Schwab International Dividend Equity ETF

SCHY

Market cap $2.25B

Medalist funds for international income. The Top High-Dividend ETFs for Passive Income in 2026

The Schwab International Dividend Equity ETF (SCHY) enables U.S. investors to diversify internationally with cost efficiency and attractive yield. SCHY has outperformed the S&P 500 since November 2024, delivering over 40% total return versus 20.75% for the S&P 500. U.S. equity valuations remain elevated, with CAPE above 40x and S&P 500 dividend yields at historic lows.

Schwab International Dividend Equity ETF (SCHY) has a 3.42% dividend yield and competitive valuation, targeting ex-US large and mid-cap equities. SCHY's portfolio emphasizes quality screens, sector caps, and geographic diversification, but underperforms peers like VYMI and JIVE in total return and Sharpe ratio. While ex-US high dividend exposure can enhance portfolio yield and diversification, SCHY does not reduce volatility or max drawdown versus alternatives.

It's smart to diversify your portfolio beyond just U.S. stocks. These ETFs will quickly and easily have you invested in hundreds, if not thousands, of international stocks.

With the 10-year Treasury yield sitting at 4.34%, income investors face a genuine choice between risk-free government bonds and dividend-paying equities.

International equities trade at discounted valuations to U.S. equities. International equities also generally yield more, with some ETFs targeting particularly high-yield stocks in the sector. A quick look at three strong international equity dividend ETFs, with above-average yields and strong recent returns, follows.

Overshadowed by its domestic peer, the Schwab International Equity Dividend ETF merits closer examination. With international stocks racing higher, this ETF is meeting the moment with its well-diversified portfolio.

Schwab International Dividend Equity ETF/International equities have seen significant gains these past few months, and momentum could easily continue for the year. SCHY is a simple international dividend equity ETF, sister fund to the well-known SCHD. SCHY's 3.2% dividend yield is above average, if not outstanding, with strong growth since inception. Performance has been good since inception, outstanding these past few months.

ETFs to diversify beyond US stocks. ETFs to diversify beyond US stocks.

Most retirees and prospective retirees are in a tricky environment in 2026, to say the least.