Build passive income portfolio with SCHD & SCHY ETF

 

Why are SCHD & SCHY ETFs good to invest long term?

• Simple, just buy and hold and get dividend
• Low fee
• Pay high dividend consistently and also have potential to grow dividend 
• Diversify to stocks around the world
• SCHD is an index fund of "Dow Jones U.S. Dividend 100 Index" and SCHY is an index fund of "Dow Jones International Dividend 100 Index", which inclusion and rebalance criteria are simple and make sense

Dow Jones U.S. Dividend 100 Index [4] 

Dow Jones International Dividend 100 Index [4] 

Schwab U.S. Dividend Equity ETF [7]

• Symbol: SCHD
• Total Expense Ratio: 0.060%

Objective
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index.

Highlights

• A straightforward, low-cost fund offering potential tax-efficiency
• The Fund can serve as part of the core or complement in a diversified portfolio
• Tracks an index focused on the quality and sustainability of dividends
• Invests in stocks selected for fundamental strength relative to their peers, based on financial ratios

Portfolio (last update 31 March 2024)

Historical Dividend Payments [5]

Schwab International Dividend Equity ETF [8]

• Symbol: SCHY
• Total Expense Ratio: 0.140%

Objective
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of an index composed of high dividend yielding stocks issued by companies outside the United States.

Highlights

• A straightforward, low-cost fund offering potential tax-efficiency
• The Fund can serve as part of the core or complement in a diversified portfolio
• Tracks an index focused on the quality and sustainability of dividends by screening non-U.S. companies based on four dividend quality attributes
• Invests in non-U.S. high dividend yielding stocks with a record of paying dividends for at least 10 consecutive years, financial strength and screened for lower volatility

Portfolio (last update 31 March 2024)

Historical Dividend Payments [6]

References

[1] FMC: Free Market Cap: https://cleartax.in/glossary/free-market-capitalism-fmc/

[2] IAD Yield: Indicated Dividend Yield: https://www.investopedia.com/terms/i/indicateddividend.asp

[3] ADVT: Average Daily Volume Traded: https://www.acronymfinder.com/Business/ADVT.html

[4] Dow Jones Dividend Index Methodology: link

[5] SCHD Dividend Calculator: https://www.dripcalc.com/?tkr=SCHD

[6] SCHY Dividend Calculator: https://www.dripcalc.com/?tkr=SCHY

[7] SCHD ETF: https://www.schwabassetmanagement.com/products/schd

[8] SCHY ETF: https://www.schwabassetmanagement.com/products/schy