SCHD vs ZTAX
Schwab US Dividend Equity ETF vs X-Square Municipal Income Tax Free ETF
Which is better, SCHD or ZTAX?
Large Cap Value against Municipal Bond.
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window.
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 | SCHD | ZTAX |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.92% |
| AUM | $111.6B | $5M |
| Dividend Yield | 3.24% | 4.72% |
| Holdings | 206 | 33 |
| YTD Return | +24.55%Best | -6.46% |
| 1Y Return | +29.85%Best | -2.54% |
| 3Y Return (annualized) | +16.64%Best | +3.62% |
| 5Y Return (annualized) | +9.54% | - |
| Volatility (annualized) | 13.6% | 8.5%Best |
| Max Drawdown | -16.1%Best | -23.9% |
| $10,000 over 3.4 years | $16,265Best | $11,163 |
| Fund Family | Charles Schwab Asset Management | X-Square Capital |
| Category | Equity | Tax Preferred |
| Style | Large Cap Value | Municipal Bond |
| Inception | Oct 20, 2011 | May 17, 2023 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.4 years row, are measured over the window both funds cover: May 19, 2023 to Oct 14, 2026 (3.4 years).
SCHD vs ZTAX 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 3.4 years both funds cover.
SCHD vs ZTAX Performance
Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management and X-Square Municipal Income Tax Free ETF (ZTAX) is an ETF from X-Square Capital. Over the past year SCHD returned +29.85% while ZTAX returned -2.54%. Year to date, SCHD is up 24.55% versus a loss of 6.46% for ZTAX.
Over three years, SCHD compounded at +16.64% per year against +3.62% for ZTAX.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 8.5% for ZTAX. 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 -16.1% for SCHD and -23.9% for ZTAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.15. They move largely independently of each other.
Fees and Cost Over Time
SCHD charges 0.06% per year while ZTAX charges 0.92%. On a $10,000 position that is $6 vs $92 annually, a gap of $86 per year that compounds over a long holding period. On income, SCHD currently yields 3.24% against 4.72% for ZTAX.
Holdings Overlap
We hold position weights for 98 holdings in SCHD and 14 in ZTAX, totalling 99.8% and 83.8% 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 98 positions we hold weights for in SCHD and 14 in ZTAX, against full books of 206 and 33.
You are not choosing between two funds in isolation.
Whichever of SCHD and ZTAX 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, SCHD or ZTAX?
SCHD has an expense ratio of 0.06% while ZTAX charges 0.92%. SCHD is the cheaper option, by $86 a year on a $10,000 investment.
Which performed better, SCHD or ZTAX?
Over the past year SCHD returned +29.85% vs -2.54% for ZTAX, so SCHD leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCHD or ZTAX?
SCHD has been the more volatile fund at 13.6% annualized versus 8.5% for ZTAX. Worst drawdown: SCHD -16.1% vs ZTAX -23.9%.
Should I hold both SCHD and ZTAX?
SCHD and ZTAX have a monthly-return correlation of 0.15, 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, SCHD or ZTAX?
SCHD yields 3.24% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
Is ZTAX better than SCHD?
SCHD has a lower expense ratio. SCHD led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.