Profile
Assets class:
EquityAssets under management:
$11 BAverage volume:
$2 MDomicile:
USExpense ratio:
0.03%Inception date:
05 August 2010Last dividends:
01 November 2024Next dividends:
N/ATop countries
Dividend yield TTM
SCHP Latest News
The Schwab U.S. TIPS ETF (SCHP) owns a portfolio of Treasury Inflation-Protected Securities. With the Fed cutting interest rates while inflation remains above target, SCHP should continue to see dual tailwinds from higher principal adjustments and duration returns. Paradoxically, the key risk to monitor is inflation. If inflation surges, the Fed may have to restart rate hikes, which could lead to duration losses for the SCHP.
SCHP holds a portfolio of long-term TIPS, which could benefit from increased inflation. However, if the Fed maintains its current stance on interest rates unless inflation becomes uncontrollable, any potential decreases in NAV may be minimal. Conversely, if the economy falters, the Fed is prepared to lower interest rates to stimulate job growth, which could have a positive impact on SCHP's NAV.
We think U.S. bond markets are underestimating how difficult it might be to fight inflation. We'll have confirmation one way or another starting next Tuesday. Schwab U.S. TIPS ETF™ contains TIPS, and an effective duration of around 7 years, where the implied expectations for inflation are too low and therefore the SCHP ETF is attractive. However, the duration and sensitivity to changes in real rate assumptions is a reason why we would opine that additional caution should be taken in addition to caution around macro.
TIPs, or Treasury Inflation-Protected Securities, are a type of bond that protects against inflation. TIPs are becoming increasingly popular among investors due to rising inflation concerns. A look at SCHP, a TIPs ETF, follows.
Schwab U.S. TIPS ETF is designed to provide investors with a hedge against rising inflation by investing in Treasury Inflation-Protected Securities. SCHP offers exposure to a wide range of TIPS issued by the U.S. government, providing a reliable and low-risk avenue for participating in inflation-protected fixed-income markets. While SCHP has performed well in terms of inflation protection, it may be outperformed by nominal Treasuries in a slowing inflation and declining interest rate environment.
Riding The TIPS Rollercoaster: SCHP's Bumpy Journey Towards A Potential Rebound
The final Fed rate hike may come sooner rather than later. Inflation expectations have eased as recent CPI and PCE data have been more tame.
What is SCHP ETF?
The fund will invest at least 90% of its net assets in securities included in the index. The index includes all publicly-issued U.S. Treasury Inflation-Protected Securities (TIPS) that have at least one year remaining to maturity, are rated investment grade and have $500 million or more of outstanding face value. The TIPS in the index must be denominated in U.S. dollars and must be fixed-rate and non-convertible.
What is SCHP assets class?
Assets class of SCHP ETF is 'Equity'
What is SCHP assets under management?
Assets under management of SCHP ETF is $11 B
What is SCHP average volume?
Average volume of SCHP ETF is $2 M
What is SCHP domicile?
Domicile of SCHP ETF is US
What is SCHP expense ratio?
Expense ratio of SCHP ETF is 0.03%
What is SCHP inception date?
Inception date of SCHP ETF is 05 August 2010
What is SCHP website?
Website of SCHP ETF is https://www.schwabassetmanagement.com/products/SCHP