SCHWAB INTERNATIONAL DIVIDEND EQUITY ETF (SCHY)

What this ETF is trying to do

The SCHY ETF is an exchange-traded fund that focuses on international companies. Based on its name, it aims to provide exposure to stocks from outside the United States that pay dividends.

What the numbers show

When looking at an ETF, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and the money paid out through distributions.

For SCHY, the numbers show growth in both areas:

• Year-to-Date (YTD): The price return is approximately 5.00%, while the total return is approximately 7.86%.

• One Year: The price return was approximately 11.19%, and the total return was approximately 15.46%.

• Three Years: The price return was approximately 38.54%, and the total return was approximately 59.00%.

To give you an idea of price movement, the current price is $31.31. The estimated price from roughly one year ago was approximately $28.16.

Income and distribution explanation

Some investors look for ETFs that pay regular cash, known as distributions. SCHY has a distribution yield of approximately 3.75%. This means the cash distributed is about 3.75% of the ETF's price. Over the last 12 months, there were 4 distributions. These payments usually happen on a quarterly basis, often on Wednesdays.

It is important to remember that a high distribution yield is not the same thing as total return. While distributions provide cash, they are just one part of how an investment performs overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF steadily declines. It is important to distinguish between a falling share price and NAV erosion.

In the case of SCHY, the erosion-risk score is 100, and the label indicates "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag.

Pros

• The ETF has shown positive price returns and total returns over the one-year and three-year periods.

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

Cons

• The provided data does not list any specific top holdings or the total number of companies held in the fund.

Beginner takeaway

SCHY is an international dividend ETF that has shown both price growth and total returns over the last few years. It also provides regular cash distributions. When looking at this or any other ETF, always remember to look at the total return to see how both price changes and distributions work together.