At a glance
SCHZ charges 0.03% a year, below the 0.09% average of the 7 funds most like it (the cheapest of 8). It has $10.60B in assets, the 2nd largest of that group; it paid 4.32% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.1% with distributions reinvested, 4th of those 8 funds; over three years it returned +5.2% a year. At its worst it fell 10.3% in the 2020 crash (S&P 500: 33.7%) and 14.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 36 months after the lows. Its ten largest positions make up 3.7% of the fund, out of 12,326 in all.
The short version
Schwab U.S. Aggregate Bond ETF (SCHZ) is an index fund that tracks the Bloomberg US Aggregate Bond Index. The index is a broad mix of investment-grade (higher-rated) U.S. Treasuries, mortgage-backed securities and corporate bonds. Its 0.03% annual expense ratio matches AGG, BBAG and SPAB and is below the 0.09% average of similar funds. It pays income monthly, but its 13% loss in 2022 shows that high-quality bonds can still lose value when interest rates rise.
Price history
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SCHZ -1.1% 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 | |
|---|---|---|---|---|---|---|
| SCHZ official prospectus, to Dec 31, 2025 | — | +7.19% | — | -0.44% | +1.93% | — |
| Bloomberg US Aggregate Bond Index index, same period | — | +7.30% | — | -0.36% | +2.01% | — |
| SCHZ price data to Oct 27, 2026 | -0.8% | -1.1% | +5.2% | -0.3% | +1.4% | +1.7% |
- Over the year to Oct 27, 2026, SCHZ returned -1.1%, 4th of 8 among similar funds.
- Its 5-year annualized return was -0.3% and its 10-year +1.4%.
- In the 2020 COVID crash it fell 10.3% and regained its old high 2.1 months after the low.
- Its worst full calendar year was 2022 (-13.2%); its best was 2019 (+8.7%).
- The deepest fall in its price history was 18.8% (Aug 4, 2020 to Oct 24, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.8% | — |
| 2025 | +7.3% | +7.19% |
| 2024 | +1.2% | +1.26% |
| 2023 | +5.6% | +5.53% |
| 2022 | -13.2% | -13.09% |
| 2021 | -1.7% | -1.74% |
| 2020 | +7.5% | +7.50% |
| 2019 | +8.7% | +8.64% |
| 2018 | -0.0% | -0.09% |
| 2017 | +3.5% | +3.46% |
| 2016 | +2.2% | +2.49% |
| 2015 | -0.1% | — |
| 2014 | +5.2% | — |
| 2013 | -3.0% | — |
| 2012 | +2.3% | — |
| 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 2.6% over that stretch · deepest drop along the way 10.3%, back to its old high 2.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.5% over that stretch · deepest drop along the way 14.6%, back to its old high 36.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7400 | |
| 2025 | $0.9500 | +6.1% |
| 2024 | $0.8950 | +17.8% |
| 2023 | $0.7600 | +26.7% |
| 2022 | $0.6000 | +3.4% |
| 2021 | $0.5800 | -14.7% |
| 2020 | $0.6800 | -9.3% |
| 2019 | $0.7500 | +6.1% |
| 2018 | $0.7067 | +12.2% |
| 2017 | $0.6300 | +9.6% |
| 2016 | $0.5750 | +42.2% |
| 2015 | $0.4045 | +52.4% |
| 2014 | $0.2654 | +5.0% |
| 2013 | $0.2527 | -5.2% |
| 2012 | $0.2667 |
What's inside
As of Jun 30, 2026, the fund held 12,326 securities; the ten largest made up 3.74% of assets.
| Holding | Weight | |
|---|---|---|
| United States Treasury Bonds and notes | 0.39% | |
| United States Treasury Bonds and notes | 0.39% | |
| United States Treasury Bonds and notes | 0.39% | |
| United States Treasury Bonds and notes | 0.37% | |
| United States Treasury Bonds and notes | 0.37% | |
| United States Treasury Bonds and notes | 0.37% | |
| United States Treasury Bonds and notes | 0.36% | |
| United States Treasury Bonds and notes | 0.36% | |
| United States Treasury Bonds and notes | 0.36% | |
| United States Treasury Bonds and notes | 0.36% | |
| United States Treasury Bonds and notes | 0.35% | |
| United States Treasury Bonds and notes | 0.33% | |
| United States Treasury Bonds and notes | 0.32% | |
| United States Treasury Bonds and notes | 0.32% | |
| United States Treasury Bonds and notes | 0.31% |
By country
United States 92.28%XX 1.34%Canada 1.08%United Kingdom 0.79%Japan 0.52%By issuer
US Treasury 45.72%Companies 24.3%US government-sponsored enterprises 18.83%US government agencies 5.63%Foreign governments 2.98%The bonds mature in 12.5 years on average (weighted by size), with an average coupon of 3.81%.
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 $619.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.08%, +0.34%, +0.22%.
How it works
SCHZ follows the Bloomberg US Aggregate Bond Index. The index covers investment-grade, taxable U.S. bonds: Treasuries, government-related and corporate bonds, and mortgage-backed and asset-backed securities. To qualify, a bond must pay a fixed rate, be issued in U.S. dollars and have at least one year left to maturity. The index leaves out tax-exempt municipal bonds, inflation-linked bonds, floating-rate issues and convertibles. Each bond is weighted by its market value, and the index is updated on the last business day of each month.
The index has too many bonds to buy them all. So Charles Schwab Investment Management uses sampling: it buys a smaller set chosen to match the index's interest-rate sensitivity, maturities, sectors and credit quality. At least 90% of net assets go into bonds in the index. Up to 10% can go into Treasuries, money market funds or futures. As of June 30, 2026, the fund held 12,326 positions. The index's duration, a measure of rate sensitivity, was 5.92 years as of December 31, 2025. Roughly, a one-point rise in rates would cut prices by about 6%.
