Share-split context: A forward split was recorded on Oct 11, 2024 with coefficient 2. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.

SCHWAB 5-10 YEAR CORPORATE BOND ETF (SCHI)

What this ETF is trying to do

The SCHWABB 5-10 YEAR CORPORATE BOND ETF (SCHI) is an exchange-traded fund that focuses on corporate bonds. These are essentially loans made to companies that have a timeframe of five to ten years to pay the money back.

What the numbers show

When looking at this ETF, it is important to understand two different types of returns: price return and total return. Price return only tracks how much the share price changes. Total return includes both the price change and the cash distributions (dividends) paid out to investors.

Based on the data:

• Year-to-Date (YTD): The price return is approximately -6.70%, while the total return is approximately -3.07%.

• One Year: The price return is approximately -7.03%, while the total return is approximately -2.21%.

• Three Year: The price return is approximately 3.33%, while the total return is much higher at approximately 20.27%.

This ETF has a history of forward splits. In a forward split, each old share becomes multiple new shares. This causes the quoted per-share price to fall proportionally, but it does not change how much of the fund you own.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 5.33%. This number describes the cash paid out relative to the current share price of $21.43.

Distributions for this fund usually happen monthly, with Monday being the most common day for payouts. While these distributions provide cash income, they are not the same as total return. A high yield does not guarantee that your overall investment will grow.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. StockValueFinder uses an erosion-risk score to measure this risk.

For SCHI, the erosion score is 75, which is labeled as "Mild price erosion." This is a measurement of risk and does not mean the fund's value has definitely collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The fund has a history of providing regular monthly distributions.

• Over a three-year period, the total return was approximately 20.27%.

• It has an income rating grade of "B."

Cons

• The share price has seen a decline recently, with negative price returns for both the year-to-date and one-year periods.

• There is a measurement of "mild" price erosion.

Beginner takeaway

When looking at bond ETFs like SCHI, remember that the share price and the cash income (distributions) tell different stories. A falling share price can be offset by the cash paid out, which is why "total return" is a helpful number to watch. Always remember that a high distribution yield is not the same as a total profit.