ETF turnover can reduce capital-gains distributions vs mutual funds.
SCHY’s ETF structure helps manage taxes by reducing capital-gains distributions versus many mutual-fund turnovers.
SCHY is highlighted for tax efficiency: turnover inside the ETF doesn’t automatically pass through as capital gains the way it can in traditional mutual funds. The key practical point is using SCHD/SCHY for steady dividend-growth screening while keeping short-run tax impact lower.