About 24% of the index is agency mortgage pools from Ginnie Mae, Fannie Mae and Freddie Mac. The fund often gets this exposure through "to-be-announced" contracts. It rolls these contracts forward instead of taking delivery of the mortgage pools. Until the contracts settle, it holds short-term Treasuries and money market funds. This adds trading, and portfolio turnover was 37%. Higher turnover can raise costs and taxable gains.
What it really costs
- SCHZ charges 0.03% a year, versus an average of 0.09% 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 |
|---|---|---|---|---|
| SCHZ | $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
It gives broad, low-cost exposure to the whole investment-grade U.S. bond market in a single fund.
SCHZ could serve as the main bond holding in a retirement portfolio. It owns about 12,300 investment-grade bond positions for 0.03% a year. In the SEC's standard example, that comes to $39 over 10 years on a $10,000 investment. Its trailing 12-month yield was 4.32% as of October 27, 2026, and it pays income monthly.
Bonds don't always cushion a portfolio. The fund launched in 2011, so it has no record from 2008. In March 2020 it fell 10.3% in under two weeks but recovered by May 22, 2020. In 2022 it lost 13.09%, its worst calendar year, and its 14.6% drop that year took about 36 months to recover. Its deepest decline, 18.8% from August 2020 to October 2022, had still not been fully made up as of October 27, 2026. Selling shares for spending during a stretch like that locks in losses. Past results don't predict the future, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting one fund that covers the whole investment-grade U.S. bond market, at 0.03% a year versus a 0.09% average for similar funds.
- Retirees seeking monthly income from Treasuries, mortgage-backed and corporate bonds; the trailing 12-month yield was 4.32% as of October 27, 2026.
- Stock-heavy portfolios wanting a holding that moves little with stocks: its one-year beta (sensitivity to stock swings) was 0.12 as of October 27, 2026.
Look elsewhere if
- Investors seeking inflation protection, because the Bloomberg US Aggregate Bond Index leaves out inflation-linked bonds.
- Savers who may need the money within a few years: the fund's 14.6% drop in 2022 took about 36 months to recover.
- Investors in high tax brackets who want tax-free income, because the index excludes tax-exempt municipal bonds.
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 |
|---|---|---|---|---|---|
| SCHZ this fund | 12.5 yrs | 0.03% | $10.60B | -1.1% | +5.2% |
| BBAG JPMorgan BetaBuilders U.S. Aggregate Bond E… | 12.5 yrs | 0.03% | $1.03B | -0.8% | +5.3% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| SPAB SPDR Portfolio Aggregate Bond ETF | 12.7 yrs | 0.03% | $9.63B | -1.2% | +5.2% |
| EAGG iShares ESG Aware US Aggregate Bond ETF | 12.7 yrs | 0.1% | $5.09B | -1.2% | +5.1% |
| AGZD WisdomTree Interest Rate Hedged U.S. Aggreg… | 12.6 yrs | 0.23% | $144.5M | +4.3% | +5.8% |
| GCOR Goldman Sachs Access U.S. Aggregate Bond ETF | 12.7 yrs | 0.08% | $833.9M | -1.4% | +5.1% |
| NUBD Nuveen ESG U.S. Aggregate Bond ETF | 12.3 yrs | 0.16% | $463.2M | -1.3% | +5.1% |
Questions investors ask
Is SCHZ good for retirement income?
It can provide steady monthly income from a broad mix of high-quality bonds. SCHZ paid $0.97 per share over the 12 months to October 27, 2026, a trailing yield of 4.32%, and charges 0.03% a year. The trade-off is price risk. It lost 13.09% in 2022, and its 2022 drop took about 36 months to recover. Income also changes as interest rates change, so the payments are not fixed.
What's the difference between SCHZ and AGG?
There is very little difference in what they own or what they cost. Both hold broad portfolios of investment-grade U.S. bonds with nearly the same maturities and issuer mix, and both charge 0.03%. The main gap is size. AGG had about $138.3 billion in net assets as of August 31, 2026, while SCHZ had about $10.6 billion as of June 30, 2026. One-year returns were close: -0.7% for AGG through October 29, 2026, and -1.1% for SCHZ through October 27, 2026.
Does SCHZ pay monthly dividends?
Yes. SCHZ pays distributions every month, mostly from the interest its bonds earn. Over the 12 months to October 27, 2026, it paid $0.97 per share, a trailing yield of 4.32%. The amount changes from month to month because it depends on bond interest, which moves with interest rates. The index excludes tax-exempt municipal bonds, so payouts held in a taxable account are generally taxable.
Why did SCHZ lose money in 2022?
Bond prices fall when interest rates rise, because older bonds paying lower rates become less attractive. SCHZ returned -13.09% in 2022, its worst calendar year. That included a -5.85% quarter ending March 31, 2022. From January 3 to October 11, 2022, it fell 14.6%, and it did not regain that peak until October 14, 2025. Its index had a duration of 5.92 years as of December 31, 2025, which means its price reacts noticeably to changes in interest rates.
What does SCHZ hold?
SCHZ held 12,326 positions as of June 30, 2026, so no single bond matters much. Its 10 largest positions, all U.S. Treasury notes, made up just 3.74% of assets. By issuer, U.S. Treasuries were 45.7%, corporate bonds 24.3%, government-sponsored enterprises such as Fannie Mae and Freddie Mac 18.8%, and government agencies 5.6%. Mortgage-backed securities made up 25.1% of assets, and 92.3% of holdings were from U.S. issuers.