Category Review
Municipal bond funds are down for the year after a third-quarter selloff erased the first-half gain
Schwab Municipal Bond ETF
$24.33+0.16 (+0.66%)
- 0.03%
- $3.1B
- −2.5%
- 3.80%
- 2.5M sh
- $24.10
- low $23.81high $26.20
The ETF.net SCMB Grade
A
Score 85 out of 100
- 3 of 63
Score 85 of 100 falls in the A band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.A99 out of 100Rank 1 of 63Mission
Whether the fund did what it promised, tested against its stated mandate.A97 out of 100Rank 11 of 59Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.C49 out of 100Rank 30 of 63Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.A82 out of 100Rank 6 of 63Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.A83 out of 100Rank 10 of 63Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.A71 out of 100Rank 17 of 63
Our read on SCMB
ASchwab's take on the core muni sleeve: three basis points, thousands of AMT-free bonds from across the country, and a monthly distribution. Bottom-of-the-table pricing, no frills attached.
The fund seeks to track, before fees and expenses, the total return of an index representing the U.S. AMT-free municipal bond market.
Why people hold it
- Three basis points a year, against a 0.30% median for muni bond funds. Among the top-graded names in the category, only Vanguard's VTEB matches that fee.
- Follows the ICE AMT-Free Core U.S. National Municipal Index across thousands of bonds and issuers, so no single borrower or state drives the portfolio.
- Plain passive plumbing done well: it stays close to its index, trades actively, and pays monthly. One of the stronger implementations in the muni aisle.
Worth knowing
- Launched in 2022, so its live record is shorter than muni staples like MUB and VTEB, even though the strategy is the same broad-market idea.
- Bond math still applies. This is a portfolio of municipal bonds, so share prices move opposite to interest rates.
- National in scope, not single-state like NYF, so it is not built around any one state's tax rules.
SCMB Holdings
- Bonds
- 7,309
- 2%
- Alabama Toll Rd Brdg & Tunl Au 5.00% 10/01/2032 (BBG0250H27G3)
Sectors
- Financials100.0%
Geography
- United States100.00%
SCMB Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.Not enough history yet.
SCMB$9,749
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | SCMB |
|---|---|
| Year to date | −3.6% |
| 1 month | −1.6% |
| 3 months | −5.0% |
| 1 year | −2.5% |
| 3 years | +2.6% |
| 5 years | — |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | SCMB |
|---|---|---|
| 2026 YTD | −3.6% | |
| 2025 | +3.8% | |
| 2024 | +0.9% | |
| 2023 | +5.9% | |
| 2022 | +3.0% |
SCMB in the news
SCMB Dividends
- 3.80%
- $0.92
- $0.09 per share
- Monthly
Distribution history
SCMB Risk
- 5.7%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- −0.32
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −6.7%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.96
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
SCMB Cost
0.03%
SCMB0.03%
- The middle half of Other Municipal Bond funds
- Median 0.30%
No Other Municipal Bond fund charges less.
Other funds in Other Municipal Bond
- AVTEBVanguard Tax-Exempt Bond ETFExpense ratio 0.03%1 year return −2.4%
- AMUBiShares National Muni Bond ETFExpense ratio 0.05%1 year return −2.2%
- AVCRMVanguard Core Tax-Exempt Bond EExpense ratio 0.12%1 year return −1.3%
- ATFIState Street SPDR Nuveen ICE Municipal Bond ETFExpense ratio 0.23%1 year return −2.9%
- ACMFiShares California Muni Bond ETFExpense ratio 0.08%1 year return −2.3%