SCHP vs. PCY

Last updated Jun 9, 2026

SCHP (Schwab U.S. TIPS ETF) and PCY (Invesco Emerging Markets Sovereign Debt 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 PCY is a Emerging Markets Bonds fund tracking the DB Emerging Market USD Liquid Balanced Index. Both are passively managed. Over the past 10 years, SCHP returned 2.53%/yr vs 2.55%/yr for PCY. At a 0.37 correlation, their price movements are largely independent. SCHP charges 0.03%/yr vs 0.50%/yr for PCY.

Performance

SCHP vs. PCY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab U.S. TIPS ETF (SCHP) and Invesco Emerging Markets Sovereign Debt ETF (PCY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCHP achieves a 0.96% return, which is significantly lower than PCY's 1.26% return. Both investments have delivered pretty close results over the past 10 years, with SCHP having a 2.53% annualized return and PCY not far ahead at 2.55%.

SCHP

• 1D: -0.19%
• 1M: -0.89%
• YTD: 0.96%
• 6M: 0.95%
• 1Y: 4.80%
• 3Y*: 3.84%
• 5Y*: 1.02%
• 10Y*: 2.53%

PCY

• 1D: -0.33%
• 1M: -0.74%
• YTD: 1.26%
• 6M: 1.62%
• 1Y: 13.56%
• 3Y*: 10.81%
• 5Y*: 0.99%
• 10Y*: 2.55%

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

SCHP vs. PCY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCHP Schwab U.S. TIPS ETF	0.96%	6.76%	1.95%	3.91%	-12.02%	5.87%	10.86%	8.52%	-1.78%	3.02%
PCY Invesco Emerging Markets Sovereign Debt ETF	1.26%	16.31%	2.55%	18.48%	-24.47%	-4.30%	2.29%	17.66%	-6.16%	9.71%

Correlation

The correlation between SCHP and PCY is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Aug 5, 2010	0.37

Over the past year, SCHP and PCY have become more correlated (0.63) than their long-term average of 0.37, meaning their price movements have been converging.

SCHP vs. PCY - Sectors Allocation Comparison

Sectors	SCHP	PCY
Consumer Cyclical	100.0%	-
Financial Services	0.0%	0.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

SCHP vs. PCY — Risk / Return Rank

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

SCHP

SCHP Risk / Return Rank: 49
SCHP Sharpe Ratio Rank: 46
SCHP Sortino Ratio Rank: 50
SCHP Omega Ratio Rank: 45
SCHP Calmar Ratio Rank: 56
SCHP Martin Ratio Rank: 49

PCY

PCY Risk / Return Rank: 59
PCY Sharpe Ratio Rank: 61
PCY Sortino Ratio Rank: 62
PCY Omega Ratio Rank: 61
PCY Calmar Ratio Rank: 52
PCY Martin Ratio Rank: 58

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. PCY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. TIPS ETF (SCHP) and Invesco Emerging Markets Sovereign Debt ETF (PCY). 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.

	SCHP	PCY	Difference
Sharpe ratio: Return per unit of total volatility	1.47	1.83	-0.36
Sortino ratio: Return per unit of downside risk	2.23	2.61	-0.39
Omega ratio: Gain probability vs. loss probability	1.26	1.34	-0.08
Calmar ratio: Return relative to maximum drawdown	2.50	2.31	+0.19
Martin ratio: Return relative to average drawdown	7.59	9.34	-1.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCHP vs. PCY - Sharpe Ratio Comparison

The current SCHP Sharpe Ratio is 1.47, which is comparable to the PCY Sharpe Ratio of 1.83. The chart below compares the historical Sharpe Ratios of SCHP and PCY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCHP	PCY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.47	1.83	-0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.17	0.08	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.20	+0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.29	+0.21

Drawdowns

SCHP vs. PCY - Drawdown Comparison

The maximum SCHP drawdown since its inception was -14.26%, smaller than the maximum PCY drawdown of -49.13%. Use the drawdown chart below to compare losses from any high point for SCHP and PCY.

Drawdown Indicators

	SCHP	PCY	Difference
Max Drawdown Largest peak-to-trough decline	-14.26%	-49.13%	+34.87%
Max Drawdown (1Y) Largest decline over 1 year	-1.93%	-5.91%	+3.98%
Max Drawdown (3Y) Largest decline over 3 years	-4.48%	-11.52%	+7.04%
Max Drawdown (5Y) Largest decline over 5 years	-14.26%	-37.17%	+22.91%
Max Drawdown (10Y) Largest decline over 10 years	-14.26%	-37.78%	+23.52%
Current Drawdown Current decline from peak	-0.89%	-1.23%	+0.34%
Average Drawdown Average peak-to-trough decline	-3.93%	-6.97%	+3.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.63%	1.46%	-0.83%

Volatility

SCHP vs. PCY - Volatility Comparison

The current volatility for Schwab U.S. TIPS ETF (SCHP) is 1.00%, while Invesco Emerging Markets Sovereign Debt ETF (PCY) has a volatility of 2.20%. This indicates that SCHP experiences smaller price fluctuations and is considered to be less risky than PCY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCHP	PCY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.00%	2.20%	-1.20%
Volatility (6M) Calculated over the trailing 6-month period	2.24%	5.83%	-3.59%
Volatility (1Y) Calculated over the trailing 1-year period	3.29%	7.46%	-4.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.12%	13.17%	-7.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.59%	12.95%	-7.36%

SCHP vs. PCY - Expense Ratio Comparison

SCHP has a 0.03% expense ratio, which is lower than PCY's 0.50% expense ratio.

Dividends

SCHP vs. PCY - Dividend Comparison

SCHP's dividend yield for the trailing twelve months is around 4.01%, less than PCY's 5.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PCY Invesco Emerging Markets Sovereign Debt ETF	5.91%	5.93%	6.65%	6.48%	6.81%	4.80%	4.45%	4.78%	4.93%	4.80%	5.19%	5.46%
SCHP Schwab U.S. TIPS ETF	4.01%	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 PCY in my portfolio?

SCHP and PCY have a correlation of 0.63, 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 PCY?

PCY has higher volatility (2.20%) compared to SCHP (1.00%). In terms of maximum drawdown, SCHP dropped -14.26% vs PCY's -49.13%.

Which ETF is better, SCHP or PCY?

On 10-year performance, PCY leads with 2.55% vs 2.53% for SCHP. On fees, SCHP is cheaper at 0.03% per year. On volatility, SCHP has been the lower-risk option at 1.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SCHP or PCY?

Over the 10-year period, PCY has performed better with a 2.55% return vs 2.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SCHP or PCY?

SCHP is cheaper with a 0.03% expense ratio, compared with 0.50% for PCY.

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

PCY has the higher dividend yield at 5.91%, compared with 4.01% for SCHP.

What is the main difference between SCHP and PCY?

SCHP is categorized as Inflation-Protected Bonds, while PCY is Emerging Markets Bonds. SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), while PCY tracks DB Emerging Market USD Liquid Balanced Index. They also come from different issuers: Charles Schwab and Invesco. Their fees differ too: 0.03% for SCHP and 0.50% for PCY.

Which has better risk-adjusted returns?

PCY currently has the higher Sharpe Ratio (1.83 vs 1.47), 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.