sharpe Ratio is 1.91, which is comparable to the SCMB Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of SCHX 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

SCHX vs. SCMB - Drawdown Comparison

The maximum SCHX drawdown since its inception was -34.33%, which is greater than SCMB's maximum drawdown of -6.13%. Use the drawdown chart below to compare losses from any high point for SCHX and SCMB.

Drawdown Indicators

	SCHX	SCMB	Difference
Max Drawdown Largest peak-to-trough decline	-34.33%	-6.13%	-28.20%
Max Drawdown (1Y) Largest decline over 1 year	-9.02%	-2.92%	-6.10%
Max Drawdown (3Y) Largest decline over 3 years	-19.04%	-5.57%	-13.47%
Max Drawdown (5Y) Largest decline over 5 years	-25.41%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-34.33%	—	—
Current Drawdown Current decline from peak	-2.37%	-0.87%	-1.50%
Average Drawdown Average peak-to-trough decline	-3.96%	-1.32%	-2.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.04%	0.88%	+1.16%

Volatility

SCHX vs. SCMB - Volatility Comparison

Schwab U.S. Large-Cap ETF (SCHX) has a higher volatility of 4.47% compared to Schwab Municipal Bond ETF (SCMB) at 0.96%. This indicates that SCHX'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

	SCHX	SCMB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.47%	0.96%	+3.51%
Volatility (6M) Calculated over the trailing 6-month period	9.71%	2.16%	+7.55%
Volatility (1Y) Calculated over the trailing 1-year period	12.47%	2.89%	+9.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.19%	4.15%	+13.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.17%	4.15%	+14.02%

SCHX vs. SCMB - Expense Ratio Comparison

Both SCHX and SCMB have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SCHX vs. SCMB - Dividend Comparison

SCHX's dividend yield for the trailing twelve months is around 1.02%, less than SCMB's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHX Schwab U.S. Large-Cap ETF	1.02%	1.09%	1.22%	1.39%	1.64%	1.22%	1.64%	1.82%	2.02%	1.70%	1.92%	2.04%
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 SCHX and SCMB in my portfolio?

SCHX and SCMB have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCHX or SCMB?

SCHX has higher volatility (4.47%) compared to SCMB (0.96%). In terms of maximum drawdown, SCHX dropped -34.33% vs SCMB's -6.13%.

Which ETF is better, SCHX or SCMB?

On 3-year performance, SCHX leads with 20.84% vs 3.26% for SCMB. Both ETFs have the same 0.03% expense ratio. On volatility, SCMB has been the lower-risk option at 0.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHX or SCMB?

Over the 3-year period, SCHX has performed better with a 20.84% return vs 3.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHX or SCMB?

SCHX and SCMB have the same expense ratio: 0.03% per year.

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

SCMB has the higher dividend yield at 3.54%, compared with 1.02% for SCHX.

What is the main difference between SCHX and SCMB?

SCHX is categorized as Large Cap Blend Equities, while SCMB is Municipal Bonds. SCHX tracks Dow Jones U.S. Large-Cap Total Stock Market Index, while SCMB tracks ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross.

Which has better risk-adjusted returns?

SCMB currently has the higher Sharpe Ratio (2.11 vs 1.91), 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.