BAB vs. SCHP
Compare and contrast key facts about Invesco Taxable Municipal Bond ETF (BAB) and Schwab U.S. TIPS ETF (SCHP).
BAB and SCHP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BAB is a passively managed fund by Invesco that tracks the performance of the BofA Merrill Lynch Build America Bond Index. It was launched on Nov 17, 2009. SCHP is a passively managed fund by Charles Schwab that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Aug 5, 2010. Both BAB and SCHP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BAB or SCHP.
Key characteristics
| BAB | SCHP | |
|---|---|---|
| YTD Return | 2.88% | 3.29% |
| 1Y Return | 10.98% | 7.51% |
| 3Y Return (Ann) | -3.65% | -2.07% |
| 5Y Return (Ann) | 0.05% | 2.31% |
| 10Y Return (Ann) | 2.72% | 2.24% |
| Sharpe Ratio | 1.18 | 1.30 |
| Sortino Ratio | 1.76 | 1.92 |
| Omega Ratio | 1.21 | 1.23 |
| Calmar Ratio | 0.47 | 0.52 |
| Martin Ratio | 4.30 | 6.24 |
| Ulcer Index | 2.20% | 1.05% |
| Daily Std Dev | 7.99% | 5.06% |
| Max Drawdown | -27.80% | -14.26% |
| Current Drawdown | -11.39% | -6.09% |
Correlation
The correlation between BAB and SCHP is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
BAB vs. SCHP - Performance Comparison
In the year-to-date period, BAB achieves a 2.88% return, which is significantly lower than SCHP's 3.29% return. Over the past 10 years, BAB has outperformed SCHP with an annualized return of 2.72%, while SCHP has yielded a comparatively lower 2.24% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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BAB vs. SCHP - Expense Ratio Comparison
BAB has a 0.28% expense ratio, which is higher than SCHP's 0.05% expense ratio.
Risk-Adjusted Performance
BAB vs. SCHP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and Schwab U.S. TIPS ETF (SCHP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
BAB vs. SCHP - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 3.84%, more than SCHP's 2.81% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 3.84% | 3.66% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.27% | 4.71% | 4.59% | 5.19% |
SCHP Schwab U.S. TIPS ETF | 2.81% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.63% | 1.90% | 1.38% | 0.28% | 1.30% | 0.67% |
Drawdowns
BAB vs. SCHP - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, which is greater than SCHP's maximum drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for BAB and SCHP. For additional features, visit the drawdowns tool.
Volatility
BAB vs. SCHP - Volatility Comparison
Invesco Taxable Municipal Bond ETF (BAB) has a higher volatility of 1.88% compared to Schwab U.S. TIPS ETF (SCHP) at 1.16%. This indicates that BAB's price experiences larger fluctuations and is considered to be riskier than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.