SCHP vs. TIP
Compare and contrast key facts about Schwab U.S. TIPS ETF (SCHP) and iShares TIPS Bond ETF (TIP).
SCHP and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003. Both SCHP and TIP 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: SCHP or TIP.
Key characteristics
| SCHP | TIP | |
|---|---|---|
| YTD Return | -1.56% | -1.60% |
| 1Y Return | -1.20% | -1.37% |
| 3Y Return (Ann) | -1.56% | -1.71% |
| 5Y Return (Ann) | 2.14% | 1.98% |
| 10Y Return (Ann) | 1.80% | 1.69% |
| Sharpe Ratio | -0.08 | -0.10 |
| Daily Std Dev | 5.90% | 5.95% |
| Max Drawdown | -14.26% | -14.56% |
| Current Drawdown | -10.50% | -10.85% |
Correlation
The correlation between SCHP and TIP is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
SCHP vs. TIP - Performance Comparison
The year-to-date returns for both stocks are quite close, with SCHP having a -1.56% return and TIP slightly lower at -1.60%. Over the past 10 years, SCHP has outperformed TIP with an annualized return of 1.80%, while TIP has yielded a comparatively lower 1.69% 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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SCHP vs. TIP - Expense Ratio Comparison
SCHP has a 0.05% expense ratio, which is lower than TIP's 0.19% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
SCHP vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. TIPS ETF (SCHP) and iShares TIPS Bond ETF (TIP). 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
SCHP vs. TIP - Dividend Comparison
SCHP's dividend yield for the trailing twelve months is around 3.14%, more than TIP's 2.85% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHP Schwab U.S. TIPS ETF | 3.14% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.63% | 1.90% | 1.38% | 0.28% | 1.30% | 0.67% |
TIP iShares TIPS Bond ETF | 2.85% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
SCHP vs. TIP - Drawdown Comparison
The maximum SCHP drawdown since its inception was -14.26%, roughly equal to the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for SCHP and TIP. For additional features, visit the drawdowns tool.
Volatility
SCHP vs. TIP - Volatility Comparison
Schwab U.S. TIPS ETF (SCHP) and iShares TIPS Bond ETF (TIP) have volatilities of 1.54% and 1.57%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.