---
title: "SCHD–SUB ETF mix offers $22K tax-efficient annual income"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287468195.md"
description: "A 50/50 allocation to SCHD and SUB can generate approximately $22,125 annually from a $750,000 portfolio. SUB offers federally tax-exempt income, while SCHD provides qualified dividends taxed at lower rates. The combined expense ratio is only 0.05%, resulting in annual fees of $375."
datetime: "2026-05-24T18:35:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287468195.md)
  - [en](https://longbridge.com/en/news/287468195.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287468195.md)
generator: "portal-rs"
---

# SCHD–SUB ETF mix offers $22K tax-efficient annual income

Simple income mix: A 50/50 allocation to SCHD and SUB generates roughly $22,125 annually on a $750,000 portfolio. Tax efficiency edge: SUB’s income is federally tax-exempt, while SCHD pays qualified dividends taxed at lower rates. Low cost structure: The blended expense ratio is just 0.05%, translating to $375 in annual fees.

### Related Stocks

- [SCHD.US](https://longbridge.com/en/quote/SCHD.US.md)
- [SUB.US](https://longbridge.com/en/quote/SUB.US.md)

## Related News & Research

- [Dividend stocks continue to climb as SCHD eyes ninth straight weekly gain](https://longbridge.com/en/news/296377281.md)
- [Dividend ETF Showdown: SCHD vs. VYMI vs. JEPI for Income Investors](https://longbridge.com/en/news/296602257.md)
- [This ETF Is the Most Important in the Market. You Probably Haven’t Heard of It.](https://longbridge.com/en/news/296026151.md)
- [Texas could face an $826 million SNAP tab as federal costs shift to states](https://longbridge.com/en/news/296030745.md)
- [Quadravest Preferred Split Share ETF declares CAD 0.0583 dividend](https://longbridge.com/en/news/296378937.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**