SCMB vs. BND
Compare and contrast key facts about Schwab Municipal Bond ETF (SCMB) and Vanguard Total Bond Market ETF (BND).
SCMB and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCMB is a passively managed fund by Schwab that tracks the performance of the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross. It was launched on Oct 11, 2022. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both SCMB and BND are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: SCMB or BND.
Key characteristics
| SCMB | BND | |
|---|---|---|
| YTD Return | 1.85% | 5.33% |
| 1Y Return | 7.18% | 10.70% |
| Sharpe Ratio | 1.67 | 1.65 |
| Daily Std Dev | 4.30% | 6.35% |
| Max Drawdown | -6.13% | -18.84% |
| Current Drawdown | 0.00% | -5.82% |
Correlation
The correlation between SCMB and BND is 0.77, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SCMB vs. BND - Performance Comparison
In the year-to-date period, SCMB achieves a 1.85% return, which is significantly lower than BND's 5.33% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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SCMB vs. BND - Expense Ratio Comparison
Both SCMB and BND 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%.
Risk-Adjusted Performance
SCMB vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Vanguard Total Bond Market ETF (BND). 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.
Dividends
SCMB vs. BND - Dividend Comparison
SCMB's dividend yield for the trailing twelve months is around 3.27%, less than BND's 3.36% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 3.27% | 3.10% | 0.59% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
BND Vanguard Total Bond Market ETF | 3.36% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
SCMB vs. BND - Drawdown Comparison
The maximum SCMB drawdown since its inception was -6.13%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for SCMB and BND. For additional features, visit the drawdowns tool.
Volatility
SCMB vs. BND - Volatility Comparison
The current volatility for Schwab Municipal Bond ETF (SCMB) is 0.70%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.06%. This indicates that SCMB experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.