What this ETF is trying to do

The Schwab Long-Term U.S. Treasury ETF (SCHQ) is an exchange-traded fund that invests in long-term U.S. government bonds. These are loans made to the U.S. government for a long period of time.

What the numbers show

As of October 2, 2026, the share price is $28.32. The estimated price from roughly one year ago was $32.34.

When looking at performance, it is important to see the difference between price return and total return:

• Price Return: This measures only the change in the share price. The one-year price return is -12.43%, and the year-to-date (YTD) price return is -10.66%.

• Total Return: This reflects the overall return, including distributions. The one-year total return is -8.25%, and the YTD total return is -7.39%.

Over a longer period, the three-year price return is -8.82%, while the three-year total return is 4.32%. The five-year total return is -32.00%.

Income and distribution explanation

This ETF usually pays distributions monthly. Over the last 12 months, it has made 12 payouts totaling $1.45 per share. This results in a distribution yield of approximately 5.12%.

For new investors, it is important to remember that a high distribution yield alone can be misleading. A fund can pay out cash while the share price is falling.

NAV erosion explanation

"NAV erosion" happens when the net asset value (the actual value of the fund's holdings) declines over time. While a falling share price is not the same as NAV erosion, StockValueFinder uses an erosion-risk score to monitor this.

SCHQ has an erosion-risk score of 75, which is labeled as "mild price erosion." The severe erosion-risk flag is currently false.

Pros

• Provides regular monthly cash distributions.

• The three-year total return is positive (4.32%), even though the share price fell during that time.

Cons

• The share price has declined recently, with a one-year price return of -12.43%.

• The five-year total return shows a significant decline of -32.00%.

• It has a "mild" erosion-risk rating.

Beginner takeaway

SCHQ provides income through monthly payments, but the share price has been volatile. Income investors generally care about "principal stability," which means they want the original amount they invested to stay steady. In this case, the total return (which includes the cash paid out) has been higher than the price return alone, but the long-term five-year trend is negative.