Schwab U.S. TIPS ETF has lower fees compared to other similar products. SCHP has outperformed both peer TIPS funds and nominal Treasury ETFs since inception, driven by lower fees and inflation protection. Fiscal and monetary policy trends are likely to remain supportive of inflation, making TIPS exposure attractive for investors.
Blending TIPS with intermediate-term treasury bonds enhances risk-adjusted returns, offering a Sharpe ratio of 0.46, better than holding each asset class alone. When paired with equities, a 50/50 ITT/US portfolio yields the highest Sharpe ratio of 0.66, outperforming other combinations. SCHP is my preferred TIPS fund due to its low 0.03% expense ratio, diversified holdings, and high liquidity with $11.45B AUM.
The Schwab U.S. TIPS ETF (SCHP) owns a portfolio of Treasury Inflation-Protected Securities. With the Fed cutting interest rates while inflation remains above target, SCHP should continue to see dual tailwinds from higher principal adjustments and duration returns. Paradoxically, the key risk to monitor is inflation. If inflation surges, the Fed may have to restart rate hikes, which could lead to duration losses for the SCHP.
![]() SCHP 4 months ago | Other | $0.02 Per Share |
![]() SCHP 6 months ago Paid | Monthly | $0.11 Per Share |
![]() SCHP 7 months ago Paid | Monthly | $0.07 Per Share |
![]() SCHP 8 months ago Paid | Monthly | $0.03 Per Share |
![]() SCHP 9 months ago Paid | Monthly | $0.01 Per Share |
![]() SCHP 4 months ago | Other | $0.02 Per Share |
![]() SCHP 6 months ago Paid | Monthly | $0.11 Per Share |
![]() SCHP 7 months ago Paid | Monthly | $0.07 Per Share |
![]() SCHP 8 months ago Paid | Monthly | $0.03 Per Share |
![]() SCHP 9 months ago Paid | Monthly | $0.01 Per Share |
ARCA Exchange | US Country |
The company is focused on a highly specialized investment strategy that revolves around the niche of Treasury Inflation-Protected Securities (TIPS). By dedicating at least 90% of its net assets to securities included in its designated index, the fund provides investors with a targeted approach to inflation-protected investments. The index itself is comprised of all publicly issued U.S. TIPS that meet specific criteria: atleast one year remaining to maturity, investment grade rating, and a substantial outstanding face value of $500 million or more. This ensures that the investments within the fund are both secure and of significant scale. The company’s strategic focus on TIPS denominated in U.S. dollars, which are fixed-rate and non-convertible, positions it as a specialized player within the investment landscape, specifically catering to those seeking inflation protection in their portfolios.
The company's primary service revolves around investing in TIPS, which are designed to protect investors against inflation. These securities adjust in price to reflect inflation rates, ensuring that the investment's real value is maintained over time. By focusing on TIPS with at least one year remaining till maturity, rated investment grade, and with substantial outstanding face value, the fund aims to provide a reliable and inflation-resistant investment option.
Investors gain exposure to a specialized index that includes a broad range of TIPS, carefully selected based on maturity, rating, and outstanding face value criteria. This index represents a curated collection of inflation-protected securities, offering a diversified and strategic approach to hedge against inflation. The focused nature of the index ensures that all investments within the fund adhere to stringent standards of quality and relevance.