If you have seen one ETF listed with three different yields, nobody is necessarily wrong. They are measuring different things.
Updated October 31, 2026 · fund data as of October 30, 2026
| Measure | How it works | Best for |
|---|---|---|
| Trailing 12-month | Last year's distributions divided by today's price | Comparing what funds actually paid. This is the figure we show. |
| Distribution rate | Latest payment annualized, divided by price | Seeing the current run-rate of a monthly payer |
| 30-day SEC yield | A standardized estimate from a fund's net investment income | Bond funds, where it best estimates future income |
SCHD paid $1.06 per share over the past 12 months and closed at $35.78, which gives a 2.95% trailing yield. If the share price rises and the payout stays the same, the yield falls. The income has not changed; the price has.
The SEC formula counts dividends and interest but largely excludes option income. So a covered call fund can show a very low SEC yield while paying a high distribution. For those funds use the trailing yield, and look at total return.
Year-end capital-gains payouts count toward trailing yield even though they may not repeat. DIVO is an example: its December 2025 payment was about five times its usual monthly amount. Check the recent payments table on each fund page.
Yield rises when a price falls. A very high yield can mean the market expects the payout to be cut. Always ask where the income comes from: company dividends, interest, option premium, or your own capital.
Trailing yield to compare stock and options funds, and SEC yield for bond funds.
They may use different measures, dates, or prices. A difference of a few tenths of a percent is normal.
For a diversified stock ETF, about 2–4% is typical. Anything far higher usually relies on options, leverage, credit risk, or return of capital.