SCNM vs. SCEP

Last updated Jun 4, 2026

SCNM (Sterling Capital National Municipal Bond ETF) and SCEP (Sterling Capital Hedged Equity Premium Income ETF) are both exchange-traded funds - SCNM is a Municipal Bonds fund actively managed by Sterling Capital, while SCEP is a Equity Hedged fund actively managed by Sterling Capital. Both are actively managed. At a 0.24 correlation, their price movements are largely independent. SCNM charges 0.35%/yr vs 0.65%/yr for SCEP.

Performance

SCNM vs. SCEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sterling Capital National Municipal Bond ETF (SCNM) and Sterling Capital Hedged Equity Premium Income ETF (SCEP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCNM achieves a 1.38% return, which is significantly lower than SCEP's 3.92% return.

SCNM

• 1D: 0.12%
• 1M: 0.93%
• YTD: 1.38%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SCEP

• 1D: 0.05%
• 1M: 2.13%
• YTD: 3.92%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SCNM vs. SCEP - Yearly Performance Comparison

	2026 (YTD)	2025
SCNM Sterling Capital National Municipal Bond ETF	1.38%	0.01%
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.92%	-0.50%

Correlation

The correlation between SCNM and SCEP is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 12, 2025	0.24

Return for Risk

SCNM vs. SCEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sterling Capital National Municipal Bond ETF (SCNM) and Sterling Capital Hedged Equity Premium Income ETF (SCEP). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	SCNM	SCEP	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	0.92	0.75	+0.16

Drawdowns

SCNM vs. SCEP - Drawdown Comparison

The maximum SCNM drawdown since its inception was -2.81%, smaller than the maximum SCEP drawdown of -7.25%. Use the drawdown chart below to compare losses from any high point for SCNM and SCEP.

Drawdown Indicators

	SCNM	SCEP	Difference
Max Drawdown Largest peak-to-trough decline	-2.81%	-7.25%	+4.44%
Current Drawdown Current decline from peak	-0.46%	-0.16%	-0.30%
Average Drawdown Average peak-to-trough decline	-0.83%	-1.59%	+0.76%

Volatility

Volatility by Period

	SCNM	SCEP	Difference
Volatility (1Y) Calculated over the trailing 1-year period	3.27%	9.87%	-6.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.27%	9.87%	-6.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.27%	9.87%	-6.60%

SCNM vs. SCEP - Expense Ratio Comparison

SCNM has a 0.35% expense ratio, which is lower than SCEP's 0.65% expense ratio.

Dividends

SCNM vs. SCEP - Dividend Comparison

SCNM's dividend yield for the trailing twelve months is around 1.50%, less than SCEP's 3.24% yield.

Position	TTM	2025
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.24%	0.38%
SCNM Sterling Capital National Municipal Bond ETF	1.50%	0.23%

Frequently Asked Questions

Can I hold both SCNM and SCEP in my portfolio?

SCNM and SCEP have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SCNM or SCEP?

On fees, SCNM is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SCNM or SCEP?

SCNM is cheaper with a 0.35% expense ratio, compared with 0.65% for SCEP.

Which ETF pays a higher dividend yield, SCNM or SCEP?

SCEP has the higher dividend yield at 3.24%, compared with 1.50% for SCNM.

What is the main difference between SCNM and SCEP?

SCNM is categorized as Municipal Bonds, while SCEP is Equity Hedged. Their fees differ too: 0.35% for SCNM and 0.65% for SCEP.