US-listed · NYSE Arca · FIF-eligible (above NZ$50K)
Schwab SCHZ Schwab Intermediate-Term U.S. Treasury ETF
Tracks the Bloomberg US Treasury 3-10 Year Index — intermediate-duration US Treasury debt.
Updated Reviewed quarterly
About this fund
What is SCHZ?
SCHZ is the US-listed ticker for Schwab Intermediate-Term U.S. Treasury ETF, issued by Schwab. Tracks the Bloomberg US Treasury 3-10 Year Index — intermediate-duration US Treasury debt. TER is 0.03% per year, with a trailing 12-month distribution yield of approximately 4.2%. Distributions are paid monthly.
How to buy
Where can I buy SCHZ from New Zealand?
Hatch NZ-built. US$3 flat per trade, ~0.5% FX.
Stake Commission-free US shares; ~0.7% FX.
Sharesies NZ + AU + US in one account; tiered subscription pricing.
Interactive Brokers Tiered commissions; FX margin ~0.002% (lowest published of platforms reviewed).
See the full platform comparison for fees, minimums, and supported markets across all 11 NZ-accessible brokers.
NZ tax
How is SCHZ taxed for NZ investors?
SCHZ is US-listed, so it sits in the Foreign Investment Fund (FIF) regime once your overseas-share holdings exceed NZ$50,000 cost basis. Below that threshold, the FIF regime does not apply and you pay tax on dividends only.
Above NZ$50K cost basis, most NZ retail investors use the Fair Dividend Rate (FDR) method — deemed income = 5% × opening market value × your marginal tax rate. FDR vs CV method →
US dividends carry 15% US withholding tax under the NZ–US tax treaty (file a W-8BEN with your broker; without it, the rate is 30%). The 15% can be claimed as a foreign tax credit on your IR3.
Tax outcomes depend on your portfolio size, marginal rate, and FDR-vs-CV election. See PIE vs FIF for the full comparison and consult a registered NZ tax adviser for personalised guidance.
FAQ
Common questions about SCHZ
What is the SCHZ ETF? ⌄
SCHZ is the Schwab Intermediate-Term U.S. Treasury ETF — it tracks the Bloomberg US Treasury 3-10 Year Index, holding intermediate-duration US government debt. TER is 0.03%, distributions paid monthly. Suited to investors wanting exposure to US Treasury credit-quality fixed income with moderate duration.
Can NZ residents buy SCHZ? ⌄
Yes. SCHZ is available via Hatch, Stake, Sharesies (US market), and Interactive Brokers. Once your overseas-share holdings exceed NZ$50,000 cost basis, FIF rules apply. File a W-8BEN with your broker to apply the 15% NZ–US tax-treaty withholding rate to distributions.
Is SCHZ suited to fixed-income exposure? ⌄
Treasury ETFs like SCHZ provide exposure to US government-backed debt — historically considered the safest credit profile in the dollar fixed-income market. Intermediate-term funds (3-10 year duration) are typically less rate-sensitive than long-duration funds (TLT) but more so than short-duration funds (SGOV). The decision between them turns on your view of US interest rates and your time horizon.
How are SCHZ distributions taxed in NZ? ⌄
Above NZ$50K cost basis, FIF rules apply (FDR method most common — 5% of opening MV × your marginal rate). Below that threshold, distributions are taxed as ordinary income. US Treasury distributions are interest income, not qualified dividends, so the 15% US withholding rate may not apply — confirm with your broker's tax statements.
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Higher-yield equity income alternative (covered-call strategy).
NZ ETFs by TER
Lowest-cost NZX-listed funds (sorted by expense ratio).
FIF tax explained
When the FIF regime applies (NZ$50K threshold) and how to file.
PIE vs FIF — full guide
Side-by-side on which structure applies to which fund.
Compare NZ platforms
Hatch, Sharesies, Kernel, Stake, Interactive Brokers — fee + market access table.