FTMS vs SCHD
Franklin Short-Term Municipal Income ETF vs Schwab US Dividend Equity ETF
Which is better, FTMS or SCHD?
Short Term Municipal Bond against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y.
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 | FTMS | SCHD |
|---|---|---|
| Expense Ratio | 0.21% | 0.06%Best |
| AUM | $218M | $111.6B |
| Dividend Yield | 3.10% | 3.24% |
| Holdings | 264 | 206 |
| YTD Return | +0.61% | +24.55%Best |
| 1Y Return | +1.03% | +29.85%Best |
| 3Y Return (annualized) | - | +16.64% |
| 5Y Return (annualized) | - | +9.54% |
| Volatility (annualized) | 2.4%Best | 14.6% |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management |
| Category | Fixed Income | Equity |
| Style | Short Term Municipal Bond | Large Cap Value |
| Inception | Mar 18, 2013 | Oct 20, 2011 |
Not shown on this pair: Max Drawdown, $10,000 over the window, Top 10 Weight.
FTMS vs SCHD 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
FTMS vs SCHD Performance
Franklin Short-Term Municipal Income ETF (FTMS) is an ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year FTMS returned +1.03% while SCHD returned +29.85%. Year to date, FTMS is up 0.61% versus a gain of 24.55% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.4% for FTMS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FTMS charges 0.21% per year while SCHD charges 0.06%. On a $10,000 position that is $21 vs $6 annually, a gap of $15 per year that compounds over a long holding period. On income, FTMS currently yields 3.10% against 3.24% for SCHD.
Holdings Overlap
We hold position weights for 60 holdings in FTMS and 98 in SCHD, totalling 29.1% and 99.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 60 positions we hold weights for in FTMS and 98 in SCHD, against full books of 264 and 206.
You are not choosing between two funds in isolation.
Whichever of FTMS and SCHD 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, FTMS or SCHD?
FTMS has an expense ratio of 0.21% while SCHD charges 0.06%. SCHD is the cheaper option, by $15 a year on a $10,000 investment.
Which performed better, FTMS or SCHD?
Over the past year FTMS returned +1.03% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTMS or SCHD?
SCHD has been the more volatile fund at 14.6% annualized versus 2.4% for FTMS.
Should I hold both FTMS and SCHD?
FTMS and SCHD have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FTMS or SCHD?
FTMS yields 3.10% while SCHD yields 3.24%, so SCHD currently pays the higher dividend yield.
Is SCHD better than FTMS?
SCHD has a lower expense ratio. SCHD led over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.