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.

SCHO: Schwab Short-Term U.S. Treasury ETF

What this ETF is trying to do

The SCHO ETF is designed to track short-term U.S. Treasury securities. These are essentially loans made to the United States government. Because this ETF focuses on short-term Treasury bonds, it is categorized as an ETF that holds government debt.

What the numbers show

When looking at this ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This measures only the change in the share price. For example, the year-to-date (YTD) price return is approximately -2.13%. The one-year price return is also approximately -2.13%.

• Total Return: This includes both the share price changes and the cash distributions (dividends) paid out to investors. The YTD total return is approximately 0.67%, and the one-year total return is approximately 1.65%. Over three years, the total return was approximately 12.86%.

This ETF has a history of forward splits. In a forward split, each old share becomes multiple new shares. This causes the price per share to drop 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 3.85%. These payments usually happen monthly, with the most common day for a payout being Monday. Over the last 12 months, the total amount of trailing distributions was approximately $0.92 per share.

It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash, they are separate from the movement of the share price itself.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). StockValueFinder uses an "erosion-risk score" to measure this risk. SCHO has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has a high income rating grade of "A."

• The three-year total return shows positive growth of approximately 12.86%.

• The erosion-risk score suggests the fund is currently stable.

Cons

• The share price has seen some declines, with a YTD price return of approximately -2.13%.

• The fund's top holdings data was not provided in the current report.

Beginner takeaway

For new investors, SCHO shows how total returns can be different from share price movements. Even when the share price goes down slightly, the cash distributions (total return) can help result in a positive overall measurement. Always look at both the price change and the distributions to understand how an ETF is performing.