STIP vs. SCHP
Compare and contrast key facts about iShares 0-5 Year TIPS Bond ETF (STIP) and Schwab U.S. TIPS ETF (SCHP).
STIP and SCHP 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. 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. Both STIP and SCHP 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 SCHP.
Key characteristics
| STIP | SCHP | |
|---|---|---|
| YTD Return | 0.71% | -1.52% |
| 1Y Return | 2.94% | -1.09% |
| 3Y Return (Ann) | 2.01% | -1.48% |
| 5Y Return (Ann) | 3.13% | 2.04% |
| 10Y Return (Ann) | 1.98% | 1.90% |
| Sharpe Ratio | 1.08 | -0.25 |
| Daily Std Dev | 2.51% | 5.94% |
| Max Drawdown | -5.50% | -14.26% |
| Current Drawdown | -0.29% | -10.47% |
Correlation
The correlation between STIP and SCHP is 0.76, 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
STIP vs. SCHP - Performance Comparison
In the year-to-date period, STIP achieves a 0.71% return, which is significantly higher than SCHP's -1.52% return. Both investments have delivered pretty close results over the past 10 years, with STIP having a 1.98% annualized return and SCHP not far behind at 1.90%. 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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STIP vs. SCHP - Expense Ratio Comparison
STIP has a 0.06% expense ratio, which is higher than SCHP'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%.
Risk-Adjusted Performance
STIP vs. SCHP - 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 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.
Dividends
STIP vs. SCHP - Dividend Comparison
STIP's dividend yield for the trailing twelve months is around 2.70%, less than SCHP's 3.06% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 2.70% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.44% | 1.59% | 0.89% | 0.00% | 0.74% | 0.31% |
SCHP Schwab U.S. TIPS ETF | 3.06% | 3.02% | 7.19% | 4.39% | 1.11% | 2.02% | 2.63% | 1.90% | 1.38% | 0.28% | 1.30% | 0.67% |
Drawdowns
STIP vs. SCHP - Drawdown Comparison
The maximum STIP drawdown since its inception was -5.50%, smaller than the maximum SCHP drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for STIP and SCHP. For additional features, visit the drawdowns tool.
Volatility
STIP vs. SCHP - Volatility Comparison
The current volatility for iShares 0-5 Year TIPS Bond ETF (STIP) is 0.58%, while Schwab U.S. TIPS ETF (SCHP) has a volatility of 1.56%. This indicates that STIP 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.