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.

Understanding the Schwab Intermediate-Term U.S. Treasury ETF (SCHR)

What this ETF is trying to do

The SCHR ETF is designed to track U.S. Treasury bonds that have an "intermediate" term. This means it focuses on government debt that falls into a specific middle-range of time before it must be paid back.

What the numbers show

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

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the change in share price and the cash distributions (dividends) paid out to investors.

For SCHR, the numbers show different trends depending on how much time has passed:

• Year-to-Date (YTD): The price return is approximately -5.54%, while the total return is approximately -2.69%.

• One Year: The price return is approximately -5.62%, while the total return is approximately -1.84%.

• Three Years: The price return is approximately -0.17%, but the total return is much higher at approximately 11.93%.

Because this ETF has a history of forward splits, we use split-adjusted returns to see the true performance. In a forward split, each old share becomes multiple new shares. This changes the price per share but does not change the total value of what you own at that moment.

Income and distribution explanation

This ETF provides cash distributions to investors. The current distribution yield is approximately 4.10%. These payments usually happen monthly, with Monday being the most common day for a payout. Over the last 12 months, the total trailing distributions were approximately $0.97 per share.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF declines. StockValueFinder uses an "erosion-risk score" to measure this risk. SCHR has an erosion score of 75, which is labeled as "mild price erosion." This is a measurement of risk and does not necessarily mean the fund's value has collapsed. There is no "severe erosion-risk flag" for this ETF.

Pros

• The ETF provides regular monthly income.

• Over a three-year period, the total return was positive at approximately 11.93%.

Cons

• The share price has seen declines in the short term (both year-to-date and over the last year).

• There is a "mild" erosion-risk score.

Beginner takeaway

When looking at SCHR, remember that the share price and the total return are different. While the share price has gone down recently, the total return is higher because it includes the cash paid out to investors. Always look at the total return to get a fuller picture of how an investment is performing.