VTP vs. SCHP

Last updated Jul 15, 2026

VTP (Vanguard Total Inflation-Protected Securities ETF) and SCHP (Schwab U.S. TIPS ETF) are both Inflation-Protected Bonds funds - VTP tracks the ICE U.S. Treasury Inflation Linked Bond Index while SCHP tracks the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). Both are passively managed. Over the past year, VTP returned 3.27% vs 3.24% for SCHP. With a 0.96 correlation, they move nearly in lockstep. VTP charges 0.05%/yr vs 0.03%/yr for SCHP.

Performance

VTP vs. SCHP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Inflation-Protected Securities ETF (VTP) and Schwab U.S. TIPS ETF (SCHP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTP achieves a 0.90% return, which is significantly lower than SCHP's 0.96% return.

VTP

• 1D: 0.07%
• 1M: -0.50%
• 6M: 0.58%
• YTD: 0.90%
• 1Y: 3.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SCHP

• 1D: 0.08%
• 1M: -0.45%
• 6M: 0.58%
• YTD: 0.96%
• 1Y: 3.24%
• 3Y*: 3.81%
• 5Y*: 0.63%
• 10Y*: 2.44%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VTP vs. SCHP - Yearly Performance Comparison

	2026 (YTD)	2025
VTP Vanguard Total Inflation-Protected Securities ETF	0.90%	2.46%
SCHP Schwab U.S. TIPS ETF	0.96%	2.45%

Correlation

The correlation between VTP and SCHP is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.96

The correlation between VTP and SCHP has been stable across timeframes, ranging from 0.96 to 0.96 - a consistent structural relationship.

Return for Risk

VTP vs. SCHP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VTP

VTP Risk / Return Rank: 35
VTP Sharpe Ratio Rank: 33
VTP Sortino Ratio Rank: 32
VTP Omega Ratio Rank: 30
VTP Calmar Ratio Rank: 42
VTP Martin Ratio Rank: 38

SCHP

SCHP Risk / Return Rank: 35
SCHP Sharpe Ratio Rank: 33
SCHP Sortino Ratio Rank: 32
SCHP Omega Ratio Rank: 29
SCHP Calmar Ratio Rank: 41
SCHP Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VTP vs. SCHP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Inflation-Protected Securities ETF (VTP) 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.

	VTP	SCHP	Difference
Sharpe ratio: Return per unit of total volatility	0.98	0.97	+0.01
Sortino ratio: Return per unit of downside risk	1.43	1.42	+0.01
Omega ratio: Gain probability vs. loss probability	1.17	1.17	+0.01
Calmar ratio: Return relative to maximum drawdown	1.71	1.69	+0.02
Martin ratio: Return relative to average drawdown	4.86	4.88	-0.02

VTP vs. SCHP - Sharpe Ratio Comparison

The current VTP Sharpe Ratio is 0.98, which is comparable to the SCHP Sharpe Ratio of 0.97. The chart below compares the historical Sharpe Ratios of VTP and SCHP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VTP vs. SCHP - Drawdown Comparison

The maximum VTP drawdown since its inception was -1.92%, smaller than the maximum SCHP drawdown of -14.26%. Use the drawdown chart below to compare losses from any high point for VTP and SCHP.

Drawdown Indicators

	VTP	SCHP	Difference
Max Drawdown Largest peak-to-trough decline	-1.92%	-14.26%	+12.34%
Max Drawdown (1Y) Largest decline over 1 year	-1.92%	-1.93%	+0.01%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.48%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-14.26%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-14.26%	—
Current Drawdown Current decline from peak	-0.94%	-0.89%	-0.05%
Average Drawdown Average peak-to-trough decline	-0.53%	-3.91%	+3.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	0.67%	0.00%

Volatility

VTP vs. SCHP - Volatility Comparison

Vanguard Total Inflation-Protected Securities ETF (VTP) has a higher volatility of 1.19% compared to Schwab U.S. TIPS ETF (SCHP) at 1.13%. This indicates that VTP's price experiences larger fluctuations and is considered to be riskier than SCHP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTP	SCHP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.19%	1.13%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	2.48%	2.43%	+0.05%
Volatility (1Y) Calculated over the trailing 1-year period	3.36%	3.37%	-0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.35%	6.11%	-2.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.35%	5.59%	-2.24%

VTP vs. SCHP - Expense Ratio Comparison

VTP has a 0.05% expense ratio, which is higher than SCHP's 0.03% 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%.

Dividends

VTP vs. SCHP - Dividend Comparison

VTP's dividend yield for the trailing twelve months is around 2.98%, less than SCHP's 4.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHP Schwab U.S. TIPS ETF	4.49%	4.06%	2.99%	3.02%	7.19%	4.39%	1.11%	2.02%	2.26%	1.90%	1.38%	0.28%
VTP Vanguard Total Inflation-Protected Securities ETF	2.98%	1.56%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VTP and SCHP in my portfolio?

With a correlation of 0.96, VTP and SCHP move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VTP or SCHP?

VTP has higher volatility (1.19%) compared to SCHP (1.13%). In terms of maximum drawdown, VTP dropped -1.92% vs SCHP's -14.26%.

Which ETF is better, VTP or SCHP?

On 1-year performance, VTP leads with 3.27% vs 3.24% for SCHP. On fees, SCHP is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTP or SCHP?

Over the 1-year period, VTP has performed better with a 3.27% return vs 3.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTP or SCHP?

SCHP is cheaper with a 0.03% expense ratio, compared with 0.05% for VTP.

Which ETF pays a higher dividend yield, VTP or SCHP?

SCHP has the higher dividend yield at 4.49%, compared with 2.98% for VTP.

What is the main difference between VTP and SCHP?

VTP tracks ICE U.S. Treasury Inflation Linked Bond Index, while SCHP tracks Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). They also come from different issuers: Vanguard and Charles Schwab. Their fees differ too: 0.05% for VTP and 0.03% for SCHP.

Which has better risk-adjusted returns?

VTP currently has the higher Sharpe Ratio (0.98 vs 0.97), 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.