CATF vs SCMB

CATFBAmerican Century California Municipal Bond ETF

SCMBASchwab Municipal Bond ETF

In short

CATF A California-only muni portfolio that is actively run, not index-tracked: roughly 400 investment-grade bonds picked for income exempt from federal and California income taxes, at 0.25% with no fee waiver involved.

SCMB Schwab'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.

Stated mandate

CATF The fund seeks high current income exempt from federal and California income taxes. It primarily invests in investment-grade bonds exempt from those taxes, using top-down credit and duration analysis plus research-driven security selection.

SCMB 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

• CATF Income aims to dodge two tax bills, not one: the portfolio sits in investment-grade bonds exempt from both federal and California income taxes, and it pays out monthly.americancentury.com
• Human judgment, not a rulebook: top-down credit and duration calls plus bond-by-bond research including nonrated names, with the S&P California AMT-Free index as the yardstick.americancentury.com
• 0.25% with no fee waiver sits near the muni category median and close to index-tracker TFI at 0.23%, a tight price for active, single-state management.
• Sits in the upper half of a crowded muni ETF field, and what it holds matches what it promises: California paper, investment grade, income first.

• SCMB 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

• CATF Thinly traded and still a modest-sized fund, so bid-ask spreads can run wider than the category's national giants and larger orders need more care.
• One state, one budget. All-California issuers means the portfolio rides California's economy, and the state exemption only counts if you pay California income tax.
• Launched in 2024, so the track record is short next to muni funds with decades of rate cycles behind them.

• SCMB 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.

Full CATF profile⁠

Full SCMB profile⁠