Average Daily Volume
3.48M
Fund Overview
The Schwab U.S. TIPS ETF (SCHP) is an exchange-traded fund that seeks to track the performance of the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) Index. This index includes U.S. Treasury inflation-protected securities (TIPS) with maturities of at least one year. SCHP provides investors with exposure to inflation-protected bonds, which are designed to help protect against inflation by adjusting the principal value of the securities based on changes in the Consumer Price Index (CPI). The fund is passively managed and aims to deliver returns that closely correspond to the performance of its underlying index. SCHP is a cost-effective option for investors looking to hedge against inflation while maintaining a low expense ratio.
- Asset Class
-
Bond
- Industry
-
Treasury Bonds
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- N/A
- Currency Hedged
-
No
- Portfolio Turnover
-
24 %
- Dividend Date
-
Why Invest in the SCHP ETF?
Potential Benefits
- Provides inflation protection by investing in Treasury Inflation-Protected Securities (TIPS).
- Low expense ratio compared to many other TIPS ETFs, making it cost-effective for investors.
- Passively managed, aiming to closely track its benchmark index with minimal tracking error.
- Diversifies a portfolio by adding an asset class that performs well during inflationary periods.
Potential Risks
- Interest rate risk: Rising interest rates can negatively impact the value of TIPS.
- Inflation expectations: If inflation is lower than expected, TIPS may underperform nominal bonds.
- Liquidity risk: TIPS may be less liquid than nominal Treasury securities in certain market conditions.
- Market risk: Like all fixed-income securities, TIPS are subject to market fluctuations.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+0.6%
|
+1.2%
|
-1.3%
|
+1.1%
|
+0.2%
|
-0.5%
|
-0.7%
|
+0.1%
|
-2.7%
|
+0.2%
|
-
|
-
|
| 2025 |
+1.2%
|
+2.1%
|
+0.7%
|
+0.1%
|
-0.7%
|
+1.0%
|
+0.1%
|
+1.6%
|
+0.4%
|
+0.3%
|
+0.2%
|
-0.6%
|
| 2024 |
+0.3%
|
-1.1%
|
+0.7%
|
-1.6%
|
+1.8%
|
+0.7%
|
+1.8%
|
+0.8%
|
+1.5%
|
-1.8%
|
+0.5%
|
-1.5%
|
| 2023 |
+2.0%
|
-1.3%
|
+2.9%
|
0.0%
|
-1.2%
|
-0.2%
|
0.0%
|
-0.8%
|
-1.9%
|
-0.7%
|
+2.8%
|
+2.5%
|
| 2022 |
-2.0%
|
+0.8%
|
-1.9%
|
-2.2%
|
-0.9%
|
-3.1%
|
+4.4%
|
-2.7%
|
-6.8%
|
+1.4%
|
+1.8%
|
-1.2%
|
| 2021 |
+0.3%
|
-1.6%
|
-0.2%
|
+1.4%
|
+1.1%
|
+0.6%
|
+2.7%
|
-0.1%
|
-0.7%
|
+1.1%
|
+0.8%
|
+0.4%
|
| 2020 |
+2.1%
|
+0.9%
|
-1.5%
|
+2.7%
|
+0.5%
|
+1.1%
|
+2.2%
|
+0.9%
|
-0.3%
|
-0.7%
|
+1.1%
|
+1.3%
|
| 2019 |
+1.5%
|
-0.2%
|
+1.9%
|
+0.3%
|
+1.6%
|
+0.8%
|
+0.4%
|
+2.2%
|
-1.1%
|
-0.1%
|
+0.2%
|
+0.5%
|
| 2018 |
-0.9%
|
-0.9%
|
+0.8%
|
0.0%
|
+0.3%
|
+0.6%
|
-0.5%
|
+0.7%
|
-1.0%
|
-1.5%
|
+0.4%
|
+0.6%
|
| 2017 |
+0.9%
|
+0.4%
|
0.0%
|
+0.4%
|
+0.1%
|
-0.9%
|
+0.5%
|
+1.0%
|
-0.7%
|
+0.3%
|
+0.1%
|
+1.0%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
No holdings data available.
Related ETFs: SCHP vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SCHP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) Index, which includes all U.S. TIPS with at least one year remaining to maturity. The index is market-cap weighted, meaning larger issuances of TIPS have a greater impact on the fund's performance. SCHP holds physical TIPS bonds rather than using derivatives, providing direct exposure to these inflation-protected securities. The fund is rebalanced monthly to align with index changes, ensuring it maintains accurate representation of the TIPS market.
Frequently Asked Questions
How does SCHP protect against inflation?
SCHP holds Treasury Inflation-Protected Securities (TIPS) whose principal value adjusts based on changes in the Consumer Price Index (CPI), providing built-in inflation protection.
What is the difference between SCHP and regular Treasury bond ETFs?
Unlike regular Treasury ETFs that pay fixed interest, SCHP holds TIPS whose principal and interest payments adjust with inflation, offering protection against rising prices.
Does SCHP pay monthly dividends?
Yes, SCHP typically pays monthly dividends that reflect the interest payments from its underlying TIPS holdings, though payment amounts may vary with inflation adjustments.
Is SCHP a good investment during periods of low inflation?
During low inflation periods, SCHP may underperform nominal Treasury bonds, as the inflation adjustment feature provides less benefit. However, it still offers the safety of U.S. government debt.
Industry Overview
The Schwab U.S. TIPS ETF (SCHP) is part of the fixed-income ETF market, specifically focusing on inflation-protected securities. TIPS are U.S. Treasury bonds designed to protect investors from inflation by adjusting the principal value based on changes in the CPI. This makes SCHP particularly relevant in environments where inflation is a concern. Investors often use TIPS ETFs like SCHP to hedge against rising prices while maintaining exposure to U.S. government debt. The fund is suitable for conservative investors seeking stability and inflation protection within their fixed-income allocation.
Alternative Comparison
Compared to other TIPS ETFs like iShares TIP and Vanguard VTIP, SCHP stands out for its ultra-low expense ratio, making it one of the most cost-efficient ways to access inflation-protected bonds. While TIP offers broader maturity exposure and VTIP focuses on shorter-duration TIPS, SCHP provides a balanced approach across the TIPS yield curve. Unlike some actively managed TIPS funds that may use derivatives or sector rotation strategies, SCHP maintains a straightforward, index-tracking approach.
Issuer Overview
Charles Schwab Investment Management, the issuer of SCHP, is a well-established asset manager known for offering low-cost, passively managed ETFs. Schwab's ETFs are designed to provide broad market exposure at competitive expense ratios, making them popular among cost-conscious investors. The firm emphasizes transparency, liquidity, and investor-friendly structures across its ETF lineup.
Conclusion
The Schwab U.S. TIPS ETF (SCHP) offers investors a low-cost, efficient way to gain exposure to inflation-protected U.S. Treasury securities. With its passive management style and focus on tracking the Bloomberg TIPS Index, SCHP provides transparent inflation hedging for portfolios. While subject to interest rate risks common to all fixed income investments, its inflation adjustment feature makes it particularly valuable during periods of rising prices. For investors seeking core inflation protection within their fixed income allocation, SCHP represents a compelling option.
Boost Your Returns with SectorSurfer
Award-winning investment strategy automation