SCHY mirrors SCHD’s strategy but targets global dividend stocks, expanding income-focused portfolios beyond U.S. equities.
Schwab has introduced the Schwab International Dividend Equity ETF (SCHY), designed to pair with its popular U.S. Dividend Equity ETF (SCHD). SCHY applies a similar selection methodology, requiring stocks to have paid dividends for at least 10 consecutive years and evaluating factors like cash flow-to-total debt, ROE, yield, and dividend growth.
Like SCHD, SCHY screens for volatility before finalizing its portfolio of 100 stocks. The fund aims to capture high-quality, high-yield dividend stocks outside the U.S., addressing a gap in SCHD’s domestic focus. Both ETFs prioritize balance sheet fundamentals and dividend sustainability.
The launch allows investors to diversify income streams globally while maintaining a consistent investment approach. SCHY’s strategy mirrors SCHD’s, offering a complementary tool for dividend-focused portfolios.