Schwab International Dividend Equity ETF (SCHY)

ETF Schwab International Dividend Equity ETF (SCHY) Overview:

Profile:

ETF Schwab International Dividend Equity ETF (SCHY) is a passively managed exchange-traded fund (ETF) that tracks the Dow Jones International Select Dividend Index. It invests in a diversified portfolio of large- and mid-cap international stocks with a focus on companies with a history of paying and growing dividends. SCHY covers developed markets outside the U.S.

Objective:

The primary investment goal of SCHY is to provide investors with exposure to international equities with a focus on dividend-paying companies. The ETF aims to generate current income through dividend distributions and long-term capital appreciation.

Issuer:

Charles Schwab Investment Management, Inc. is the issuer of SCHY. Founded in 1971, Charles Schwab is a renowned financial services company with a strong reputation for low fees and innovative investment products.

Market Share and Total Net Assets:

SCHY holds a market share of 6.4% in the international dividend equity ETF category. As of November 9, 2023, its total net assets stand at $4.46 billion.

Moat:

SCHY's competitive advantages include:

• Low expense ratio: At 0.06%, SCHY has one of the lowest expense ratios in its category, making it a cost-effective option for investors.
• High dividend yield: SCHY currently offers a dividend yield of 3.77%, which is attractive compared to other international equity ETFs.
• Broad diversification: The ETF's diversified portfolio helps mitigate individual stock risk and provides exposure to various sectors and countries.

Financial Performance:

SCHY has delivered strong historical performance. Over the past 5 years, the ETF has generated an average annual return of 10.74%, outperforming its benchmark index by 1.24%.

Liquidity:

SCHY has an average daily trading volume of over 3 million shares, indicating high liquidity. The bid-ask spread is tight, typically around 0.01%, making it easy to buy and sell shares at a fair price.

Market Dynamics:

The ETF's market environment is influenced by global economic indicators, interest rates, currency fluctuations, and geopolitical events. Additionally, the performance of international equities, particularly those with dividend-paying companies, impacts SCHY's price.

Competitors:

Key competitors of SCHY include:

• iShares International Dividend Equity ETF (IDV) with a market share of 52.2%
• Vanguard International Dividend Appreciation ETF (VIGI) with a market share of 25.5%
• SPDR S&P International Dividend ETF (DWX) with a market share of 8.4%

Expense Ratio:

SCHY has a low expense ratio of 0.06%, making it one of the most cost-effective options in its category.

Investment Approach and Strategy:

SCHY passively tracks the Dow Jones International Select Dividend Index, aiming to replicate its performance. The ETF invests primarily in large- and mid-cap companies from developed markets outside the U.S. that have a history of paying and growing dividends.

Key Points:

• Focus on international dividend-paying equities
• Low expense ratio
• Strong historical performance
• High dividend yield
• Broad diversification

Risks:

• Market risk: SCHY's price can fluctuate based on market conditions and the performance of international equities.
• Currency risk: Fluctuations in exchange rates can impact the ETF's value.
• Dividend risk: Companies may reduce or eliminate dividend payments, affecting the ETF's income.

Who should consider investing?:

SCHY is suitable for investors seeking:

• Exposure to international equities with a focus on dividend-paying companies
• Income generation through dividend distributions
• Long-term capital appreciation
• Cost-effective investment option

Fundamental Rating based on AI:

8.5/10

SCHY exhibits strong fundamentals, including:

• Solid financial performance
• Competitive expense ratio
• Experienced issuer with a good reputation
• High dividend yield
• Market leadership position

Resources and Disclaimers:

This analysis is based on data collected from the following sources:

• ETFdb.com
• Schwab.com
• Morningstar.com

This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.