At a glance
SCHP charges 0.03% a year, below the 0.13% average of the 7 funds most like it (the cheapest of 8). It has $16.52B in assets, the 4th largest of that group; it paid 4.96% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −0.3% with distributions reinvested, 3rd of those 8 funds; over three years it returned +4.3% a year. At its worst it fell 10.8% in the 2020 crash (S&P 500: 33.7%) and 14.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 37 months after the lows. Its ten largest positions make up 36.3% of the fund, out of 48 in all.
The short version
Schwab U.S. TIPS ETF (SCHP) holds U.S. Treasury Inflation-Protected Securities (TIPS) by tracking the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). TIPS are government bonds whose principal rises with the Consumer Price Index. The fund stands out most for cost: its expense ratio is 0.03%, compared with 0.18% for iShares TIPS Bond ETF (TIP) and a 0.13% average for similar funds. Its inflation link does not stop it from falling when real interest rates rise, as it did in 2022.
Price history
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SCHP -0.3% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| SCHP official prospectus, to Dec 31, 2025 | — | +6.85% | — | +1.05% | +3.02% | — |
| Bloomberg US Aggregate Bond Index index, same period | — | +7.30% | — | -0.36% | +2.01% | — |
| Bloomberg US Treasury Inflation-Linked Bond Index (Series-L) index, same period | — | +7.01% | — | +1.12% | +3.08% | — |
| SCHP price data to Nov 2, 2026 | +0.1% | -0.3% | +4.3% | +0.2% | +2.3% | +2.5% |
- Over the year to Nov 2, 2026, SCHP returned -0.3%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +0.2% and its 10-year +2.3%.
- In the 2020 COVID crash it fell 10.8% and regained its old high 2.8 months after the low.
- Its worst full calendar year was 2022 (-12.1%); its best was 2011 (+11.8%).
- The deepest fall in its price history was 14.3% (Mar 8, 2022 to Oct 6, 2023), recovered by Oct 22, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +0.1% | — |
| 2025 | +6.8% | +6.85% |
| 2024 | +2.0% | +1.95% |
| 2023 | +3.9% | +3.87% |
| 2022 | -12.1% | -11.96% |
| 2021 | +5.9% | +5.80% |
| 2020 | +10.9% | +10.94% |
| 2019 | +8.5% | +8.36% |
| 2018 | -1.4% | -1.31% |
| 2017 | +3.0% | +2.95% |
| 2016 | +4.6% | +4.60% |
| 2015 | -1.8% | — |
| 2014 | +4.1% | — |
| 2013 | -9.2% | — |
| 2012 | +5.7% | — |
| 2011 | +11.8% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 0.9% over that stretch · deepest drop along the way 10.8%, back to its old high 2.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.6% over that stretch · deepest drop along the way 14.3%, back to its old high 36.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9100 | |
| 2025 | $1.0800 | +38.5% |
| 2024 | $0.7800 | -1.3% |
| 2023 | $0.7900 | -57.3% |
| 2022 | $1.8500 | +33.6% |
| 2021 | $1.3850 | +295.7% |
| 2020 | $0.3500 | -39.1% |
| 2019 | $0.5750 | -18.1% |
| 2018 | $0.7017 | +33.7% |
| 2017 | $0.5250 | +38.2% |
| 2016 | $0.3800 | +406.7% |
| 2015 | $0.0750 | -78.3% |
| 2014 | $0.3450 | +292.0% |
| 2013 | $0.0880 | -61.9% |
| 2012 | $0.2312 | -40.8% |
| 2011 | $0.3904 |
Living on SCHP: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Jun 30, 2026, the fund held 48 securities; the ten largest made up 36.25% of assets.
| Holding | Weight | |
|---|---|---|
| United States Treasury Bonds and notes | 4.07% | |
| United States Treasury Bonds and notes | 4.01% | |
| United States Treasury Bonds and notes | 4.00% | |
| United States Treasury Bonds and notes | 3.77% | |
| United States Treasury Bonds and notes | 3.60% | |
| United States Treasury Bonds and notes | 3.40% | |
| United States Treasury Bonds and notes | 3.38% | |
| United States Treasury Bonds and notes | 3.36% | |
| United States Treasury Bonds and notes | 3.34% | |
| United States Treasury Bonds and notes | 3.33% | |
| United States Treasury Bonds and notes | 3.27% | |
| United States Treasury Bonds and notes | 3.16% | |
| United States Treasury Bonds and notes | 3.14% | |
| United States Treasury Bonds and notes | 3.13% | |
| United States Treasury Bonds and notes | 3.05% |
By country
United States 99.53%By issuer
US Treasury 99.53%The bonds mature in 7.2 years on average (weighted by size), with an average coupon of 1.3%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $911.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.12%, +0.21%, -0.48%.
How it works
SCHP tracks the Bloomberg US Treasury Inflation-Linked Bond Index (Series-L). The index includes every publicly issued TIPS with at least one year left to maturity, an investment-grade rating and at least $500 million of face value outstanding. The bonds must be dollar-denominated, fixed-rate and non-convertible. The index weights each issue by market value, so larger issues count for more, and it updates its holdings on the last business day of each month.
Charles Schwab Investment Management generally replicates the index, meaning it holds the same bonds at the same weights. It can shift weights slightly to avoid odd lots or for tax or liquidity reasons, and it can use sampling, which means holding a representative subset of the index. At least 90% of assets must be in index securities. The fund can also lend out its bonds. As of June 30, 2026, it held 48 TIPS issues. The largest position was 4.07% of assets, the top 10 made up 36.25%, and the average time to maturity was 7.2 years. Portfolio turnover was 23%.
