SCHP vs. VTIP
SCHP (Schwab U.S. TIPS ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both Inflation-Protected Bonds funds - SCHP tracks the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L) while VTIP tracks the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, SCHP returned 2.52%/yr vs 3.03%/yr for VTIP. A 0.76 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
SCHP vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, SCHP achieves a 0.81% return, which is significantly lower than VTIP's 1.34% return. Over the past 10 years, SCHP has underperformed VTIP with an annualized return of 2.52%, while VTIP has yielded a comparatively higher 3.03% annualized return.
SCHP
- 1D
- -0.42%
- 1M
- -0.18%
- YTD
- 0.81%
- 6M
- 0.92%
- 1Y
- 3.57%
- 3Y*
- 3.67%
- 5Y*
- 0.94%
- 10Y*
- 2.52%
VTIP
- 1D
- -0.18%
- 1M
- -0.24%
- YTD
- 1.34%
- 6M
- 1.46%
- 1Y
- 3.64%
- 3Y*
- 5.00%
- 5Y*
- 3.26%
- 10Y*
- 3.03%
SCHP vs. VTIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCHP Schwab U.S. TIPS ETF | 0.81% | 6.76% | 1.95% | 3.91% | -12.02% | 5.87% | 10.86% | 8.52% | -1.78% | 3.02% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 1.34% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
Correlation
The correlation between SCHP and VTIP 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 | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.84 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.79 |
Correlation (All Time) Calculated using the full available price history since Oct 16, 2012 | 0.76 |
The correlation between SCHP and VTIP has been stable across timeframes, ranging from 0.74 to 0.84 - a consistent structural relationship.
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Return for Risk
SCHP vs. VTIP — Risk / Return Rank
SCHP
VTIP
SCHP vs. VTIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab U.S. TIPS ETF (SCHP) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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 | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.25 | ||
| Sortino ratioReturn per unit of downside risk | -2.06 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.47 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | 1.86 | 5.12 | -3.26 |
| Martin ratioReturn relative to average drawdown | 5.54 | 18.66 | -13.12 |
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Drawdowns
SCHP vs. VTIP - Drawdown Comparison
The maximum SCHP drawdown since its inception was -14.26%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for SCHP and VTIP.
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Drawdown Indicators
| SCHP | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.26% | -6.27% | -7.99% |
Max Drawdown (1Y)Largest decline over 1 year | -1.93% | -0.71% | -1.22% |
Max Drawdown (3Y)Largest decline over 3 years | -4.48% | -0.98% | -3.50% |
Max Drawdown (5Y)Largest decline over 5 years | -14.26% | -5.50% | -8.76% |
Max Drawdown (10Y)Largest decline over 10 years | -14.26% | -6.27% | -7.99% |
Current DrawdownCurrent decline from peak | -1.04% | -0.71% | -0.33% |
Average DrawdownAverage peak-to-trough decline | -3.93% | -1.04% | -2.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.65% | 0.20% | +0.45% |
Volatility
SCHP vs. VTIP - Volatility Comparison
Schwab U.S. TIPS ETF (SCHP) has a higher volatility of 1.20% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.65%. This indicates that SCHP's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCHP | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.20% | 0.65% | +0.55% |
Volatility (6M)Calculated over the trailing 6-month period | 2.39% | 1.17% | +1.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.35% | 1.58% | +1.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.11% | 2.77% | +3.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.60% | 2.74% | +2.86% |
SCHP vs. VTIP - Expense Ratio Comparison
Both SCHP and VTIP have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
SCHP vs. VTIP - Dividend Comparison
SCHP's dividend yield for the trailing twelve months is around 4.02%, more than VTIP's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHP Schwab U.S. TIPS ETF | 4.02% | 4.06% | 2.99% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.26% | 1.90% | 1.38% | 0.28% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.61% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% |
Frequently Asked Questions
SCHP and VTIP 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.
SCHP has higher volatility (1.20%) compared to VTIP (0.65%). In terms of maximum drawdown, SCHP dropped -14.26% vs VTIP's -6.27%.
On 10-year performance, VTIP leads with 3.03% vs 2.52% for SCHP. Both ETFs have the same 0.03% expense ratio. On volatility, VTIP has been the lower-risk option at 0.65%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VTIP has performed better with a 3.03% return vs 2.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCHP and VTIP have the same expense ratio: 0.03% per year.
SCHP has the higher dividend yield at 4.02%, compared with 3.61% for VTIP.
SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: Charles Schwab and Vanguard.
VTIP currently has the higher Sharpe Ratio (2.32 vs 1.07), 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.
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