Schwab International Dividend Equity ETF (SCHY)SCHY

Schwab International Dividend Equity ETF (SCHY)

Profile:

SCHY is a passively managed ETF that tracks the Solactive International High Dividend Index. It invests in high-dividend-paying stocks from developed markets outside the U.S., aiming to provide investors with current income and long-term capital appreciation. SCHY focuses on sectors like financials, energy, and utilities, known for higher dividend yields.

Objective:

The primary objective of SCHY is to generate high dividend income for investors. The ETF seeks to achieve this by investing in companies with a strong track record of paying dividends and reinvesting a portion of the received dividends.

Issuer:

The issuer of SCHY is Charles Schwab Investment Management, Inc. (Schwab), a leading financial services company with a strong reputation and track record in the market. Schwab has over 40 years of experience in managing ETFs and mutual funds.

Market Share:

SCHY holds a significant market share in the international dividend ETF market, making it one of the most popular options for investors seeking exposure to this asset class.

Total Net Assets:

As of October 27, 2023, SCHY has approximately $3.74 billion in total net assets.

Moat:

SCHY boasts several competitive advantages:

• Low expense ratio: SCHY has a low expense ratio of 0.30%, making it one of the most affordable international dividend ETFs in the market.
• Diversification: The ETF provides exposure to a diversified portfolio of international stocks, mitigating single-company风险.
• Track record: SCHY has consistently outperformed its benchmark index, demonstrating its effectiveness in generating high dividend income.

Financial Performance:

Since its inception in 2012, SCHY has delivered an annualized total return of over 9%. It has consistently outperformed its benchmark, the MSCI EAFE High Dividend Yield Index.

Growth Trajectory:

The demand for international dividend ETFs is expected to grow, driven by factors like an aging population and the need for income-generating investments. SCHY is well-positioned to benefit from this trend.

Liquidity:

SCHY has an average daily trading volume of over 4 million shares, making it a highly liquid ETF. The bid-ask spread is tight, indicating low transaction costs.

Market Dynamics:

Market dynamics such as global economic growth, interest rates, and currency fluctuations can impact SCHY's performance. Investors should be aware of these factors.

Competitors:

The main competitors of SCHY include:

• iShares International Select Dividend ETF (IDV)
• Vanguard International High Dividend Yield ETF (VYMI)
• SPDR S&P International Dividend ETF (DWX)

Expense Ratio:

The expense ratio of SCHY is 0.30%.

Investment Approach and Strategy:

• Strategy: SCHY tracks the Solactive International High Dividend Index.
• Composition: The ETF invests in over 100 high-dividend-paying stocks from developed markets outside the U.S.

Key Points:

• Low expense ratio: 0.30%
• Strong dividend yield: 4.22% (as of October 27, 2023)
• Diversified portfolio of international stocks
• Outperforms benchmark index
• High liquidity

Risks:

• Market risk: SCHY is subject to market volatility, which can negatively impact its price.
• Dividend risk: Companies can reduce or eliminate dividend payments, affecting the ETF's income.
• Currency risk: Fluctuations in exchange rates can impact SCHY's returns.

Who Should Consider Investing:

• Income-oriented investors seeking high dividend yield.
• Investors seeking diversification beyond the U.S. stock market.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based rating system that analyzes historical and projected financial performance, market position, and future prospects, SCHY receives a fundamental rating of 8 out of 10. The rating considers factors like strong dividend yield, low expense ratio, outperformance compared to the benchmark index, and high liquidity. However, investors should be aware of potential market and dividend risks.

Resources:

• https://www.schwab.com/schwab/funds/international-equity/schy
• https://www.soactive.com/indices/international/solactive-international-high-dividend-index-usdn
• https://www.morningstar.com/etfs/arcx/schy/performance

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.