Schwab U.S. TIPS ETF (SCHP): Complete Beginner's Guide
Schwab U.S. TIPS ETF (SCHP) is a inflation-protected bond ETF from Schwab with an expense ratio of 0.03% and $14.0B in assets under management. Our Beginner Suitability Score: 8.5/10 (Great for Beginners). 5-year annualized return: 3.00%.
Last updated: April 2026
Schwab • Inflation-Protected Bond
Expense Ratio
0.03%
AUM
$14.0B
Dividend Yield
2.50%
Inception
2010
Beginner Score
8.5/10
What is Schwab U.S. TIPS ETF?
SCHP invests in U.S. Treasury Inflation-Protected Securities (TIPS), which adjust their principal value based on changes in the Consumer Price Index. This provides a built-in hedge against inflation. Beginners worried about inflation eroding their savings will find SCHP a straightforward way to protect purchasing power.
SCHP is managed by Schwab and has been available since 2010. With $14.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
SCHP at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 48 |
| P/E Ratio | N/A |
| Beta | 0.10 |
| Dividend Yield | 2.50% |
| AUM | $14.0B |
| Inception Year | 2010 |
| Issuer | Schwab |
Top 10 Holdings in SCHP
SCHP holds 48 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury TIPS 0.125% 2033 | N/A | 8.00% |
| 2 | U.S. Treasury TIPS 0.625% 2043 | N/A | 7.00% |
| 3 | U.S. Treasury TIPS 1.0% 2049 | N/A | 6.50% |
| 4 | U.S. Treasury TIPS 0.125% 2031 | N/A | 6.00% |
| 5 | U.S. Treasury TIPS 0.75% 2028 | N/A | 5.50% |
| 6 | U.S. Treasury TIPS 0.375% 2027 | N/A | 5.00% |
| 7 | U.S. Treasury TIPS 2.375% 2025 | N/A | 4.80% |
| 8 | U.S. Treasury TIPS 0.5% 2030 | N/A | 4.50% |
| 9 | U.S. Treasury TIPS 1.375% 2044 | N/A | 4.00% |
| 10 | U.S. Treasury TIPS 0.875% 2029 | N/A | 3.80% |
SCHP's top holding is U.S. Treasury TIPS 0.125% 2033 (N/A) at 8.00%, followed by U.S. Treasury TIPS 0.625% 2043 (N/A) at 7.00% and U.S. Treasury TIPS 1.0% 2049 (N/A) at 6.50%. The top 10 holdings account for 55.10% of the fund's 48 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | U.S. Treasury TIPS 0.125% 2033 | N/A | 8.00% |
| 2 | U.S. Treasury TIPS 0.625% 2043 | N/A | 7.00% |
| 3 | U.S. Treasury TIPS 1.0% 2049 | N/A | 6.50% |
| 4 | U.S. Treasury TIPS 0.125% 2031 | N/A | 6.00% |
| 5 | U.S. Treasury TIPS 0.75% 2028 | N/A | 5.50% |
| 6 | U.S. Treasury TIPS 0.375% 2027 | N/A | 5.00% |
| 7 | U.S. Treasury TIPS 2.375% 2025 | N/A | 4.80% |
| 8 | U.S. Treasury TIPS 0.5% 2030 | N/A | 4.50% |
| 9 | U.S. Treasury TIPS 1.375% 2044 | N/A | 4.00% |
| 10 | U.S. Treasury TIPS 0.875% 2029 | N/A | 3.80% |
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SCHP Performance History
Here's how SCHP has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
0.50%
1 Year
3.50%
3 Year
1.00%
5 Year
3.00%
10 Year
2.50%
SCHP has returned 3.00% annualized over 5 years and 2.50% over 10 years. YTD return is 0.50%.
View data table
| Period | Return |
|---|---|
| YTD | 0.50% |
| 1 Year | 3.50% |
| 3 Year | 1.00% |
| 5 Year | 3.00% |
| 10 Year | 2.50% |
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
SCHP scores 8.5/10 because it has very low fees, shows lower-than-average volatility, focuses on 48 selected holdings, and has been available since 2010, giving it a proven track record.
How to Buy SCHP — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "SCHP" — Use the search bar in your brokerage platform to find Schwab U.S. TIPS ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
SCHP Sector Allocation
Here's how SCHP distributes its investments across different sectors of the economy:
SCHP's largest sector allocation is U.S. Treasury TIPS at 100.0%.
View data table
| Sector | Weight |
|---|---|
| U.S. Treasury TIPS | 100.0% |
Dollar Cost Averaging Into SCHP
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With SCHP's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
SCHP's expense ratio of 0.03% costs $259 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,351.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,673 | $20 |
| 10 | $21,589 | $21,529 | $60 |
| 15 | $31,722 | $31,590 | $132 |
| 20 | $46,610 | $46,351 | $259 |
Pros and Cons of SCHP
Pros
- ✓Direct inflation protection through CPI-adjusted principal
- ✓Ultra-low expense ratio of just 0.03% from Schwab
- ✓Backed by U.S. government, virtually eliminating credit risk
- ✓Excellent portfolio diversifier during inflationary periods
Cons
- ✗Returns can be negative when inflation expectations fall
- ✗More interest rate sensitive than short-term bond funds
- ✗Tax treatment of inflation adjustments can be complex
Frequently Asked Questions
Is SCHP a good ETF for beginners?▾
SCHP has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of SCHP?▾
SCHP has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in SCHP?▾
You can invest in SCHP with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does SCHP pay dividends?▾
Yes, SCHP pays dividends with a current yield of approximately 2.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in SCHP?▾
The top holdings in SCHP include U.S. Treasury TIPS 0.125% 2033 (8.00%), U.S. Treasury TIPS 0.625% 2043 (7.00%), U.S. Treasury TIPS 1.0% 2049 (6.50%), and more. The fund holds 48 total positions, providing focused exposure to selected companies.
What sectors does SCHP invest in?▾
SCHP's largest sector allocations are U.S. Treasury TIPS (100.00%). This sector distribution shows a focus on u.s. treasury tips stocks.
How much do SCHP's fees cost over time?▾
With an expense ratio of 0.03%, a $10,000 investment in SCHP would lose approximately $258 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.