SCMB vs. SCYB
Compare and contrast key facts about Schwab Municipal Bond ETF (SCMB) and Schwab High Yield Bond ETF (SCYB).
SCMB and SCYB 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. SCYB is a passively managed fund by Charles Schwab that tracks the performance of the ICE BofA US Cash Pay High Yield Constrained Index. It was launched on Jul 10, 2023. Both SCMB and SCYB 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 SCYB.
Key characteristics
| SCMB | SCYB | |
|---|---|---|
| YTD Return | 2.55% | 10.55% |
| 1Y Return | 8.27% | 17.56% |
| Sharpe Ratio | 1.99 | 3.77 |
| Sortino Ratio | 2.89 | 6.15 |
| Omega Ratio | 1.40 | 1.77 |
| Calmar Ratio | 3.12 | 8.42 |
| Martin Ratio | 10.69 | 33.12 |
| Ulcer Index | 0.77% | 0.53% |
| Daily Std Dev | 4.15% | 4.64% |
| Max Drawdown | -5.62% | -3.57% |
| Current Drawdown | -1.43% | -0.56% |
Correlation
The correlation between SCMB and SCYB is 0.54, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
SCMB vs. SCYB - Performance Comparison
In the year-to-date period, SCMB achieves a 2.55% return, which is significantly lower than SCYB's 10.55% 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. SCYB - Expense Ratio Comparison
Both SCMB and SCYB 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. SCYB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Schwab High Yield Bond ETF (SCYB). 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. SCYB - Dividend Comparison
SCMB's dividend yield for the trailing twelve months is around 4.44%, less than SCYB's 9.60% yield.
| TTM | 2023 | 2022 | |
|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 4.44% | 4.88% | 0.80% |
SCYB Schwab High Yield Bond ETF | 9.60% | 4.62% | 0.00% |
Drawdowns
SCMB vs. SCYB - Drawdown Comparison
The maximum SCMB drawdown since its inception was -5.62%, which is greater than SCYB's maximum drawdown of -3.57%. Use the drawdown chart below to compare losses from any high point for SCMB and SCYB. For additional features, visit the drawdowns tool.
Volatility
SCMB vs. SCYB - Volatility Comparison
Schwab Municipal Bond ETF (SCMB) has a higher volatility of 2.02% compared to Schwab High Yield Bond ETF (SCYB) at 1.21%. This indicates that SCMB's price experiences larger fluctuations and is considered to be riskier than SCYB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.