Schwab U.S. Aggregate Bond ETF (SCHZ) is an exchange-traded fund that seeks to track the total return of the Bloomberg U.S. Aggregate Bond Index, providing broad exposure to the U.S. investment-grade, taxable bond market. The fund holds more than 11,000 securities, including U.S. government and agency bonds, mortgage-backed securities, corporate bonds, commercial mortgage-backed securities, foreign government securities, taxable municipal bonds and asset-backed obligations; its portfolio composition features approximately 45% U.S. government and agencies, 24% mortgage-backed securities and 24% corporate bonds. SCHZ offers investors a low-cost option with an expense ratio of 0.03%, monthly dividend distributions yielding around 4%, a weighted average maturity of 8 years, effective duration of 5.9 years and SEC yield of approximately 4.1%.
Launched on July 14, 2011 and managed by Charles Schwab Investment Management, Inc., a division of The Charles Schwab Corporation headquartered in Westlake, Texas, the ETF operates primarily in the U.S. fixed-income market, serving as a core holding for diversified portfolios seeking income and stability from investment-grade bonds.
In recent developments, SCHZ underwent a 2-for-1 forward share split effective October 10, 2024, increasing shares outstanding and adjusting the net asset value per share while preserving total shareholder value; this was part of a broader initiative by Schwab Asset Management involving 20 ETFs. Schwab also reduced fees on certain fixed-income ETFs, pricing its entire lineup including SCHZ at three basis points to enhance competitiveness. The fund maintains assets under management exceeding $9 billion, with ongoing portfolio turnover of around 37% to closely replicate the benchmark.