FMUN vs SCMB

FMUNAFidelity Systematic Municipal Bond Index ETF

SCMBASchwab Municipal Bond ETF

In short

FMUN Fidelity's muni index fund runs on its own rules-based benchmark and charges 0.05% a year, a fraction of what the typical muni fund costs. Roughly 1,200 bonds, monthly payouts, all pointed at income the federal government doesn't tax.

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

FMUN The fund seeks high current income that is exempt from federal income tax. It normally invests at least 80% of assets in municipal securities whose interest is federally tax-exempt.

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

• FMUN 0.05% a year against a roughly 0.30% median for muni bond funds. On tax-exempt income, that gap is the part you keep.
• Roughly 1,200 municipal bonds, so no single issuer or project carries the portfolio.
• Pays monthly, with at least 80% of assets in municipal securities whose interest is exempt from federal income tax.
• One of the stronger builds in the muni ETF group: passive, broad, and squarely inside its stated mandate.

• 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

• FMUN Thinly traded and modest in size next to the category's giants, so bid-ask spreads can run wider.
• The benchmark is Fidelity's own Systematic U.S. Municipal Bond Index, not a licensed outside yardstick.fidelity.com
• Muni prices move with interest rates, and the tax break targeted here is federal. State-specific relief is a different product, like NYF for New York.

• 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 FMUN profile⁠

Full SCMB profile⁠