Schwab International Dividend Equity ETF

SCHY

Market cap $2.23B

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.

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.