SCMB vs TAFL
Schwab Municipal Bond ETF vs AB Tax-Aware Long Municipal ETF
Which is better, SCMB or TAFL?
Each has led over a different period.
SCMB has a lower expense ratio. SCMB led over 1Y, TAFL over the full window. The two have moved almost in lockstep, correlation 0.94.
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 | SCMB | TAFL |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.28% |
| AUM | $3.1B | $60M |
| Dividend Yield | 3.74% | 4.37% |
| Holdings | 7,278 | 326 |
| YTD Return | -3.06%Best | -4.38% |
| 1Y Return | -2.05%Best | -3.64% |
| 3Y Return (annualized) | +2.76% | - |
| Volatility (annualized) | 4.4%Best | 5.5% |
| Max Drawdown | -6.7%Best | -8.1% |
| $10,000 over 2.8 years | $10,243 | $10,291Best |
| Fund Family | Charles Schwab Investment Mangement | AllianceBernstein L.P. |
| Category | Tax Preferred | Tax Preferred |
| Style | Municipal Bond | Municipal Bond |
| Inception | Oct 11, 2022 | Dec 13, 2023 |
Not shown on this pair: 5Y Return (annualized), Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Dec 13, 2023 to Oct 14, 2026 (2.8 years).
SCMB vs TAFL 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 2.8 years both funds cover.
SCMB vs TAFL Performance
Schwab Municipal Bond ETF (SCMB) is an ETF from Charles Schwab Investment Mangement and AB Tax-Aware Long Municipal ETF (TAFL) is an ETF from AllianceBernstein L.P.. Over the past year SCMB returned -2.05% while TAFL returned -3.64%. Year to date, SCMB is down 3.06% versus a loss of 4.38% for TAFL.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TAFL has been the more volatile fund, with annualized monthly volatility of 5.5% compared with 4.4% 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 -6.7% for SCMB and -8.1% for TAFL. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
SCMB charges 0.03% per year while TAFL charges 0.28%. On a $10,000 position that is $3 vs $28 annually, a gap of $25 per year that compounds over a long holding period. On income, SCMB currently yields 3.74% against 4.37% for TAFL.
Holdings Overlap
We hold position weights for 2,477 holdings in SCMB and 68 in TAFL, totalling 23.7% and 50.6% 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.
22 positions in common, counted across the 2,477 positions we hold weights for in SCMB and 68 in TAFL, against full books of 7,278 and 326.
Top Shared Holdings
| Stock | Weight in SCMB | Weight in TAFL | Difference |
|---|---|---|---|
| NY TRBTRN 5 05/15/20Triborough Bridge And Tunnel Authority, New York, Sales Tax Revenue Bonds, Mta Bridges & Tunnels, Tbta Capital Lockbox-City Sales Tax, Series 2024A-1 | 0.00% | 2.73% | 2.73% |
| SC SCSUTL 5.25 12/01South Carolina Public Service Authority, Santee Cooper Revenue Obligations, Refunding Series 2024B 5.25 12/01/2054 | 0.01% | 1.79% | 1.78% |
| CO DENAPT 5 11/15/20City And County Of Denver Co Airport System Revenuefx.Rt. Muni Bond | 0.00% | 1.56% | 1.56% |
| AZ SALAGR 5 01/01/20Salt River Project Agricultural Improvement & Power District 5 01/01/2044 | 0.00% | 1.55% | 1.55% |
| PA PSUHGR 5.25 09/01Pennsylvania State University/The 5.25 09/01/2053 | 0.00% | 1.53% | 1.53% |
| NY TRBTRN 5.25 05/15Triborough Brdg & Tunl Auth N Bds 2024As 5.25 2064-05-15 | 0.01% | 1.51% | 1.50% |
| NY NYCUTL 5 06/15/20New York City Municipal Water Finance Authority 5 06/15/2048 | 0.00% | 1.52% | 1.52% |
| NY NYCGEN 5 05/01/20NEW YORK NY CITY TRANSITIONAL NYCGEN 05/50 FIXED 5 | 0.00% | 1.51% | 1.51% |
| NY NYC 5 09/01/2048New York City, New York, General Obligation Bonds, Fiscal 2025 Series C-1 | 0.01% | 1.50% | 1.49% |
| GA MELPWR 5 07/01/20Municipal Elec Auth Ga 5% Jul 01, 2052 | 0.01% | 1.46% | 1.45% |
You are not choosing between two funds in isolation.
Whichever of SCMB and TAFL 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, SCMB or TAFL?
SCMB has an expense ratio of 0.03% while TAFL charges 0.28%. SCMB is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, SCMB or TAFL?
Over the past year SCMB returned -2.05% vs -3.64% for TAFL, so SCMB leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SCMB or TAFL?
TAFL has been the more volatile fund at 5.5% annualized versus 4.4% for SCMB. Worst drawdown: SCMB -6.7% vs TAFL -8.1%.
Should I hold both SCMB and TAFL?
SCMB and TAFL have a monthly-return correlation of 0.94, 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, SCMB or TAFL?
SCMB yields 3.74% while TAFL yields 4.37%, so TAFL currently pays the higher dividend yield.
Is TAFL better than SCMB?
SCMB has a lower expense ratio. SCMB led over 1Y, TAFL over the full window. The two have moved almost in lockstep, correlation 0.94. Which one suits a particular account depends on what it is for. This is information, not a recommendation.