STIP vs. SCHO
Compare and contrast key facts about iShares 0-5 Year TIPS Bond ETF (STIP) and Schwab Short-Term U.S. Treasury ETF (SCHO).
STIP and SCHO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. SCHO is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US Treasury (1-3 Y) (Inception 4/30/1996). It was launched on Aug 5, 2010. Both STIP and SCHO 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: STIP or SCHO.
Performance
STIP vs. SCHO - Performance Comparison
Returns By Period
The year-to-date returns for both investments are quite close, with STIP having a 4.40% return and SCHO slightly higher at 4.50%. Over the past 10 years, STIP has outperformed SCHO with an annualized return of 2.38%, while SCHO has yielded a comparatively lower 2.06% annualized return.
STIP
4.40%
-0.30%
2.89%
6.03%
3.49%
2.38%
SCHO
4.50%
-0.28%
3.19%
6.86%
2.23%
2.06%
Key characteristics
| STIP | SCHO | |
|---|---|---|
| Sharpe Ratio | 3.04 | 3.42 |
| Sortino Ratio | 5.08 | 6.02 |
| Omega Ratio | 1.67 | 1.82 |
| Calmar Ratio | 4.49 | 7.18 |
| Martin Ratio | 23.03 | 21.04 |
| Ulcer Index | 0.27% | 0.33% |
| Daily Std Dev | 2.03% | 2.06% |
| Max Drawdown | -5.50% | -5.28% |
| Current Drawdown | -0.63% | -0.82% |
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STIP vs. SCHO - Expense Ratio Comparison
STIP has a 0.06% expense ratio, which is higher than SCHO's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between STIP and SCHO is 0.52, 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.
Risk-Adjusted Performance
STIP vs. SCHO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 0-5 Year TIPS Bond ETF (STIP) and Schwab Short-Term U.S. Treasury ETF (SCHO). 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
STIP vs. SCHO - Dividend Comparison
STIP's dividend yield for the trailing twelve months is around 2.46%, less than SCHO's 5.74% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 2.46% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.43% | 1.59% | 0.89% | 0.00% | 0.75% | 0.31% |
SCHO Schwab Short-Term U.S. Treasury ETF | 5.74% | 5.58% | 2.14% | 0.61% | 1.91% | 3.20% | 2.43% | 1.73% | 1.36% | 0.95% | 0.82% | 0.52% |
Drawdowns
STIP vs. SCHO - Drawdown Comparison
The maximum STIP drawdown since its inception was -5.50%, roughly equal to the maximum SCHO drawdown of -5.28%. Use the drawdown chart below to compare losses from any high point for STIP and SCHO. For additional features, visit the drawdowns tool.
Volatility
STIP vs. SCHO - Volatility Comparison
iShares 0-5 Year TIPS Bond ETF (STIP) has a higher volatility of 0.48% compared to Schwab Short-Term U.S. Treasury ETF (SCHO) at 0.40%. This indicates that STIP's price experiences larger fluctuations and is considered to be riskier than SCHO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.