SCHZ ETF guide. Cost, yield, duration and bond mix in one place.
SCHZ tracks the Bloomberg U.S. Aggregate Bond Index and holds about 10,700 U.S. government, corporate and mortgage bonds. See what it costs to hold each year, what it pays, what sits inside and how it has returned.
One ticker.
What SCHZ is, in plain words.
SCHZ tracks the Bloomberg U.S. Aggregate Bond Index and holds about 10,700 U.S. government, corporate and mortgage bonds. The fund is managed by Schwab, trades on a U.S. exchange in U.S. dollars and launched on Jul 14, 2011. On Nov 9, 2026 it held $10.82B in net assets and its expense ratio was 0.03%. SCHZ is a very low cost fund that tracks the U.S. Aggregate Bond Index.
Investors search for SCHZ ETF because they want a clear answer to four practical questions. What does it cost to hold each year, what does it pay, what is actually inside, and how does it fit in a Roth IRA, a traditional IRA or 401(k), or a taxable account. This guide answers each one with dated figures from the issuer, and marks anything the issuer page does not publish as Not captured.
Key takeaways
- What it is. SCHZ tracks the Bloomberg U.S. Aggregate Bond Index and holds about 10,700 U.S. government, corporate and mortgage bonds.
- Cost. Expense ratio 0.03%, about $3 a year on $10,000.
- Income. SEC yield 5.0%, paid monthly.
- Risk. Calendar year returns ran from -13.1% to +7.2%.
It suits you if
- You want bonds in one fund to steady a portfolio of stocks.
- You want regular monthly income from interest.
- You accept price swings when interest rates move.
Look elsewhere if
- You want growth that keeps pace with stocks over decades.
- You need a guaranteed price on a fixed date, since a bond fund has no maturity date.
- You cannot accept a falling price when interest rates rise.
What SCHZ holds.
The 10 largest bonds inside SCHZ, as of Jun 30, 2026. Pick a number to see how much of the fund they make up.
The ten largest bonds and the mix by type are shown below from the issuer files. A bond fund holds thousands of bonds, so each one is a small share of the fund, and the largest lines are usually U.S. Treasury notes. Each weight is a share of the fund assets.
SCHZ yield and distributions.
SCHZ pays distributions every month, which makes it a monthly payer. The issuer page showed an SEC yield of 5.0% dated Sep 30, 2026. The most recent payment in the log was $0.0859 per share with an ex-date of Nov 2, 2026.
A yield is a snapshot, not a promise. The payment moves each period with the interest the fund receives, and some years include capital gains or return of capital that do not repeat. Read the year by year table below before building a plan around a single month. If you reinvest distributions, the payment still counts as income for tax purposes in a taxable account.
Recent distributions per share
Total distribution per share is shown on each bar. A tinted bar includes a reinvested year end amount.
Income estimate at the current yield
Uses the 5.0% yield dated Sep 30, 2026. Actual payments move each period.
Every payment, and the year by year record.
The ex-date is the cut-off, so you must hold shares before it to receive that payment. Amounts are per share in U.S. dollars from the issuer page.
Payment log
| Ex-date | Payable | Cash | Total |
|---|---|---|---|
| Nov 2, 2026 | — | $0.08590 | $0.08590 |
| Oct 1, 2026 | — | $0.08210 | $0.08210 |
| Sep 1, 2026 | — | $0.07660 | $0.07660 |
| Aug 3, 2026 | — | $0.08800 | $0.08800 |
| Jul 1, 2026 | — | $0.08000 | $0.08000 |
| Jun 1, 2026 | — | $0.08090 | $0.08090 |
| May 1, 2026 | — | $0.07870 | $0.07870 |
| Apr 1, 2026 | — | $0.07850 | $0.07850 |
| Mar 2, 2026 | — | $0.07720 | $0.07720 |
| Feb 2, 2026 | — | $0.08500 | $0.08500 |
| Dec 19, 2025 | — | $0.07700 | $0.07700 |
| Dec 1, 2025 | — | $0.07350 | $0.07350 |
The issuer reports the tax character of each payout after year end. Use the Form 1099-DIV from your broker for your own return.
What SCHZ costs to hold each year.
The expense ratio of 0.03% means the fund keeps about $3 a year for every $10,000 you hold. That cost is taken out of the fund price in small daily amounts, so you never see a bill, but it lowers your return every year. Over ten years on a flat $10,000 the expense ratio adds up to roughly $30, before any growth.
