At a glance
SCHJ charges 0.03% a year, below the 0.13% average of the 7 funds most like it (the cheapest of 8). It has $870.2M in assets, the 8th largest of that group; it paid 4.54% of its price in distributions over the past 12 months, monthly. Over the past year it returned +1.3% with distributions reinvested, 5th of those 8 funds; over three years it returned +5.5% a year. At its worst it fell 13.6% in the 2020 crash (S&P 500: 33.7%) and 7.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 15 months after the lows. Its ten largest positions make up 1.5% of the fund, out of 3,255 in all.
The short version
Schwab 1-5 Year Corporate Bond ETF (SCHJ) is an index fund that holds short-term, investment-grade US dollar corporate bonds from the Bloomberg US 1-5 Year Corporate Bond Index. Its 0.03% expense ratio is the same as Vanguard Short-Term Corporate Bond ETF (VCSH) and well below the 0.13% average of similar funds. The trade-off is size: it had about $870 million in net assets as of June 30, 2026, far less than VCSH or iShares' IGSB.
Price history
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SCHJ +1.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SCHJ official prospectus, to Dec 31, 2025 | — | +6.77% | — | +2.20% | — | +2.70% |
| Bloomberg US Aggregate Bond Index index, same period | — | +7.30% | — | -0.36% | — | +0.84% |
| Bloomberg US 1-5 Year Corporate Bond Index index, same period | — | +6.81% | — | +2.26% | — | +2.77% |
| SCHJ price data to Oct 27, 2026 | +0.7% | +1.3% | +5.5% | +2.4% | — | +2.5% |
- Over the year to Oct 27, 2026, SCHJ returned +1.3%, 5th of 8 among similar funds.
- Its 5-year annualized return was +2.4%.
- In the 2020 COVID crash it fell 13.6% and regained its old high 2.3 months after the low.
- Its worst full calendar year was 2022 (-5.7%); its best was 2025 (+6.8%).
- The deepest fall in its price history was 13.6% (Mar 5, 2020 to Mar 19, 2020), recovered by May 27, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.7% | — |
| 2025 | +6.8% | +6.77% |
| 2024 | +4.9% | +4.95% |
| 2023 | +6.4% | +6.14% |
| 2022 | -5.7% | -5.65% |
| 2021 | -0.7% | -0.64% |
| 2020 | +5.3% | +5.31% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 7.3% over that stretch · deepest drop along the way 13.6%, back to its old high 2.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 7.6% over that stretch · deepest drop along the way 7.8%, back to its old high 14.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.8300 | |
| 2025 | $1.0900 | +12.4% |
| 2024 | $0.9700 | +33.8% |
| 2023 | $0.7250 | +85.9% |
| 2022 | $0.3900 | +69.6% |
| 2021 | $0.2300 | -64.9% |
| 2020 | $0.6550 |
What's inside
As of Jun 30, 2026, the fund held 3,255 securities; the ten largest made up 1.51% of assets.
| Holding | Weight | |
|---|---|---|
| T-MOBILE USA INC Bonds and notes | 0.22% | |
| BANK OF AMERICA CORP Bonds and notes | 0.18% | |
| ABBVIE INC Bonds and notes | 0.15% | |
| CVS HEALTH CORP Bonds and notes | 0.15% | |
| DEUTSCHE TELEKOM INT FIN Bonds and notes | 0.14% | |
| AMAZON.COM INC Bonds and notes | 0.14% | |
| GOLDMAN SACHS GROUP INC Bonds and notes | 0.14% | |
| SALESFORCE INC Bonds and notes | 0.13% | |
| AMAZON.COM INC Bonds and notes | 0.13% | |
| BOEING CO Bonds and notes | 0.13% | |
| VERIZON COMMUNICATIONS Bonds and notes | 0.13% | |
| WELLS FARGO & COMPANY Bonds and notes | 0.13% | |
| BANK OF AMERICA CORP Bonds and notes | 0.13% | |
| WELLS FARGO & COMPANY Bonds and notes | 0.12% | |
| META PLATFORMS INC Bonds and notes | 0.12% |
By country
United States 81.45%United Kingdom 4.38%Canada 3.57%Japan 2.64%Australia 1.12%By issuer
Companies 93.89%Other 4.22%The bonds mature in 3.5 years on average (weighted by size), with an average coupon of 4.22%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $137.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.41%, +0.29%, +0.13%.
