SCMB vs. NEA

Last updated Jun 4, 2026

SCMB (Schwab Municipal Bond ETF) is Municipal Bonds fund tracking the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while NEA (Nuveen AMT-Free Quality Municipal Income Fund) is a stock. Over the past 3 years, SCMB returned 3.37%/yr vs 9.40%/yr for NEA. A 0.56 correlation means they provide meaningful diversification when combined. SCMB charges 0.03%/yr vs 1.41%/yr for NEA.

Performance

SCMB vs. NEA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Municipal Bond ETF (SCMB) and Nuveen AMT-Free Quality Municipal Income Fund (NEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCMB achieves a 1.07% return, which is significantly lower than NEA's 1.73% return.

SCMB

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

NEA

• 1D: -0.61%
• 1M: 3.38%
• YTD: 1.73%
• 6M: 2.95%
• 1Y: 14.66%
• 3Y*: 9.40%
• 5Y*: -0.08%
• 10Y*: 2.97%

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

SCMB vs. NEA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SCMB Schwab Municipal Bond ETF	1.07%	3.78%	0.91%	5.86%	3.05%
NEA Nuveen AMT-Free Quality Municipal Income Fund	1.73%	11.31%	9.50%	0.75%	6.36%

Correlation

The correlation between SCMB and NEA is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (All Time) Calculated using the full available price history since Oct 13, 2022	0.56

The correlation between SCMB and NEA shifts across timeframes, from 0.40 (1 year) to 0.56 (all time), reflecting how their relationship changes across market environments.

Return for Risk

SCMB vs. NEA — Risk / Return Rank

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

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

NEA

NEA Risk / Return Rank: 78
NEA Sharpe Ratio Rank: 79
NEA Sortino Ratio Rank: 76
NEA Omega Ratio Rank: 76
NEA Calmar Ratio Rank: 74
NEA Martin Ratio Rank: 83

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.

SCMB vs. NEA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Nuveen AMT-Free Quality Municipal Income Fund (NEA). 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.

	SCMB	NEA	Difference
Sharpe ratio: Return per unit of total volatility	2.34	1.39	+0.95
Sortino ratio: Return per unit of downside risk	3.45	2.08	+1.37
Omega ratio: Gain probability vs. loss probability	1.50	1.28	+0.22
Calmar ratio: Return relative to maximum drawdown	2.36	2.02	+0.34
Martin ratio: Return relative to average drawdown	7.89	8.11	-0.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCMB vs. NEA - Sharpe Ratio Comparison

The current SCMB Sharpe Ratio is 2.34, which is higher than the NEA Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of SCMB and NEA, 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

	SCMB	NEA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.34	1.39	+0.95
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.01	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.25	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.97	0.32	+0.66

Drawdowns

SCMB vs. NEA - Drawdown Comparison

The maximum SCMB drawdown since its inception was -6.13%, smaller than the maximum NEA drawdown of -43.83%. Use the drawdown chart below to compare losses from any high point for SCMB and NEA.

Drawdown Indicators

	SCMB	NEA	Difference
Max Drawdown Largest peak-to-trough decline	-6.13%	-43.83%	+37.70%
Max Drawdown (1Y) Largest decline over 1 year	-2.92%	-7.27%	+4.35%
Max Drawdown (3Y) Largest decline over 3 years	-5.57%	-15.16%	+9.59%
Max Drawdown (5Y) Largest decline over 5 years	—	-36.57%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.57%	—
Current Drawdown Current decline from peak	-0.87%	-5.41%	+4.54%
Average Drawdown Average peak-to-trough decline	-1.32%	-8.01%	+6.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.87%	1.81%	-0.94%

Volatility

SCMB vs. NEA - Volatility Comparison

The current volatility for Schwab Municipal Bond ETF (SCMB) is 1.04%, while Nuveen AMT-Free Quality Municipal Income Fund (NEA) has a volatility of 3.80%. This indicates that SCMB experiences smaller price fluctuations and is considered to be less risky than NEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCMB	NEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.04%	3.80%	-2.76%
Volatility (6M) Calculated over the trailing 6-month period	2.17%	8.50%	-6.33%
Volatility (1Y) Calculated over the trailing 1-year period	2.94%	10.59%	-7.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.16%	11.49%	-7.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.16%	11.81%	-7.65%

SCMB vs. NEA - Expense Ratio Comparison

SCMB has a 0.03% expense ratio, which is lower than NEA's 1.41% expense ratio.

Dividends

SCMB vs. NEA - Dividend Comparison

SCMB's dividend yield for the trailing twelve months is around 3.54%, less than NEA's 7.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NEA Nuveen AMT-Free Quality Municipal Income Fund	7.23%	7.36%	6.63%	3.95%	5.49%	4.50%	4.45%	4.46%	5.40%	5.33%	5.70%	5.71%
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 SCMB and NEA in my portfolio?

SCMB and NEA have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCMB or NEA?

NEA has higher volatility (3.80%) compared to SCMB (1.04%). In terms of maximum drawdown, SCMB dropped -6.13% vs NEA's -43.83%.

Which has better risk-adjusted returns?

SCMB currently has the higher Sharpe Ratio (2.34 vs 1.39), 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.