SCMB vs. VOO

Last updated Jun 9, 2026

SCMB (Schwab Municipal Bond ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - SCMB is a Municipal Bonds fund tracking the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 3 years, SCMB returned 3.23%/yr vs 21.45%/yr for VOO. At a 0.16 correlation, their price movements are largely independent. Both charge a 0.03% expense ratio.

Performance

SCMB vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Municipal Bond ETF (SCMB) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCMB achieves a 1.03% return, which is significantly lower than VOO's 8.72% return.

SCMB

• 1D: -0.04%
• 1M: 0.25%
• YTD: 1.03%
• 6M: 1.39%
• 1Y: 6.78%
• 3Y*: 3.23%
• 5Y*: —
• 10Y*: —

VOO

• 1D: 0.25%
• 1M: 0.24%
• YTD: 8.72%
• 6M: 8.77%
• 1Y: 24.91%
• 3Y*: 21.45%
• 5Y*: 13.49%
• 10Y*: 15.35%

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

SCMB vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SCMB Schwab Municipal Bond ETF	1.03%	3.78%	0.91%	5.86%	3.05%
VOO Vanguard S&P 500 ETF	8.72%	17.82%	24.98%	26.32%	7.75%

Correlation

The correlation between SCMB and VOO is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.20
Correlation (All Time) Calculated using the full available price history since Oct 13, 2022	0.16

SCMB vs. VOO - Sectors Allocation Comparison

Sectors	SCMB	VOO
Financial Services	8.8%	11.6%
Real Estate	3.4%	1.9%
Consumer Cyclical	2.6%	10.2%
Technology	0.9%	35.7%
Communication Services	0.5%	11.3%
Utilities	0.2%	2.4%
Industrials	0.2%	8.3%
Consumer Defensive	0.1%	4.9%
Healthcare	0.1%	8.5%
Basic Materials	0.0%	1.8%
Energy	0.0%	3.5%

Return for Risk

SCMB vs. VOO — Risk / Return Rank

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

SCMB

SCMB Risk / Return Rank: 71
SCMB Sharpe Ratio Rank: 81
SCMB Sortino Ratio Rank: 85
SCMB Omega Ratio Rank: 88
SCMB Calmar Ratio Rank: 52
SCMB Martin Ratio Rank: 50

VOO

VOO Risk / Return Rank: 69
VOO Sharpe Ratio Rank: 71
VOO Sortino Ratio Rank: 68
VOO Omega Ratio Rank: 71
VOO Calmar Ratio Rank: 62
VOO Martin Ratio Rank: 75

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. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Vanguard S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	2.34	2.08	+0.27
Sortino ratio: Return per unit of downside risk	3.44	2.80	+0.64
Omega ratio: Gain probability vs. loss probability	1.50	1.38	+0.12
Calmar ratio: Return relative to maximum drawdown	2.33	2.81	-0.48
Martin ratio: Return relative to average drawdown	7.75	12.97	-5.22
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. VOO - Sharpe Ratio Comparison

The current SCMB Sharpe Ratio is 2.34, which is comparable to the VOO Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of SCMB and VOO, 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	VOO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.34	2.08	+0.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.80	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.85	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.97	0.88	+0.09

Drawdowns

SCMB vs. VOO - Drawdown Comparison

The maximum SCMB drawdown since its inception was -6.13%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for SCMB and VOO.

Drawdown Indicators

	SCMB	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-6.13%	-33.99%	+27.86%
Max Drawdown (1Y) Largest decline over 1 year	-2.92%	-8.90%	+5.98%
Max Drawdown (3Y) Largest decline over 3 years	-5.57%	-18.69%	+13.12%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.52%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-0.90%	-2.66%	+1.76%
Average Drawdown Average peak-to-trough decline	-1.32%	-3.69%	+2.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	1.92%	-1.04%

Volatility

SCMB vs. VOO - Volatility Comparison

The current volatility for Schwab Municipal Bond ETF (SCMB) is 1.00%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.73%. This indicates that SCMB experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCMB	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.00%	3.73%	-2.73%
Volatility (6M) Calculated over the trailing 6-month period	2.17%	9.31%	-7.14%
Volatility (1Y) Calculated over the trailing 1-year period	2.91%	12.08%	-9.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.16%	16.85%	-12.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.16%	18.03%	-13.87%

SCMB vs. VOO - Expense Ratio Comparison

Both SCMB and VOO 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

SCMB vs. VOO - Dividend Comparison

SCMB's dividend yield for the trailing twelve months is around 3.54%, more than VOO's 1.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both SCMB and VOO in my portfolio?

SCMB and VOO have a correlation of 0.19, 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 VOO?

VOO has higher volatility (3.73%) compared to SCMB (1.00%). In terms of maximum drawdown, SCMB dropped -6.13% vs VOO's -33.99%.

Which ETF is better, SCMB or VOO?

On 3-year performance, VOO leads with 21.45% vs 3.23% for SCMB. Both ETFs have the same 0.03% expense ratio. On volatility, SCMB has been the lower-risk option at 1.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCMB or VOO?

Over the 3-year period, VOO has performed better with a 21.45% return vs 3.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCMB or VOO?

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

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

SCMB has the higher dividend yield at 3.54%, compared with 1.05% for VOO.

What is the main difference between SCMB and VOO?

SCMB is categorized as Municipal Bonds, while VOO is S&P 500. SCMB tracks ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while VOO tracks S&P 500 Index. They also come from different issuers: Charles Schwab and Vanguard.

Which has better risk-adjusted returns?

SCMB currently has the higher Sharpe Ratio (2.34 vs 2.08), 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.