HFSI vs. SCHP

Last updated Jun 14, 2026

HFSI (Hartford Strategic Income ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - HFSI is a Multisector Bonds fund actively managed by Hartford, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). HFSI is actively managed, while SCHP is passively managed. Over the past 3 years, HFSI returned 8.28%/yr vs 4.14%/yr for SCHP. A 0.71 correlation means they provide meaningful diversification when combined. HFSI charges 0.49%/yr vs 0.03%/yr for SCHP.

Performance

HFSI vs. SCHP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hartford Strategic Income ETF (HFSI) and Schwab U.S. TIPS ETF (SCHP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

As of year-to-date, both investments have demonstrated similar returns, with HFSI at 1.42% and SCHP at 1.42%.

HFSI

• 1D: -0.01%
• 1M: 1.12%
• YTD: 1.42%
• 6M: 1.84%
• 1Y: 7.94%
• 3Y*: 8.28%
• 5Y*: —
• 10Y*: —

SCHP

• 1D: 0.04%
• 1M: 0.31%
• YTD: 1.42%
• 6M: 1.48%
• 1Y: 4.83%
• 3Y*: 4.14%
• 5Y*: 1.06%
• 10Y*: 2.60%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HFSI vs. SCHP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HFSI Hartford Strategic Income ETF	1.42%	9.56%	7.91%	9.91%	-12.60%	-1.24%
SCHP Schwab U.S. TIPS ETF	1.42%	6.76%	1.95%	3.91%	-12.02%	1.60%

Correlation

The correlation between HFSI and SCHP is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.80
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	0.71

The correlation between HFSI and SCHP has been stable across timeframes, ranging from 0.71 to 0.80 - a consistent structural relationship.

Return for Risk

HFSI vs. SCHP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HFSI

HFSI Risk / Return Rank: 72
HFSI Sharpe Ratio Rank: 77
HFSI Sortino Ratio Rank: 82
HFSI Omega Ratio Rank: 81
HFSI Calmar Ratio Rank: 57
HFSI Martin Ratio Rank: 63

SCHP

SCHP Risk / Return Rank: 50
SCHP Sharpe Ratio Rank: 47
SCHP Sortino Ratio Rank: 51
SCHP Omega Ratio Rank: 45
SCHP Calmar Ratio Rank: 56
SCHP Martin Ratio Rank: 50

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HFSI vs. SCHP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hartford Strategic Income ETF (HFSI) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	HFSI	SCHP	Difference
Sharpe ratio: Return per unit of total volatility	2.15	1.44	+0.71
Sortino ratio: Return per unit of downside risk	3.19	2.19	+1.00
Omega ratio: Gain probability vs. loss probability	1.41	1.25	+0.16
Calmar ratio: Return relative to maximum drawdown	2.49	2.45	+0.04
Martin ratio: Return relative to average drawdown	9.96	7.41	+2.56

HFSI vs. SCHP - Sharpe Ratio Comparison

The current HFSI Sharpe Ratio is 2.15, which is higher than the SCHP Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of HFSI and SCHP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HFSI vs. SCHP - Drawdown Comparison

The maximum HFSI drawdown since its inception was -19.34%, which is greater than SCHP's maximum drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for HFSI and SCHP.

Drawdown Indicators

	HFSI	SCHP	Difference
Max Drawdown Largest peak-to-trough decline	-19.34%	-14.26%	-5.08%
Max Drawdown (1Y) Largest decline over 1 year	-3.06%	-1.93%	-1.13%
Max Drawdown (3Y) Largest decline over 3 years	-5.11%	-4.48%	-0.63%
Max Drawdown (5Y) Largest decline over 5 years	—	-14.26%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-14.26%	—
Current Drawdown Current decline from peak	-0.16%	-0.44%	+0.28%
Average Drawdown Average peak-to-trough decline	-5.69%	-3.93%	-1.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.76%	0.64%	+0.12%

Volatility

HFSI vs. SCHP - Volatility Comparison

Hartford Strategic Income ETF (HFSI) has a higher volatility of 1.23% compared to Schwab U.S. TIPS ETF (SCHP) at 1.02%. This indicates that HFSI'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.

Volatility by Period

	HFSI	SCHP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	1.02%	+0.21%
Volatility (6M) Calculated over the trailing 6-month period	2.59%	2.24%	+0.35%
Volatility (1Y) Calculated over the trailing 1-year period	3.56%	3.30%	+0.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.96%	6.12%	-1.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.96%	5.59%	-0.63%

HFSI vs. SCHP - Expense Ratio Comparison

HFSI has a 0.49% expense ratio, which is higher than SCHP's 0.03% expense ratio.

Dividends

HFSI vs. SCHP - Dividend Comparison

HFSI's dividend yield for the trailing twelve months is around 5.54%, more than SCHP's 3.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HFSI Hartford Strategic Income ETF	5.54%	5.67%	6.51%	5.77%	4.87%	0.71%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHP Schwab U.S. TIPS ETF	3.99%	4.06%	2.99%	3.02%	7.19%	4.39%	1.11%	2.02%	2.26%	1.90%	1.38%	0.28%

Frequently Asked Questions

Can I hold both HFSI and SCHP in my portfolio?

HFSI and SCHP have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HFSI or SCHP?

HFSI has higher volatility (1.23%) compared to SCHP (1.02%). In terms of maximum drawdown, HFSI dropped -19.34% vs SCHP's -14.26%.

Which ETF is better, HFSI or SCHP?

On 3-year performance, HFSI leads with 8.28% vs 4.14% for SCHP. On fees, SCHP is cheaper at 0.03% per year. On volatility, SCHP has been the lower-risk option at 1.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HFSI or SCHP?

Over the 3-year period, HFSI has performed better with a 8.28% return vs 4.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HFSI or SCHP?

SCHP is cheaper with a 0.03% expense ratio, compared with 0.49% for HFSI.

Which ETF pays a higher dividend yield, HFSI or SCHP?

HFSI has the higher dividend yield at 5.54%, compared with 3.99% for SCHP.

What is the main difference between HFSI and SCHP?

HFSI is categorized as Multisector Bonds, while SCHP is Inflation-Protected Bonds. They also come from different issuers: Hartford and Charles Schwab. Their fees differ too: 0.49% for HFSI and 0.03% for SCHP.

Which has better risk-adjusted returns?

HFSI currently has the higher Sharpe Ratio (2.15 vs 1.44), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.