SCMB vs. SCHP
SCMB (Schwab Municipal Bond ETF) and SCHP (Schwab U.S. TIPS ETF) are both exchange-traded funds - SCMB is a Municipal Bonds fund tracking the ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while SCHP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past 3 years, SCMB returned 3.26%/yr vs 4.14%/yr for SCHP. A 0.63 correlation means they provide meaningful diversification when combined. Both charge a 0.03% expense ratio.
Performance
SCMB vs. SCHP - Performance Comparison
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Returns By Period
In the year-to-date period, SCMB achieves a 1.07% return, which is significantly lower than SCHP's 1.42% return.
SCMB
- 1D
- 0.00%
- 1M
- 1.12%
- YTD
- 1.07%
- 6M
- 1.59%
- 1Y
- 6.26%
- 3Y*
- 3.26%
- 5Y*
- —
- 10Y*
- —
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%
SCMB vs. SCHP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
SCMB Schwab Municipal Bond ETF | 1.07% | 3.78% | 0.91% | 5.86% | 2.88% |
SCHP Schwab U.S. TIPS ETF | 1.42% | 6.76% | 1.95% | 3.91% | 1.42% |
Correlation
The correlation between SCMB and SCHP is 0.51, 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 | 0.51 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Oct 12, 2022 | 0.63 |
The correlation between SCMB and SCHP shifts across timeframes, from 0.51 (1 year) to 0.65 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
SCMB vs. SCHP — Risk / Return Rank
SCMB
SCHP
SCMB vs. SCHP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Schwab Municipal Bond ETF (SCMB) and Schwab U.S. TIPS ETF (SCHP). 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.
| SCMB | SCHP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.67 | ||
| Sortino ratioReturn per unit of downside risk | +0.89 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.25 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.08 | 2.45 | -0.37 |
| Martin ratioReturn relative to average drawdown | 6.87 | 7.41 | -0.53 |
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Drawdowns
SCMB vs. SCHP - Drawdown Comparison
The maximum SCMB drawdown since its inception was -6.13%, smaller than the maximum SCHP drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for SCMB and SCHP.
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Drawdown Indicators
| SCMB | SCHP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.13% | -14.26% | +8.13% |
Max Drawdown (1Y)Largest decline over 1 year | -2.92% | -1.93% | -0.99% |
Max Drawdown (3Y)Largest decline over 3 years | -5.57% | -4.48% | -1.09% |
Max Drawdown (5Y)Largest decline over 5 years | — | -14.26% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.26% | — |
Current DrawdownCurrent decline from peak | -0.87% | -0.44% | -0.43% |
Average DrawdownAverage peak-to-trough decline | -1.32% | -3.93% | +2.61% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.88% | 0.64% | +0.24% |
Volatility
SCMB vs. SCHP - Volatility Comparison
The current volatility for Schwab Municipal Bond ETF (SCMB) is 0.96%, while Schwab U.S. TIPS ETF (SCHP) has a volatility of 1.02%. This indicates that SCMB experiences smaller price fluctuations and is considered to be less risky than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCMB | SCHP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.96% | 1.02% | -0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 2.16% | 2.24% | -0.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.89% | 3.30% | -0.41% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.15% | 6.12% | -1.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.15% | 5.59% | -1.44% |
SCMB vs. SCHP - Expense Ratio Comparison
Both SCMB and SCHP 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
SCMB vs. SCHP - Dividend Comparison
SCMB's dividend yield for the trailing twelve months is around 3.54%, less than SCHP's 3.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
SCMB Schwab Municipal Bond ETF | 3.54% | 3.36% | 3.34% | 3.10% | 0.59% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SCMB and SCHP have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCHP has higher volatility (1.02%) compared to SCMB (0.96%). In terms of maximum drawdown, SCMB dropped -6.13% vs SCHP's -14.26%.
On 3-year performance, SCHP leads with 4.14% vs 3.26% for SCMB. Both ETFs have the same 0.03% expense ratio. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, SCHP has performed better with a 4.14% return vs 3.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SCMB and SCHP have the same expense ratio: 0.03% per year.
SCHP has the higher dividend yield at 3.99%, compared with 3.54% for SCMB.
SCMB is categorized as Municipal Bonds, while SCHP is Inflation-Protected Bonds. SCMB tracks ICE AMT-Free Core U.S. National Municipal Index - Benchmark TR Gross, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L).
SCMB currently has the higher Sharpe Ratio (2.11 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.
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