ETF Versus

SCHP vs SCHZ

Schwab U.S. TIPS ETF vs Schwab U.S. Aggregate Bond ETF

Last updated: 2026-04-02

SCHP Schwab

Schwab U.S. TIPS ETF (SCHP) is an exchange-traded fund issued by Schwab that provides exposure to us tips securities. It charges a very low expense ratio of 0.05%. The fund offers an attractive dividend yield of 3.71%. Launched in 2010, the fund has a 16-year track record.

AUM: N/A ER: 0.05% Yield: 3.71% Since: 2010-08-05
SCHZ Schwab

Schwab U.S. Aggregate Bond ETF (SCHZ) is an exchange-traded fund issued by Schwab that provides exposure to the broad U.S. investment-grade bond market. It charges a very low expense ratio of 0.03%. The fund offers a high dividend yield of 4.10%. Launched in 2011, the fund has a 15-year track record.

AUM: N/A ER: 0.03% Yield: 4.10% Since: 2011-07-14

Quick Verdict

SCHZ has a slightly lower expense ratio (0.03% vs 0.05%), saving about $40 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (-0.5% vs 0.3%), tracking closely.

Key Metrics

Metric SCHP SCHZ
Expense Ratio 0.05% 0.03%
Dividend Yield 3.7% 4.1%
Fund Family Schwab Schwab
Category US TIPS US Aggregate Bond

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-06 2023-10 2024-12 2026-04
SCHP -12.7%
SCHZ -13.9%

Performance Comparison

Period SCHP SCHZ Difference
1 Month -0.84% -1.33% +0.49%
3 Months +0.62% -0.66% +1.28%
6 Months -0.69% -0.78% +0.09%
YTD +0.62% -0.66% +1.28%
1 Year -0.47% +0.29% -0.76%
3 Years -0.63% -1.18% +0.55%
5 Years -12.68% -13.92% +1.24%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHP Fees SCHZ Fees You Save
$10,000 10 years $100 $60 $40
$10,000 20 years $430 $258 $171
$10,000 30 years $1,388 $835 $553
$50,000 10 years $499 $299 $199
$50,000 30 years $6,941 $4,176 $2,765
$100,000 30 years $13,882 $8,352 $5,531

Risk Metrics

Based on 5 years of daily returns

Metric SCHP SCHZ
Annualized Volatility 6.3% 6.1%
Max Drawdown -22.2% -21.9%
Sharpe Ratio -1.11 -1.20

Dividend Comparison

Metric SCHP SCHZ
Annual Dividend (per share) $0.99 $0.95
Dividend Yield 3.71% 4.10%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose SCHZ if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose SCHZ if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Related Comparisons

AGG vs SCHZ BND vs SCHZ SCHA vs SCHP SCHA vs SCHZ SCHB vs SCHP SCHB vs SCHZ SCHD vs SCHP SCHD vs SCHZ