What it really costs
- SCHJ charges 0.03% a year, versus an average of 0.13% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SCHJ | $3 | $10 | $17 | $39 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its short maturities and investment-grade issuers have kept price swings small, though it has still had real losses.
SCHJ could serve as a steadier bond holding that sits between cash and longer-term bonds, and it pays income every month. Its trailing yield (income paid over the past year divided by the share price) was 4.54% as of October 27, 2026. In the SEC's standard example, $10,000 invested costs $3 in the first year. The fund launched in October 2019, so it has no record from 2008. In the 2020 COVID crash it fell 13.6% between March 5 and March 19, 2020, and was back to its earlier high by May 27. Rising rates in 2022 did slower damage: a 7.8% drop through September 27, 2022, and about 15 months to recover, by December 21, 2023. Its worst calendar year was 2022, at -5.65%. Anyone who had to sell during those stretches would have taken a loss. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Cost-focused investors: its 0.03% expense ratio matches VCSH and is well below the 0.13% average of similar funds.
- Retirees who want monthly income from short-term investment-grade corporate bonds; the trailing yield was 4.54% as of October 27, 2026.
- Investors who want less rate sensitivity than core bond funds; the index's duration was 2.57 years as of December 31, 2025.
Look elsewhere if
- Anyone who can't accept drops: it fell 13.6% in March 2020 and took nearly 15 months to recover from its 2022 slide.
- Investors who prefer the largest bond ETFs: SCHJ had about $870 million in net assets, a fraction of VCSH or IGSB.
- Those who want Treasury-level safety: it owns corporate debt from issuers such as T-Mobile, Bank of America and Boeing, which carries credit risk.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SCHJ this fund | 3.5 yrs | 0.03% | $870.2M | +1.3% | +5.5% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| IGSB iShares 1-5 Year Investment Grade Corporate… | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| SPSB SPDR Portfolio Short Term Corporate Bond ETF | 2.4 yrs | 0.04% | $10.63B | +2.3% | +5.1% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| SPIB SPDR Portfolio Intermediate Term Corporate … | 5.6 yrs | 0.04% | $11.57B | 0.0% | +6.1% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
Questions investors ask
Is SCHJ good for retirement income?
It can be a defensive source of income, but it isn't risk-free. SCHJ pays monthly, and its trailing yield was 4.54% as of October 27, 2026. Its bonds mature in under five years, so its price moves less than longer-term bond funds. Even so, it lost 5.65% in 2022 and briefly fell 13.6% in March 2020. Costs are low: in the SEC's standard example, $10,000 invested costs $3 in the first year.
What's the difference between SCHJ and VCSH?
They are very similar in cost and holdings but very different in size. Both charge 0.03% and hold short-term corporate bonds with an average of 3.5 years to maturity. Vanguard's VCSH had about $51.7 billion in net assets as of August 31, 2026. SCHJ had roughly $870 million as of June 30, 2026. Over one year, VCSH returned 1.9% through October 30, 2026, and SCHJ returned 1.3% through October 27, so the periods differ slightly.
Does SCHJ pay monthly dividends?
Yes. SCHJ pays out monthly, using interest from the corporate bonds it holds. Over the year to October 27, 2026, it paid about $1.10 per share, a trailing yield of 4.54%. The portfolio's average coupon (the bonds' stated interest rate) was 4.22% as of June 30, 2026. Payments change as bonds mature and are replaced at whatever rates are available then, so income can fall if interest rates drop.
How much did SCHJ lose in 2022?
SCHJ lost 5.65% in 2022, its worst calendar year since it launched in 2019. Rising interest rates pushed bond prices down. Its worst quarter was the first quarter of 2022, at -3.72%. From its peak on January 4 to its low on September 27, 2022, it fell 7.8%, and it didn't regain that peak until December 21, 2023. Over the five years to December 31, 2025, it returned 2.20% a year, compared with -0.36% for the Bloomberg US Aggregate Bond Index.
What does SCHJ hold?
SCHJ holds investment-grade corporate bonds that mature in one to five years. As of June 30, 2026, it owned 3,255 issues. The largest were bonds from T-Mobile USA, Bank of America, AbbVie, CVS Health and Deutsche Telekom, and the biggest single position was just 0.22% of assets. About 81% was in US issuers, followed by the UK, Canada and Japan. The average maturity was 3.5 years and the average coupon was 4.22%.