Average Daily Volume
4.18M
Fund Overview
The Schwab Short-Term U.S. Treasury ETF (SCHO) is designed to track the performance of the Bloomberg U.S. Treasury 1-3 Year Index. This ETF provides investors with exposure to short-term U.S. Treasury securities, which are considered among the safest investments due to their backing by the U.S. government. SCHO is ideal for investors seeking capital preservation, liquidity, and a modest yield with minimal credit risk. The fund's short duration makes it less sensitive to interest rate changes compared to longer-term bond funds, offering stability in volatile markets.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 3.98 %
- Currency Hedged
-
No
- Portfolio Turnover
-
67 %
- Dividend Date
-
Why Invest in the SCHO ETF?
Potential Benefits
- Low credit risk due to investment in U.S. Treasury securities.
- Short duration reduces sensitivity to interest rate fluctuations.
- High liquidity, making it easy to buy and sell shares.
- Competitive expense ratio compared to similar short-term Treasury ETFs.
- Provides a stable income stream with minimal volatility.
- Ideal for conservative investors or as a cash-equivalent holding.
Potential Risks
- Lower yield compared to longer-term or higher-risk bonds.
- Still subject to interest rate risk, albeit less than longer-duration funds.
- Inflation risk may erode real returns over time.
- Limited capital appreciation potential compared to equities or longer-term bonds.
- Opportunity cost if interest rates rise significantly.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.2%
|
+0.5%
|
-0.4%
|
+0.2%
|
+0.1%
|
+0.1%
|
+0.2%
|
+0.2%
|
-0.6%
|
+0.3%
|
-
|
-
|
| 2025 |
+0.7%
|
+0.7%
|
+0.4%
|
+0.8%
|
-0.2%
|
+0.6%
|
0.0%
|
+0.9%
|
+0.2%
|
+0.4%
|
+0.4%
|
+0.4%
|
| 2024 |
+0.4%
|
-0.4%
|
+0.3%
|
-0.4%
|
+0.7%
|
+0.6%
|
+1.1%
|
+0.9%
|
+0.8%
|
-0.6%
|
+0.3%
|
-0.1%
|
| 2023 |
+0.7%
|
-0.7%
|
+1.7%
|
+0.3%
|
-0.4%
|
-0.5%
|
+0.3%
|
+0.4%
|
-0.1%
|
+0.3%
|
+1.1%
|
+1.2%
|
| 2022 |
-0.7%
|
-0.4%
|
-1.4%
|
-0.5%
|
+0.6%
|
-0.6%
|
+0.5%
|
-0.8%
|
-1.2%
|
-0.1%
|
+0.6%
|
+0.2%
|
| 2021 |
0.0%
|
-0.1%
|
0.0%
|
0.0%
|
+0.1%
|
-0.2%
|
+0.2%
|
0.0%
|
-0.1%
|
-0.3%
|
-0.1%
|
-0.2%
|
| 2020 |
+0.6%
|
+0.9%
|
+1.3%
|
+0.1%
|
+0.1%
|
0.0%
|
+0.1%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
0.0%
|
| 2019 |
+0.2%
|
+0.1%
|
+0.6%
|
+0.2%
|
+0.8%
|
+0.5%
|
-0.1%
|
+0.8%
|
-0.1%
|
+0.3%
|
-0.1%
|
+0.2%
|
| 2018 |
-0.3%
|
0.0%
|
+0.1%
|
-0.2%
|
+0.3%
|
0.0%
|
0.0%
|
+0.3%
|
-0.1%
|
+0.1%
|
+0.4%
|
+0.8%
|
| 2017 |
+0.1%
|
+0.1%
|
+0.1%
|
+0.1%
|
+0.1%
|
-0.1%
|
+0.2%
|
+0.2%
|
-0.2%
|
-0.1%
|
-0.2%
|
0.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: SCHO vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SCHO seeks to track the Bloomberg U.S. Treasury 1-3 Year Index, which includes U.S. Treasury securities with remaining maturities between 1 and 3 years. The index is market-cap weighted, meaning securities with larger outstanding debt amounts have a greater influence on the index's performance. The fund primarily holds physical Treasury securities rather than derivatives, ensuring direct exposure to the underlying assets. SCHO is passively managed and rebalances periodically to align with the index composition, typically as bonds mature or new issuances are added.
Frequently Asked Questions
What is the average duration of SCHO?
SCHO has an average duration of approximately 1-3 years, making it less sensitive to interest rate changes than longer-term bond funds.
Does SCHO pay dividends?
Yes, SCHO pays monthly dividends derived from the interest income of its Treasury holdings.
Is SCHO a good investment during rising interest rates?
Yes, SCHO's short duration makes it relatively resilient to rising interest rates compared to longer-term bond funds.
How does SCHO compare to a money market fund?
SCHO offers slightly higher yield potential than money market funds but with marginally more interest rate risk due to its longer maturity profile.
Industry Overview
The Schwab Short-Term U.S. Treasury ETF (SCHO) is part of the short-term fixed-income ETF category, which focuses on U.S. Treasury securities with maturities of 1-3 years. This segment is favored by investors seeking safety, liquidity, and stability, particularly during periods of market uncertainty or rising interest rates. Short-term Treasuries are often used as a defensive allocation in portfolios or as a temporary holding for cash management. SCHO provides a cost-effective way to gain exposure to this asset class with the convenience of an ETF structure.
Alternative Comparison
Compared to its peers like SHY (iShares 1-3 Year Treasury Bond ETF) and VGSH (Vanguard Short-Term Treasury ETF), SCHO offers a competitive expense ratio, making it an attractive option for cost-conscious investors. Unlike some actively managed short-term bond funds, SCHO provides pure exposure to Treasuries without credit or sector risk. While BIL (SPDR Bloomberg 1-3 Month T-Bill ETF) focuses on even shorter maturities, SCHO strikes a balance between yield and interest rate sensitivity.
Issuer Overview
SCHO is issued by Charles Schwab Investment Management, a subsidiary of The Charles Schwab Corporation. Schwab is a well-established financial services firm known for its low-cost investment products and client-focused approach. The issuer has a strong reputation for transparency, reliability, and innovation in the ETF space.
Conclusion
SCHO is a solid choice for investors seeking a low-risk, liquid, and cost-effective way to invest in short-term U.S. Treasury securities. Its passive management strategy, combined with Schwab's reputation, makes it a reliable option for conservative portfolios or as a temporary cash alternative. While it may not offer high yields, its stability and safety are key advantages in uncertain markets.
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