Updated Reviewed quarterly
SCHD ETF: US Dividend Equity
TER0.06%·Yield (TTM)3.5%·DistributionQuarterly·NZ taxFIF (US-domiciled, > NZ$50K cost-basis)
Schwab's flagship dividend ETF holding 100 quality US companies with 10+ consecutive years of dividend payments. Growth and income combined.
SCHD Key Stats (2026)
What is SCHD ETF?
SCHD tracks the Dow Jones U.S. Dividend 100 Index, which selects companies based on financial strength, dividend history, and dividend growth potential.
To be included, companies must have paid dividends for at least 10 consecutive years and meet quality screens for profitability and financial health.
Top Holdings
Cisco, BlackRock, Home Depot, Chevron, Texas Instruments, Verizon, Pfizer, PepsiCo, Coca-Cola, AbbVie
SCHD vs VYM: Dividend ETF Showdown
| Feature | SCHD | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.06% |
| Dividend Yield | ~3.5% | ~3.0% |
| Holdings | 100 | 500+ |
| Selection Criteria | Quality + 10yr dividend history | Above-average yield |
| 5-Year Return | Higher (historically) | Lower |
| Dividend Growth | Strong focus | Less focus |
Bottom line: SCHD has historically outperformed VYM due to its quality focus and dividend growth criteria. VYM offers more diversification but lower returns.
How to Buy SCHD from New Zealand
Choose a Platform
SCHD is available on Hatch, Stake, Sharesies, and Interactive Brokers. All provide access to US markets.
Fund & Convert
Deposit NZD and convert to USD. Compare FX rates — this is often the biggest cost difference between platforms.
Buy SCHD
Search "SCHD" and place your order. Current price is around US$80 per share. Dividends paid quarterly.
Why Kiwi Investors Love SCHD
Growth + Income
SCHD delivers both capital appreciation and growing dividends. It's not just about yield — it's about total return.
Rock-Bottom Fees
At 0.06%, SCHD costs just $6 per year for every $10,000 invested. Incredible value for an actively-screened fund.
Quality Focus
Only financially strong companies with proven dividend track records make the cut. No dividend traps here.
Dividend Growth History
SCHD has grown its dividend every year since inception. Your income stream grows over time.
SCHD: Pros & Cons
Pros
- Strong historical total returns
- Growing dividend payments
- Ultra-low 0.06% expense ratio
- Quality screens avoid dividend traps
Cons
- ✕ Only 100 holdings (less diversified than VTI)
- ✕ Lower yield than JEPI (3.5% vs 7.5%)
- ✕ Underweight in tech (no growth stocks like NVIDIA)
- ✕ Quarterly dividends (not monthly)
Start Building Dividend Income
Compare platforms for buying SCHD from New Zealand
Related to SCHD
VYM — broader dividend exposure
500+ US high-yielders, both 0.06% TER.
SCHD vs VYM comparison
Quality screen vs broad coverage.
JEPI — high current income alternative
7.5% monthly vs SCHD 3.5% quarterly.
JEPI vs SCHD comparison
Income strategies head-to-head.
NZ dividend ETFs
PIE-tax NZX-listed dividend funds.
Best dividend ETFs for NZ
Curated dividend picks.
FAQ
Common questions about SCHD
What is the SCHD ETF?⌄
SCHD is the Schwab US Dividend Equity ETF — tracking the Dow Jones US Dividend 100 Index. Holds 100 US companies selected for dividend quality and 10+ years of consistent payouts. 0.06% TER, quarterly distributions. Has historically delivered above-market dividend growth, though past performance is not indicative of future results.
SCHD vs VYM — comparison for NZ investors⌄
SCHD holds 100 quality-screened dividend payers; VYM holds ~500 above-average-yield US stocks. Both charge 0.06% TER. SCHD's quality screen has historically produced stronger dividend growth; VYM is more diversified with a slightly higher current yield. See our SCHD vs VYM comparison for the side-by-side.
Can NZ residents buy SCHD?⌄
Yes — via Hatch, Stake, Sharesies (US market), and Interactive Brokers. As a US-domiciled ETF, SCHD is subject to NZ FIF rules above NZ$50,000 cost base. 15% US withholding on dividends with a W-8BEN; the 15% is typically claimable as a foreign tax credit on your IR3.
Are SCHD distributions PIE-taxed?⌄
No. PIE tax structure applies only to NZ-domiciled funds. SCHD is US-domiciled, so distributions and any FIF deemed income are taxed at your marginal rate (up to 39%), not the 28% PIR cap. Smartshares DIV (NZX-listed) is the closest PIE-taxed dividend alternative.