Two other costs sit outside the expense ratio. Trading commissions depend on your brokerage, and most large U.S. brokerages now charge nothing to buy ETFs. The bid and ask spread is a small cost you pay each time you trade, and for the largest funds it is usually tiny.
Expense ratio cost at common amounts
| Amount held | Per month | Per year | Over 10 years, flat | Hypothetical 2.00% fund, per year |
|---|---|---|---|---|
| $1,000 | $0.02 | $0.30 | $3 | $20 |
| $5,000 | $0.12 | $1.50 | $15 | $100 |
| $10,000 | $0.25 | $3.00 | $30 | $200 |
| $25,000 | $0.62 | $7.50 | $75 | $500 |
| $50,000 | $1.25 | $15.00 | $150 | $1,000 |
| $100,000 | $2.50 | $30.00 | $300 | $2,000 |
| $250,000 | $6.25 | $75.00 | $750 | $5,000 |
Flat estimates at the current expense ratio with no growth and no change in fee. Trading commissions depend on your brokerage and are not included. The 2.00% fund is a hypothetical used for scale.
Where the cost shows up
- Not as a bill. The share price and returns are already lower by the expense ratio.
- Trading cost shows up as the bid and ask spread each time you buy or sell, and as a commission if your broker charges one.
- In a taxable account, interest is reported on Form 1099-DIV and taxed in the year it is paid.
Expense ratio cost calculator
Flat estimate at an expense ratio of 0.03% with no growth and no change in fee. It shows scale only, not a forecast.
How SCHZ has returned.
Calendar year returns from the issuer ran from -13.09% in 2022 to +7.19% in 2025. Those figures are NAV total returns, which include fees and assume distributions are reinvested. A single weak year can happen in a bond fund when interest rates rise, and the point of the record is to show the range rather than to predict the next year.
Returns over longer periods hide the path. A fund can end a decade well ahead and still have lost a fifth of its value along the way. Check your own tolerance for a decline before you choose the weight, and remember that past performance does not guarantee future results.
Annualised NAV returns from the issuer, as of Sep 30, 2026. They include fees.
Past performance does not guarantee future results. Gaps are shown as Not captured because the issuer page did not publish that period.
Calendar year returns
NAV total return including reinvested distributions.
What $10,000 became, 2022 to 2025
Linking the calendar year returns above, with distributions reinvested.
An illustration of past figures, not a forecast. It ignores taxes and trading costs.
Growth of $10,000, year by year
SCHZ fund facts in one place.
Every figure comes from the issuer for the date shown. A line reads Not captured when it is not published on the pages we use.
What kinds of bonds it holds.
Bond type exposure
What the ride can look like.
SCHZ can lose value, and the calendar year record shows the range so far.
- Interest rate risk. When interest rates rise, bond prices fall. The longer the duration of the fund, the larger the fall.
- Credit risk. A company or borrower can fail to pay what it owes, which lowers the value of its bonds.
- Inflation risk. Rising prices reduce what the interest income can buy.
- Income risk. The monthly payment moves with interest rates and is not guaranteed.
- No maturity date. A bond fund keeps buying new bonds, so unlike a single bond it never returns a set amount on a set date.
How investors use SCHZ.
SCHZ is most often used as the bond part of a portfolio, next to stock funds. An investor who owns it is choosing steadier price moves and regular income, in return for lower long run growth than stocks.
Many investors set a split between stocks and bonds that suits their age and goals, and rebalance now and then. How much to hold in bonds is a choice worth checking against your own situation.
Before buying SCHZ, check four things on the issuer page. First, confirm the expense ratio matches the figure on this page, since fees can change when an issuer cuts costs. Second, confirm the fund is eligible for the account you plan to use. Third, read the latest tax breakdown if you hold it in a taxable account. Fourth, look at the bid and ask spread on the day you trade, since a wide spread is a cost that the expense ratio does not show.
Several comparable funds exist, with expense ratios of BND at 0.03%, AGG at 0.03%, IUSB at 0.06%, BNDX at 0.07%, so weigh cost together with what each fund holds, how it pays and the account you use.
No single fund is right for everyone, and this guide describes the product rather than recommending it. The figures come from the issuer and are dated. Distribution amounts, yields and holdings change, and past returns do not predict future returns. For a decision with large amounts of money, read the prospectus and the shareholder reports, and consider speaking with a licensed adviser about your own situation.
SCHZ against similar funds.
