Schwab International Dividend Equity ETF

SCHY

Market cap $2.13B

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.

Both developed and emerging market international stocks have beaten the S&P 500 by a wide margin over the past year. Their relative value and accelerating growth profiles look attractive even after their recent rally.

The Schwab International Dividend Equity ETF offers compelling international exposure with a 3.5% yield and a low 0.08% expense ratio. SCHY has outperformed U.S. benchmarks recently, benefiting from attractive valuations, earnings growth prospects, and a weakening dollar. The ETF focuses on non-U.S. dividend payers with strong financials, low volatility, and tax-efficient qualified dividends.

Generating a regular stream of income is a key component of any retirement planning playbook.

We are nearing the end of 2025, and while it may not have been the best year for investors, it hasn't been the worst either.

Schwab International Dividend Equity ETF earns a buy rating for its low 0.08% expense ratio and defensive sector positioning. SCHY offers a 3.62% dividend yield and strong sector diversification, but lags LVHI in yield, volatility, and risk-adjusted returns. SCHY's higher portfolio concentration and slightly elevated valuations increase risk, but its liquidity and cost efficiency are attractive.

Schwab International Dividend Equity ETF (SCHY) maintains a "Hold" rating, with performance matching the S&P 500 over the past 16 months. SCHY offers a low P/E and high dividend yield, but long-term EPS growth is modest and the PEG ratio is elevated. Technicals show a bullish long-term trend, yet recent momentum has weakened, signaling caution despite strong seasonal patterns.