ETF Versus

SCHP vs TIP

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

Last updated: 2026-04-02

SCHP

Schwab U.S. TIPS ETF (SCHP) is an exchange-traded fund that provides exposure to us tips securities. It charges a very low expense ratio of 0.03%. The fund offers an attractive dividend yield of 3.62%. Launched in 2010, the fund has a 16-year track record.

AUM: $15.6B ER: 0.03% Yield: 3.62% Since: Aug 5, 2010
TIP

iShares TIPS Bond ETF (TIP) is an exchange-traded fund that provides exposure to us tips securities. It charges a moderate expense ratio of 0.18%. The fund offers an attractive dividend yield of 2.80%. Launched in 2003, the fund has a 23-year track record.

AUM: $13.9B ER: 0.18% Yield: 2.80% Since: Dec 4, 2003

Quick Verdict

SCHP is significantly cheaper at 0.03% vs 0.18% expense ratio, saving you approximately $297 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (-0.9% vs -0.1%), tracking closely. Income investors may prefer SCHP for its higher yield (3.6% vs 2.8%).

Key Metrics

Metric SCHP TIP
Expense Ratio 0.03% 0.18%
Dividend Yield 3.6% 2.8%
Fund Family N/A N/A
Category US TIPS US TIPS

Performance Chart

Indexed to 100 at start (5-year comparison)

80 85 90 95 100 105 2021-04 2022-06 2023-09 2024-12 2026-04
SCHP -13.0%
TIP -11.9%

Performance Comparison

Period SCHP TIP Difference
1 Month -1.26% -1.08% -0.18%
3 Months +0.30% +0.46% -0.16%
6 Months -1.15% -0.62% -0.53%
YTD +0.30% +0.46% -0.16%
1 Year -0.90% -0.08% -0.82%
3 Years -0.95% +0.04% -0.99%
5 Years -12.96% -11.85% -1.11%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period SCHP Fees TIP Fees You Save
$10.000 10 years $60 $357 $297
$10.000 20 years $258 $1.529 $1.271
$10.000 30 years $835 $4.912 $4.076
$50.000 10 years $299 $1.786 $1.486
$50.000 30 years $4.176 $24.558 $20.382
$100.000 30 years $8.352 $49.116 $40.764

Risk Metrics

Based on 5 years of daily returns

Metric SCHP TIP
Annualized Volatility 6.3% 6.5%
Max Drawdown -22.2% -22.0%
Sharpe Ratio -1.12 -1.06

Dividend Comparison

Metric SCHP TIP
Annual Dividend (per share) $1.06 $3.80
Dividend Yield 3.99% 3.44%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose SCHP if...

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

Choose SCHP if...

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

Either works if...

you just need broad us tips exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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