SCHP vs TIP: fees, holdings and returns
SCHP and TIP both hold US Treasury Inflation-Protected Securities of all maturities. Their bonds and returns are nearly the same. SCHP charges a much lower fee. Over the same dates since August 2010, SCHP returned about 2.6% a year and TIP returned about 2.5% a year.
Written by the Tactfolio research team. Fund facts checked October 17, 2026. Prices through October 20, 2026.
Key points
- SCHP costs less: 0.03% a year against 0.18%.
- SCHP started trading in August 2010. TIP started in December 2003.
- Worst drops since 2010: SCHP −14.3%, TIP −14.5%.
- Daily correlation: 0.98 (1 means they always move together).
What is the difference between SCHP and TIP?#
Both follow indexes of all TIPS with at least a year to go. Their returns have tracked each other closely, with small gaps from fees and index rules. TIP is older and trades more each day. Like other bonds, TIPS can fall when interest rates rise, even while inflation lifts what they pay back.
| Fact | SCHP | TIP |
|---|---|---|
| Full name | Schwab U.S. TIPS ETF | iShares TIPS Bond ETF |
| Issuer | Schwab | iShares (BlackRock) |
| Expense ratio | 0.03% a year | 0.18% a year |
| Started trading | August 5, 2010 | December 4, 2003 |
| Tracks | Bloomberg US Treasury Inflation-Linked Bond Index (Series-L) | ICE U.S. Treasury Inflation Linked Bond Index |
| Holdings | 49 holdings as of June 30, 2026 | 48 holdings as of October 15, 2026 |
| Type | US bonds, ETF | US bonds, ETF |
Fund facts checked on the Schwab SCHP page and the iShares (BlackRock) TIP page.
Is SCHP or TIP cheaper?#
SCHP costs less: 0.03% a year against 0.18%. On $10,000, that is about $3 a year for SCHP and $18 for TIP. The fund takes its fee out of its own value a little each day, so you never get a bill.
SCHP vs TIP performance over the same dates#
Both funds are measured from August 2010 to October 2026, the dates both traded. SCHP returned about 2.6% a year and TIP returned about 2.5% a year. SCHP came out ahead over this period, which does not mean it will again.
| Measure | SCHP | TIP |
|---|---|---|
| $10,000 grew to | $15,210 | $15,040 |
| Total return | 52.1% | 50.4% |
| Return per year (CAGR) | 2.6% | 2.5% |
| Worst drop from a high | −14.3% | −14.5% |
| Volatility (how much it swings) | 5.5% | 5.7% |
| Last 12 months | −1.4% | −1.5% |
| Last 3 years, per year | 4.4% | 4.3% |
| Last 5 years, per year | 0.1% | −0.1% |
| Last 10 years, per year | 2.3% | 2.1% |
Prices through October 20, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.
SCHP and TIP returns by year#
| Year | SCHP | TIP |
|---|---|---|
| 2026 (part of the year) | −0.6% | −0.8% |
| 2025 | 6.8% | 6.8% |
| 2024 | 1.9% | 1.7% |
| 2023 | 3.9% | 3.8% |
| 2022 | −12.0% | −12.3% |
| 2021 | 5.9% | 5.7% |
| 2020 | 10.9% | 10.8% |
| 2019 | 8.5% | 8.3% |
| 2018 | −1.4% | −1.4% |
| 2017 | 3.0% | 2.9% |
| 2016 | 4.6% | 4.7% |
| 2015 | −1.8% | −1.8% |
| 2014 | 4.1% | 3.6% |
| 2013 | −8.9% | −8.5% |
| 2012 | 6.3% | 6.4% |
| 2011 | 13.4% | 13.3% |
| 2010 (part of the year) | 1.2% | 1.3% |
Which fell further in bad times?#
A drawdown is how far a fund falls from its last high point. SCHP’s worst fall was −14.3%, from March 8, 2022 to October 6, 2023. It got back to that high on October 22, 2025.
TIP’s worst fall was −14.5%, from November 9, 2021 to October 6, 2023. It got back to that high on February 27, 2026.
Their daily moves had a correlation of 0.98. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.
Why people choose SCHP or TIP#
SCHP. Long-term holders often pick SCHP for its lower fee on the same kind of bonds.
TIP. People who already use iShares, or trade often, often pick TIP.
Strategies that hold SCHP or TIP#
These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.
- Hybrid Asset Allocation (HAA), by Wouter Keller and JW Keuning, 2023 (holds TIP)
- HAA Simple: Hybrid Asset Allocation with one asset, by Wouter Keller and JW Keuning, 2023 (holds TIP)
- Bold Asset Allocation (BAA), by Wouter Keller, 2022 (holds TIP)
- Bold Asset Allocation G4 (BAA aggressive), by Wouter Keller, 2022 (holds TIP)
- Trinity Portfolio (Meb Faber), by Mebane Faber, 2016 (holds TIP)
- HAA 60/40 (NLX Finance’s Hybrid Asset Allocation variant), by Nicolas Lequeux (NLX Finance), 2024 (holds TIP)
- Paul Novell’s Tactical Bond Strategy, by Paul Novell, 2014 (holds TIP)
Other funds like SCHP and TIP#
Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: SCHP alternatives and TIP alternatives.
Test a mix of SCHP and TIP#
Open the builder, add SCHP and TIP, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for SCHP and TIP, or see more ETF comparisons.
The details#
Both funds use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund’s first day, so neither gets a head start. Correlation uses daily returns over the same days. Read what a backtest simulates for more on these measures.
Common questions#
What are TIPS?#
Treasury Inflation-Protected Securities are US government bonds whose value is raised with inflation, so what they pay back keeps up with prices.
Can TIPS funds lose money?#
Yes. When interest rates rise, TIPS prices fall like other bonds. Both funds fell in 2022 even though inflation was high.
Which is cheaper, SCHP or TIP?#
SCHP costs less: 0.03% a year against 0.18%. Fees come from each issuer and were checked on October 17, 2026.
Which did better, SCHP or TIP?#
From August 2010 to October 2026, SCHP returned about 2.6% a year and TIP returned about 2.5% a year, with dividends reinvested. Their worst drops were −14.3% and −14.5%. Past returns do not tell you what comes next.