SCHD — Schwab US Dividend Equity ETF
Charles Schwab · Expense Ratio: 0.06% · Dividend · 9bp below the Dividend category average of 0.15%
Key Facts
| Ticker | SCHD |
| Full Name | Schwab US Dividend Equity ETF |
| Provider | Charles Schwab |
| Expense Ratio | 0.06% |
| Category | Dividend |
| Assets Under Management | $65B |
| Inception Year | 2011 (15 years ago) |
| Number of Holdings | 100 |
| Dividend Yield | ~3.3% (high) |
| Top Holdings | CVX, KO, PEP, MRK |
What Is SCHD?
SCHD, managed by Charles Schwab, launched in 2011, is a major ETF with deep liquidity and tight bid-ask spreads in the Dividend category. Dividend-focused ETF investing in companies with consistent and growing dividend payouts. With $65B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
SCHD in a FIRE Portfolio
With its focus on dividend-paying stocks, this fund can generate retirement income for FIRE investors, reducing the need to sell holdings during market downturns.
At a ~3.3% yield, a $1M position in SCHD would generate approximately $33,000/year in dividend income. For FIRE investors, dividend income reduces the need to sell holdings during market downturns — a strategy known as "living off dividends."
Cost Analysis: How SCHD's 0.06% Fee Affects Your FIRE Timeline
At 0.06%, SCHD is very cost-effective. Annual fees on a $100K investment: $60. Over 30 years, the fee drag shaves approximately 0.4% off your total returns. For a $1M FIRE portfolio, that's about $6,000 in cumulative fees — noticeable but reasonable for most investors.
Dividend Income Potential
With a high dividend yield of approximately 3.3%, here's what SCHD could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $3,300/year | $275/month |
| $250,000 | $8,250/year | $688/month |
| $500,000 | $16,500/year | $1,375/month |
| $1,000,000 | $33,000/year | $2,750/month |
Frequently Asked Questions About SCHD
What is the expense ratio for SCHD?
SCHD has an expense ratio of 0.06%. This is very cost-effective — on a $100K portfolio, annual fees are $60. 9bp below the dividend category average of 0.15%.
Is SCHD good for a FIRE portfolio?
With its focus on dividend-paying stocks, this fund can generate retirement income for FIRE investors, reducing the need to sell holdings during market downturns. Its 0.06% expense ratio is very cost-effective for the Dividend category.
How does the 0.06% fee affect long-term returns?
At 0.06%, you'll pay $60/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.4%. Use the embedded calculator below to model the exact impact on your specific portfolio.
Similar ETFs in Dividend
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- VYM — Vanguard High Dividend Yield ETF (0.06% · Income Generator)
- DGRO — iShares Core Dividend Growth ETF (0.08% · Income Generator)
- DGRW — WisdomTree US Quality Dividend Growth ETF (0.28% · Income Generator)
- HDV — iShares Core High Dividend ETF (0.08% · Income Generator)
- SPYD — SPDR Portfolio S&P 500 High Dividend ETF (0.07% · Income Generator)
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- DVY — iShares Select Dividend ETF (0.38% · Income Generator)