Schwab U.S. TIPS ETF (SCHP): Complete Beginner's Guide
Last updated: March 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% |
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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%
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.
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.
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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.