NEW YORK, September 1, 2026, 07:50 EDT – A surge of 24% in SCHD has pushed its yield to a level 1.6 percentage points below that of Treasuries.
- SCHD closed after hours at $34.98, marking a 0.93% drop from its 52-week peak.
- The trailing distribution yield of 3.13% was 1.62 percentage points lower than the yield on the 10-year Treasury.
- Total return for the year to date was 24.03% as of July, with net assets reported at $112.34 billion on August 31.
The Schwab U.S. Dividend Equity ETF NYSEARCA:SCHD closed Monday close to an all-time high, following a 24% gain so far this year. Its most recent confirmed after-hours quote stood at $34.98, 33 cents under its 52-week peak Google Finance.
The surge has altered the outlook for income investments. SCHD’s trailing distribution yield of 3.13% is now 1.62 percentage points below the yield on the 10-year Treasury.
As a result, investors rely on both dividend increases and appreciation in shares to close the difference. The fund’s expense ratio of 0.06% creates minimal drag, yet it does not counterbalance rate risk.
SCHD’s latest verified trading range
U.S. dollars per share. As of .
Source: Google Finance. Prices are the latest verified session figures, not a live feed.
Shares ended Monday’s session at $34.89, slipping 0.03%. During regular trading, the price fluctuated between $34.81 and $34.96 before rising after hours.
Yields gave a clearer indication. The 10-year Treasury yield climbed to 4.75% on August 31, rising from 4.73% on August 28 U.S. Treasury.
Oil prices and geopolitical concerns drove the yield up. On Monday, the S&P 500 slipped 0.3%, and the Dow declined 0.7% Associated Press.
Cash yield has overtaken SCHD’s income yield
Percent; different yield conventions and as-of dates are shown explicitly.
July 31
August 28
August 31
Sources: Schwab Asset Management and U.S. Treasury.
SCHD delivered a total return that compensated for equity risk. Year-to-date through July, its market-price return was 24.03%, compared with 14.34% for Morningstar’s large-value category Schwab Asset Management.
SCHD led its large-value category through July
Year-to-date total return as of July 31, 2026.
Source: Schwab Asset Management. Returns assume reinvested distributions; past performance is not predictive.
As of August 31, the fund managed $112.34 billion distributed across 103 holdings. The most recent sector data shows health care, consumer staples and energy made up 55.17% of the portfolio.
The index requires a continuous decade of cash dividend payments. Following this, qualifying stocks are ranked by dividend yield, five-year dividend growth rate, return on equity, and free cash flow to debt ratio S&P Dow Jones Indices.
The benchmark marked its 15th anniversary on Tuesday. According to S&P, a simulated $100 investment at launch, with dividends reinvested, would have increased to $628.69 by June 30, 2026.
Risks: Rising bond yields may weigh on dividend-stock valuations. Any dividend reductions or underperformance in health care, staples, and energy sectors would affect SCHD more than others.
The next test is straightforward: for taking equity risk below the Treasury yield to be justified, portfolio payouts need to increase quickly enough.
