■ ETF · July 17, 2026
SCHY and IDVO: Two International Dividend ETFs Offering Higher Yields Than SCHD
SCHD's international counterpart SCHY yields 3.89% with similar quality screens, while IDVO offers a 5.94% distribution rate via covered calls. Both provide geographic diversification.
SCHY: SCHD's Global Counterpart
The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index, requiring companies to have at least 10 consecutive years of dividend payments and screening on free cash flow to total debt, return on equity, dividend yield, and five-year dividend growth. Its 30-day SEC yield is 3.35%, with a price-to-earnings ratio of 19.07. However, international equities offer cheaper valuations and higher yields.
The Schwab International Dividend Equity ETF (SCHY) applies the same quality screens to international stocks. With $2.3 billion in assets and a 0.08% expense ratio, SCHY tracks the Dow Jones International Dividend 100 Index. Its portfolio trades at 15.2 times earnings (versus 19.07 for SCHD) and has a 22.15% return on equity (versus 26.54%). The price-to-book ratio is 2.61, compared with 3.84 for SCHD. SCHY's 30-day SEC yield is 3.89%. One drawback: foreign withholding taxes on dividends. In taxable accounts, investors may recover some taxes via the foreign tax credit. Holding SCHY in a Roth IRA avoids the issue.
IDVO: Higher Income Through Covered Calls
The Amplify CWP International Enhanced Dividend Income ETF (IDVO) is actively managed, holding 30 to 50 American Depositary Receipts from the MSCI ACWI ex-U.S. universe. Selection criteria include earnings growth, free cash flow, dividend growth, return on equity, market capitalization, and management quality. The fund enhances income by writing covered calls on individual holdings, preserving more upside than index-wide strategies. IDVO's distribution rate is 5.94%, based on the most recent monthly distribution annualized. Over the three years ending June 30, 2026, IDVO compounded at 21.88% annually (with reinvested distributions), earning a 5-star Morningstar rating in its category.
What It Means for Income Investors
SCHY and IDVO offer higher yields than SCHD (3.89% and 5.94% vs. 3.35%) while providing international diversification. However, foreign withholding taxes and higher fees (IDVO's expense ratio is not specified but is likely above SCHY's 0.08%) can reduce net returns. For a balanced dividend portfolio, these ETFs can complement U.S.-focused holdings.
Reporting based on: 24/7 Wall St.. Figures verified against market data where available.