Generated August 8, 2026.
Overview
IDV and SCHY are both international dividend-focused ETFs tracking Dow Jones indexes, but they diverge sharply on yield and portfolio construction. IDV tracks a 100-stock EPAC (Europe, Pacific, Asia, Canada) index with a 9.88% distribution rate, while SCHY tracks a narrower 100-name global ex-US dividend index yielding 4.24%. The gap reflects different screening criteria: IDV emphasizes absolute dividend yield across a broader geographic footprint, whereas SCHY appears to prioritize dividend quality and sustainability at a lower payout level.
How they differ
The biggest difference is yield: IDV distributes nearly 2.3 times the percentage that SCHY does, a spread that suggests IDV is capturing higher-yielding names or applying a less restrictive dividend-quality screen. Second, IDV charges 0.51% in expenses versus SCHY's 0.14%—a 37 basis-point gap that compounds over time, though IDV's vastly larger asset base ($8.47B vs. $2.52B) suggests institutional backing. Third, IDV carries a modestly lower beta (0.74 vs. 0.81), implying its high-yield holdings may be somewhat less volatile than SCHY's dividend universe, though both lag the broad market. SCHY is also a newer fund, having launched in April 2021 versus IDV's June 2007 inception, meaning it has less historical track record through varied market cycles.
Who each is best for
IDV: Fits investors prioritizing current income from international dividend stocks and willing to accept higher turnover, expense drag, and potential NAV pressure from sustained high distributions in exchange for elevated quarterly payout frequency.
SCHY: Designed for investors seeking exposure to international dividend-payers with a lower expense ratio and more conservative distribution yield, trading some current income for reduced fee friction and potentially more durable dividend-growth characteristics.
Key risks to know
- High distribution yield and NAV erosion: IDV's 9.88% distribution rate significantly exceeds typical international equity total return, raising the risk that distributions include substantial return-of-capital and gradual NAV decline over time.
- Index concentration and single-index risk: Both funds track a single Dow Jones dividend index; overlap in holdings is likely high, meaning they carry similar sector or geographic concentration risk that a single index determines.
- Fee drag at lower total returns: SCHY's 0.14% expense ratio advantage becomes moot if international equities deliver weak total returns; IDV's higher expenses ($4.3M annually on $8.47B AUM) compound underperformance in flat or down markets.
- Currency and emerging-market exposure: Both hold significant Asia and emerging-market positions; currency fluctuations and geopolitical risk in these regions can amplify volatility beyond what beta suggests, particularly if dividend-paying stocks in those regions underperform.
- Lower relative beta does not guarantee downside protection: IDV's 0.74 beta may indicate defensive characteristics, but in sharp market drawdowns, dividend-focused international stocks have historically lagged, making the beta advantage less reliable than it appears.
Bottom line
IDV appeals to investors seeking maximum current income from international dividend stocks and can absorb the combination of higher fees and potential NAV erosion that sustained 10%-plus yields often bring. SCHY delivers a leaner cost structure and a lower payout, better suited to investors skeptical that IDV's yield is sustainable or who prefer to let international dividend growth compound with minimal fee drag. Neither guarantees future returns; past performance in dividend selection does not predict which index will outperform going forward.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
