DSM vs SCMB
BNY Mellon Strategic Municipal Bond Fund Inc vs Schwab Municipal Bond ETF
Which is better, DSM or SCMB?
Each has led over a different period.
SCMB has a lower expense ratio. DSM led over 3Y, SCMB over 1Y and the full window. The two have moved almost in lockstep, correlation 0.91.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DSM | SCMB |
|---|---|---|
| Expense Ratio | 1.09% | 0.03%Best |
| AUM | $335M | $3.1B |
| Dividend Yield | 5.50% | 3.74% |
| Holdings | 233 | 7,278 |
| YTD Return | -13.99% | -3.06%Best |
| 1Y Return | -10.44% | -2.05%Best |
| 3Y Return (annualized) | +5.32%Best | +2.76% |
| 5Y Return (annualized) | -4.62% | - |
| Volatility (annualized) | 15.0% | 6.2%Best |
| Max Drawdown | -20.3% | -6.7%Best |
| $10,000 over 4 years | $10,593 | $11,042Best |
| Fund Family | BNY Mellon Investment Management | Charles Schwab Investment Mangement |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Nov 22, 1989 | Oct 11, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Oct 12, 2022 to Oct 14, 2026 (4 years).
DSM vs SCMB growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
DSM vs SCMB Performance
BNY Mellon Strategic Municipal Bond Fund Inc (DSM) is an ETF from BNY Mellon Investment Management and Schwab Municipal Bond ETF (SCMB) is an ETF from Charles Schwab Investment Mangement. Over the past year DSM returned -10.44% while SCMB returned -2.05%. Year to date, DSM is down 13.99% versus a loss of 3.06% for SCMB.
Over three years, DSM compounded at +5.32% per year against +2.76% for SCMB. Across the full 4-year window we track, SCMB has the edge at +2.51% annualized vs +1.45%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DSM has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 6.2% for SCMB. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -20.3% for DSM and -6.7% for SCMB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DSM charges 1.09% per year while SCMB charges 0.03%. On a $10,000 position that is $109 vs $3 annually, a gap of $106 per year that compounds over a long holding period. On income, DSM currently yields 5.50% against 3.74% for SCMB.
Holdings Overlap
We hold position weights for 101 holdings in DSM and 2,477 in SCMB, totalling 41.1% and 23.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 22 positions appear in both.
The two holdings books were reported 63 days apart, DSM as of Jul 31, 2026 and SCMB as of Oct 2, 2026, so some of the difference between them is the time between the two reports rather than the funds.
22 positions in common, counted across the 101 positions we hold weights for in DSM and 2,477 in SCMB, against full books of 233 and 7,278.
Top Shared Holdings
| Stock | Weight in DSM | Weight in SCMB | Difference |
|---|---|---|---|
| IL ILS 5 11/01/2028Ils 5.000 11/01/28 | 0.85% | 0.05% | 0.80% |
| IL CHI 6 01/01/2038Chicago Il | 0.84% | 0.01% | 0.83% |
| AL JEFUTL 5.5 10/01/Jefferson Cnty Al Swr Revenue 5.5 10-01-2053 | 0.72% | 0.07% | 0.65% |
| NJ NJSTRN 5.5 06/15/New Jersey Transportation Trust Fund Authority 0.055 12/15/2032 | 0.63% | 0.05% | 0.58% |
| MI MISFAC 4 10/15/20Michigan State Building Authority 4 10/15/2049 | 0.59% | 0.01% | 0.58% |
| IL STSGEN 4 01/01/20Sales Tax Securitization Corp Il 4 2039-01-01 | 0.53% | 0.00% | 0.53% |
| TX GPTTRN 4 10/01/20Grand Parkway Transprtn Corp T Gpttrn 10/49 Fixed 4 | 0.49% | 0.03% | 0.46% |
| IL MPNFAC 0 12/15/20Metropolitan Pier & Exposition Authority 0 2036-12-15 | 0.45% | 0.00% | 0.45% |
| NJ NJSTRN 5 06/15/20New Jersey Transportation Trust Fund Authority, Series 2022 Cc 06/15/2044 | 0.43% | 0.00% | 0.43% |
| SC SCSUTL 4 12/01/20South Carolina St Public Svc A 4 12/01/2055 | 0.43% | 0.00% | 0.43% |
You are not choosing between two funds in isolation.
Whichever of DSM and SCMB you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, DSM or SCMB?
DSM has an expense ratio of 1.09% while SCMB charges 0.03%. SCMB is the cheaper option, by $106 a year on a $10,000 investment.
Which performed better, DSM or SCMB?
Over the past year DSM returned -10.44% vs -2.05% for SCMB, so SCMB leads on 1-year performance. Over the longest common window we track (4 years), DSM annualized +1.45% vs +2.51% for SCMB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DSM or SCMB?
DSM has been the more volatile fund at 15.0% annualized versus 6.2% for SCMB. Worst drawdown: DSM -20.3% vs SCMB -6.7%.
Should I hold both DSM and SCMB?
DSM and SCMB have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, DSM or SCMB?
DSM yields 5.50% while SCMB yields 3.74%, so DSM currently pays the higher dividend yield.
Is SCMB better than DSM?
SCMB has a lower expense ratio. DSM led over 3Y, SCMB over 1Y and the full window. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.