Each TIPS bond's principal is adjusted for inflation, and interest is paid on that adjusted amount, so payments grow when prices rise. The bonds' market prices respond to real interest rates, which are interest rates minus expected inflation. When real rates rise, TIPS prices generally fall.
What it really costs
- SCHP charges 0.03% a year, versus an average of 0.13% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $3 in the first year and $39 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| SCHP | $3 | $10 | $17 | $39 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its bonds' principal and interest are tied to the Consumer Price Index, which gives a portfolio a direct link to inflation that ordinary bonds lack.
SCHP could add Treasury-backed inflation protection for very little cost. In the SEC's standard example, $10,000 would cost $39 in fees over 10 years. It is not a crash shield, though. The fund launched in 2010, so it has no record for 2008. In the 2020 COVID sell-off it fell 10.8% between March 6 and March 18, 2020, then recovered by June 10. In 2022, rising real interest rates cut 11.96% from its value even though inflation was high, which made it the fund's worst year. Its deepest drop, 14.3% from its March 8, 2022 peak, was not fully recovered until October 22, 2025. Anyone who needed to sell shares during that stretch would have locked in losses. The trailing 12-month yield was 4.95% as of October 29, 2026, paid quarterly, but TIPS payouts rise and fall with inflation. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want Treasury-backed inflation protection for 0.03% a year, compared with 0.18% for iShares TIPS Bond ETF (TIP).
- Retirees who want part of their bond holdings tied to the Consumer Price Index, with credit risk limited to the U.S. government.
- Long-term holders comfortable with intermediate-term bonds: as of June 30, 2026, the fund held 48 TIPS issues averaging 7.2 years to maturity.
Look elsewhere if
- Investors who want steady, predictable income: the quarterly payouts move with inflation, so the 4.95% trailing yield may not repeat.
- Anyone looking for a buffer against stock crashes: the fund fell 10.8% in March 2020 and 14.3% from its March 2022 peak.
- Investors who want less sensitivity to interest rates may compare shorter-maturity TIPS funds such as FlexShares' TDTF, which averages 5.2 years to maturity.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SCHP this fund | 7.2 yrs | 0.03% | $16.52B | -0.3% | +4.3% |
| SPIP SPDR Portfolio TIPS ETF | 7.4 yrs | 0.12% | $1.01B | -1.0% | +4.5% |
| TIPZ PIMCO Broad U.S. TIPS Index ETF | 7.4 yrs | 0.2% | $85.3M | -1.0% | +4.6% |
| GOVT iShares U.S. Treasury Bond ETF | 7.4 yrs | 0.05% | $43.55B | -0.5% | +3.8% |
| TIP iShares TIPS Bond ETF | 6.9 yrs | 0.18% | $14.60B | -0.3% | +4.1% |
| IEF iShares 7-10 Year Treasury Bond ETF | 8.4 yrs | 0.15% | $41.82B | -1.7% | +4.0% |
| VGIT Vanguard Intermediate-Term Treasury ETF | 5.5 yrs | 0.03% | $48.41B | -0.2% | +4.5% |
| TDTF FlexShares iBoxx 5-Year Target Duration TIP… | 5.2 yrs | 0.18% | $1.04B | 0.0% | +4.8% |
Questions investors ask
Is SCHP a good hedge against inflation?
It hedges inflation directly but not perfectly. The principal of its TIPS rises with the Consumer Price Index, and interest is paid on that higher amount. Prices also react to real interest rates, though. In 2022, inflation was high but real rates rose sharply, and the fund lost 11.96%. Over the 10 years through December 31, 2025, it returned 3.02% a year on average, close to its index's 3.08%.
What's the difference between SCHP and TIP?
Both hold U.S. TIPS, but SCHP costs less: 0.03% a year compared with 0.18% for iShares TIPS Bond ETF (TIP). TIP's bonds have a slightly shorter average maturity, at 6.9 years compared with SCHP's 7.2. Returns have been close. As of October 29, 2026, SCHP returned -0.1% over one year and 4.6% a year over three years, while TIP returned -0.3% and 4.4%. The two funds are similar in size.
Does SCHP pay monthly dividends?
No, SCHP pays distributions quarterly. Over the 12 months through October 29, 2026, it paid $1.27 per share, a trailing yield of 4.95%. The payments are not fixed. They include the inflation adjustments on its TIPS, so they tend to rise when inflation runs high and shrink when it cools. Investors who need predictable income may find the amounts uneven from quarter to quarter.
Why did SCHP lose money in 2022?
SCHP fell 11.96% in 2022 because real interest rates, which are interest rates minus expected inflation, rose quickly. TIPS prices fall when real rates rise, and the higher inflation payments were not enough to make up for it. The fund's deepest drop was 14.3%, starting from its March 8, 2022 peak. It did not regain that level until October 22, 2025, which shows that inflation protection is different from price stability.
What is SCHP's expense ratio?
SCHP's expense ratio is 0.03%, according to its prospectus filed April 28, 2026. That compares with an average of 0.13% for similar funds and 0.12% for SPDR Portfolio TIPS ETF (SPIP). In the SEC's standard example, which assumes $10,000 invested with a 5% annual return, fees would total $3 after one year, $17 after five years and $39 after 10 years.