The same fund type from other issuers. Open a comparison for holdings overlap and returns.
| Fund | Issuer | Expense ratio | Net assets | Trailing yield |
|---|---|---|---|---|
| SCHZ (this fund) | Schwab | 0.03% | $10.82B | 5.0% |
| BND | Vanguard | 0.03% | $167.76B | 5.02% |
| AGG | iShares | 0.03% | $139.20B | 4.98% |
| IUSB | iShares | 0.06% | $50.47B | 5.21% |
| BNDX | Vanguard | 0.07% | $85.43B | 3.9% |
| VGIT | Vanguard | 0.03% | $41.51B | 4.9% |
SCHZ is part of the Bond ETFs category on this site, grouped here with BND, AGG, IUSB. Each comparison page lines up two funds on cost, holdings overlap, yield and returns, so you can see what separates them.
Where SCHZ fits.
Qualified withdrawals from a Roth IRA are tax free, so interest and gains build without a yearly tax bill and the expense ratio is the main drag you carry. SCHZ is an ordinary exchange traded fund, so most brokerages let you hold it in a Roth IRA.
Tax is deferred until you withdraw, and withdrawals are taxed as ordinary income. A 401(k) offers only the funds on its menu, so check whether SCHZ or a similar fund is in your plan.
Interest from bonds is taxed as ordinary income in a taxable account, at your regular rate, and is reported on Form 1099-DIV. Gains and losses are taxed when you sell shares. In a Roth IRA or traditional IRA there is no yearly tax on the interest. Your broker reports the amounts on Form 1099-DIV after year end, and those figures are what count on your return. ETFs also tend to pass out few capital gains because of how shares are created and redeemed.
General education, not tax advice. Rules change, so confirm with the issuer tax documents or an adviser.
Buying SCHZ in five steps.
- Pick the account. Roth IRA, traditional IRA, 401(k) or taxable. Most brokerages let IRAs hold ETFs like this one.
- Search the ticker. Type SCHZ in your brokerage and choose the U.S. listing, priced in U.S. dollars.
- Use a limit order. It sets the most you will pay and avoids surprises at the open.
- Check the cost. Most large U.S. brokerages charge no commission on ETFs, and some charge a small fee per trade.
- Set a routine. Add money on a schedule and decide whether to reinvest distributions.
Terms used on this page.
Where to go next from SCHZ.
Every SCHZ link in one place. Start with the category, then the head to head comparisons, then the guides for other funds and the tools.
CategoryBond ETFsEvery fund in this category, with a comparison page for every pair.Open the category →SCHZ comparison pages 5
Guides for similar funds
More U.S. fund guides
Calculators for SCHZ investors
Other ETF categories
Guides and research
Common questions about SCHZ.
What is SCHZ?
SCHZ tracks the Bloomberg U.S. Aggregate Bond Index and holds about 10,700 U.S. government, corporate and mortgage bonds. It is managed by Schwab, trades on a U.S. exchange in U.S. dollars and launched on Jul 14, 2011.
What is the expense ratio of SCHZ?
The expense ratio of SCHZ on the issuer page is 0.03%, or about $3 a year per $10,000 invested.
What is the SCHZ yield?
The issuer page showed an SEC yield of 5.0% on Sep 30, 2026 for SCHZ. Yields change, so check the issuer page for the current figure.
How often does SCHZ pay interest?
SCHZ pays distributions every month. The latest payment in the log was $0.0859 per share.
What does SCHZ hold?
SCHZ holds 10,721 positions. Its largest positions are U.S. Treasury note 4.13%, Feb 15, 2036, U.S. Treasury note 4.63%, Feb 15, 2035, U.S. Treasury note 4.25%, Aug 15, 2035.
Can I hold SCHZ in a Roth IRA or 401(k)?
Yes for IRAs. SCHZ is an ordinary exchange traded fund, so most brokerages let you hold it in a Roth IRA or a traditional IRA. Whether it is available in a 401(k) depends on the funds your plan offers.
How has SCHZ performed?
Calendar year NAV returns ran from -13.09% in 2022 to +7.19% in 2025. Returns include fees. Past performance does not guarantee future results.
SCHZ or BND, what is the difference?
The two funds do a similar job and differ in cost, issuer and holdings. SCHZ has an expense ratio of 0.03% and BND has an expense ratio of 0.03%. Open the BND vs SCHZ comparison for holdings overlap, yield and returns side by side.
How is SCHZ taxed in a taxable account?
The monthly payout is mostly interest, which is taxed as ordinary income in a taxable account and reported on Form 1099-DIV. Gains and losses are taxed when you sell shares.
Source, Schwab fund page. All figures are dated as shown. This guide is for education and is not personal advice or an offer to sell.