SCHR vs. STIP
Compare and contrast key facts about Schwab Intermediate-Term U.S. Treasury ETF (SCHR) and iShares 0-5 Year TIPS Bond ETF (STIP).
SCHR and STIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SCHR is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Treasury (3-10 Y). It was launched on Aug 5, 2010. STIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Dec 1, 2010. Both SCHR and STIP 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: SCHR or STIP.
Key characteristics
| SCHR | STIP | |
|---|---|---|
| YTD Return | -1.05% | 1.46% |
| 1Y Return | -0.06% | 3.77% |
| 3Y Return (Ann) | -2.78% | 1.86% |
| 5Y Return (Ann) | 0.04% | 3.25% |
| 10Y Return (Ann) | 1.02% | 1.99% |
| Sharpe Ratio | -0.07 | 1.54 |
| Daily Std Dev | 5.61% | 2.47% |
| Max Drawdown | -16.11% | -5.50% |
| Current Drawdown | -10.86% | -0.03% |
Correlation
The correlation between SCHR and STIP is 0.54, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
SCHR vs. STIP - Performance Comparison
In the year-to-date period, SCHR achieves a -1.05% return, which is significantly lower than STIP's 1.46% return. Over the past 10 years, SCHR has underperformed STIP with an annualized return of 1.02%, while STIP has yielded a comparatively higher 1.99% 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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SCHR vs. STIP - Expense Ratio Comparison
SCHR has a 0.05% expense ratio, which is lower than STIP's 0.06% 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
SCHR vs. STIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Intermediate-Term U.S. Treasury ETF (SCHR) and iShares 0-5 Year TIPS Bond ETF (STIP). 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
SCHR vs. STIP - Dividend Comparison
SCHR's dividend yield for the trailing twelve months is around 3.45%, more than STIP's 2.80% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCHR Schwab Intermediate-Term U.S. Treasury ETF | 3.45% | 3.16% | 2.02% | 1.00% | 1.62% | 2.31% | 2.11% | 1.65% | 1.45% | 1.56% | 1.44% | 1.07% |
STIP iShares 0-5 Year TIPS Bond ETF | 2.80% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.44% | 1.59% | 0.89% | 0.00% | 0.74% | 0.31% |
Drawdowns
SCHR vs. STIP - Drawdown Comparison
The maximum SCHR drawdown since its inception was -16.11%, which is greater than STIP's maximum drawdown of -5.50%. Use the drawdown chart below to compare losses from any high point for SCHR and STIP. For additional features, visit the drawdowns tool.
Volatility
SCHR vs. STIP - Volatility Comparison
Schwab Intermediate-Term U.S. Treasury ETF (SCHR) has a higher volatility of 1.14% compared to iShares 0-5 Year TIPS Bond ETF (STIP) at 0.52%. This indicates that SCHR's price experiences larger fluctuations and is considered to be riskier than STIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.