Schwab International Dividend Equity ETF

SCHY

Market cap $1.34B

As you shift gears into retirement, you're going to want passive income to cover necessities and other expenses.

When your cash hoard grows big enough, you can start planning out your passive income streams.

The Schwab International Dividend Equity ETF offers low-cost, passive international dividend exposure, tracking the Dow Jones International Dividend 100 Index with a 3.72% yield and 0.08% expense ratio. The ETF focuses on quality mid- and large-cap stocks, excluding REITs, with strict dividend and liquidity screens and quarterly rebalancing for risk control. SCHY is best suited for income-focused investors seeking international diversification, especially in tax-advantaged accounts, but requires active risk management by holders.

If you're someone who doesn't like to research individual stocks to generate long-term returns, exchange-traded funds can be your ideal choice.

Investing in dividend ETFs is a good way to generate income for your portfolio. Dividend ETFs can be particularly attractive for retirees.

SCHY offers low-cost, stable international dividend income, ideal for conservative investors seeking reliability, tax clarity, and capital preservation in uncertain markets. IDVO provides higher monthly yield via covered calls and return of capital, suiting aggressive, income-focused investors comfortable with higher risk and NAV erosion. Both funds diversify away from U.S. market risk, which is valuable given current overvaluations and global uncertainties, but serve distinct portfolio roles.

As the tail end of the Baby Boomer generation reaches the qualifying full retirement age, a considerable number of those entering or already enjoying retirement need to find a balance in their time management.

Passive cash flow makes it easier for investors to cover their living expenses without selling their shares.

Vanguard International High Dividend Yield ETF offers broad diversification and higher total return potential by targeting high-yielding international stocks, but is heavily weighted in financials. Schwab International Dividend Equity ETF prioritizes consistent, growing dividends with strict selection criteria, resulting in lower volatility and defensive performance, but higher concentration risk at the top. SCHY's dividend growth rate will likely outpace VYMI, making it attractive for yield-on-cost-focused investors, though its total returns lag in bull markets.

The U.S. remains the dominant global economic power, but ongoing trade tensions may threaten its long-term leadership. I continue to invest in American businesses, but believe diversifying internationally is prudent for long-term wealth building. Uncertainty from U.S. trade policies could prompt other nations to unify and reduce reliance on America, shifting global dynamics.