SCHP vs. HFSI

Last updated Jun 14, 2026

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

Performance

SCHP vs. HFSI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. TIPS ETF (SCHP) and Hartford Strategic Income ETF (HFSI). 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 SCHP at 1.42% and HFSI at 1.42%.

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%

HFSI

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

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

SCHP vs. HFSI - Yearly Performance Comparison

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

Correlation

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

Return for Risk

SCHP vs. HFSI — Risk / Return Rank

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

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

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

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.

SCHP vs. HFSI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. TIPS ETF (SCHP) and Hartford Strategic Income ETF (HFSI). 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.

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

SCHP vs. HFSI - Sharpe Ratio Comparison

The current SCHP Sharpe Ratio is 1.44, which is lower than the HFSI Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of SCHP and HFSI, 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

SCHP vs. HFSI - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

SCHP vs. HFSI - Volatility Comparison

The current volatility for Schwab U.S. TIPS ETF (SCHP) is 1.02%, while Hartford Strategic Income ETF (HFSI) has a volatility of 1.23%. This indicates that SCHP experiences smaller price fluctuations and is considered to be less risky than HFSI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

SCHP vs. HFSI - Expense Ratio Comparison

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

Dividends

SCHP vs. HFSI - Dividend Comparison

SCHP's dividend yield for the trailing twelve months is around 3.99%, less than HFSI's 5.54% 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 SCHP and HFSI in my portfolio?

SCHP and HFSI 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, SCHP or HFSI?

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

Which ETF is better, SCHP or HFSI?

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, SCHP or HFSI?

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, SCHP or HFSI?

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

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

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

What is the main difference between SCHP and HFSI?

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

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.