SCHP ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
The Schwab U.S. TIPS ETF is a low-cost inflation-hedge bond product that diversifies across the full maturity range of Treasury Inflation-Protected Securities. It trades under the ticker SCHP, and its differences in expense ratio, monthly distributions, and duration versus the short-term STIP and the full-maturity TIP are the key criteria for choosing among them.
SubscribeWhat Is the Schwab U.S. TIPS ETF?
It is an inflation-hedge bond ETF that tracks the full maturity range of US Treasury Inflation-Protected Securities (TIPS). It follows the Bloomberg US Treasury Inflation-Linked Bond Index and holds a broad range of TIPS, whose principal adjusts with inflation.
It suits bond and asset-allocation investors who want to defend against the erosion of real purchasing power caused by inflation.
It is a passively managed (index-tracking) ETF run by Schwab.
How Does the Schwab U.S. TIPS ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Bloomberg US Treasury Inflation-Linked Bond Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Monthly |
| Distribution Frequency | Monthly distributions |
| Issuer | Schwab |
| Total Expense Ratio | 0.03% |
The fund holds Treasury Inflation-Protected Securities issued by the US Treasury across the full maturity range, weighted by market capitalization. Because principal adjusts in line with consumer prices, it offers stronger protection of real value than nominal Treasuries during inflationary periods, and credit risk is effectively limited by the US government guarantee.
- Full-curve TIPS exposure spanning the entire maturity range
- An expense ratio that is low relative to the category average
Schwab U.S. TIPS ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $16.5B, and the total expense ratio is 0.03% per year.
Compared with STIP and TIP in the same category, it differs in expense ratio and duration exposure, and this ETF is structured to cover the full maturity range broadly.
Schwab U.S. TIPS ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangePrices of inflation-protected Treasuries move with changes in real yields and inflation expectations, and like nominal Treasuries, they tend to come under pressure when interest rates rise. Recent trends have been driven by inflation data and monetary policy expectations.
When inflation concerns come to the fore, money tends to flow in on demand for protection of real purchasing power, while in disinflationary periods funds sometimes shift toward nominal bonds. It continues to draw steady demand as the inflation-hedge component of asset-allocation portfolios.
Schwab U.S. TIPS ETF Pros and Cons
Its strengths are a low expense ratio and inflation protection backed by US government credit, while its weakness is price risk from changes in real yields.
💪 Key Strengths
⚠️ Points to Watch
Schwab U.S. TIPS ETF Alternatives and Related Products
Direct substitutes shown in the table include TIP, which holds the same full-maturity TIPS but differs in expense ratio; STIP, which concentrates on the short end to reduce interest rate sensitivity; and variants such as TDTT, which targets a set duration. Beyond the table, Vanguard's VTIP, which offers the same full-curve TIPS exposure at a lower expense ratio, is also worth considering, and for broadening the inflation hedge beyond bonds, DBC, which invests in a basket of commodities, is another point of comparison.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 STIP | iShares 0-5 Year TIPS Bond ETF | $100.84 | -0.1% | $16.9B | 0.03% | 4.69% | -2.6% |
 TIP | iShares TIPS Bond ETF | $106.31 | +0.1% | $14.6B | 0.18% | 4.43% | -5.0% |
 TDTT | Northern Trust iBoxx 3-Year Target Duration TIPS ETF | $23.52 | -0.0% | $2.5B | 0.18% | 4.86% | -3.5% |
 LTPZ | PIMCO 15+ Year U.S. TIPS Index ETF | $47.46 | +0.5% | $1.1B | 0.20% | 6.24% | -12.9% |
 DFIP | Dimensional Inflation-Protected Securities ETF | $39.82 | +0.0% | $1.1B | 0.11% | 5.32% | -6.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 BNO | United States Brent Oil Fund LP | 0.19% | $70.07 | -1.3% | $0.0M | - | - |
 USLM | United States Lime & Minerals Inc | 0.19% | $109.65 | -1.8% | $3.1B | 23.5 | 0.22% |
Schwab U.S. TIPS ETF Investor Checkpoints
Here are the points to review before investing in SCHP. It is a core inflation-hedge bond asset, but it is best to check the expense ratio, duration, direction of real yields, and currency exposure together in advance, in line with your holding purpose and period.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over long-term holding | Low |
| 📏 Duration | Interest rate sensitivity of full-maturity exposure | Higher than short-term funds |
| 📈 Real Yields | Direction of real yields and the effect on prices | Needs checking |
| 💱 Exchange Rate | Impact on returns when converted to won | No currency hedge |
Rising real yields and the duration burden are the main drivers of short-term price swings. In deflationary periods the benefit of principal adjustment weakens, so you should review your inflation-hedge goal and holding period together.
It is a standard choice as a core bond asset for hedging inflation. To lower interest rate sensitivity, compare it with the short-term TIPS ETF STIP, and if you want a lower expense ratio, with VTIP as well, then choose according to your holding period.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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