TIPS ETFs are funds that hold Treasury Inflation-Protected Securities. These are government bonds designed to safeguard against inflation by adjusting their principal value according to changes in the Consumer Price Index. Both SCHP and VTIP offer exposure to these securities. Unlike corporate bonds, TIPS carry minimal credit risk, focusing instead on inflation-linked returns. Investors use them primarily to preserve purchasing power.

How do duration differences affect TIPS ETFs?

Duration measures a bond's sensitivity to interest rate changes. SCHP tracks the broader US TIPS market, encompassing various maturities, while VTIP restricts its focus exclusively to short-term instruments. Generally, longer-duration funds experience greater price volatility when interest rates fluctuate compared to shorter-duration options. VTIP's targeted maturity reduces this potential sensitivity, offering a more concentrated short-term exposure, whereas SCHP provides a comprehensive market snapshot with a wider range of maturities.

Are the expense ratios for SCHP and VTIP identical?

Both SCHP and VTIP feature an annual expense ratio of 0.03 percent. This exact alignment means the stated fee difference is zero percentage points. Since fees directly reduce the theoretical return, identical low costs ensure neither fund offers an expense-based advantage. For investors, this parity shifts the focus to structural differences, such as the maturity ranges and dividend yields, which vary significantly between the two funds.

How do the dividend yields compare?

SCHP provides a dividend yield of 5.02 percent, whereas VTIP offers a lower yield of 4.18 percent. ETFs distribute income generated from the underlying assets to shareholders. This disparity arises from varying bond coupons and maturities within their specific portfolios. While SCHP's higher yield may provide greater periodic income, the total return also depends on price performance. Distributions are typically paid quarterly.

Do SCHP and VTIP have overlapping top holdings?

The top-10 holdings for SCHP and VTIP are not available for review, but available data confirms there are no shared top-10 holdings. This lack of overlap reflects their different structural mandates. SCHP targets the broader US TIPS market with various maturities, while VTIP restricts itself exclusively to short-term securities. This divergence allows investors to access distinct segments of the inflation-protected bond market.

What does fund size indicate for these ETFs?

Fund size influences trading liquidity and operational efficiency. VTIP possesses $20.8 billion in net assets, compared to SCHP's $16.1 billion. While SCHP's asset base is smaller, both represent significant scale and liquidity. Larger asset bases generally allow funds to operate more efficiently and facilitate smoother trading. However, both funds currently carry minimal expenses, ensuring operational costs remain a negligible factor for their investors.

How does inception date impact fund comparison?

SCHP launched on 5 August 2010, whereas VTIP started trading on 12 October 2012. SCHP offers a slightly longer track record by approximately two years, allowing for a broader historical comparison across various market cycles. While a longer history provides more data points, the fund's structural characteristics and duration focus remain the primary differentiators rather than the launch dates themselves.

What indices do these funds track?

The specific indices tracked by both SCHP and VTIP are currently not available for review. Nevertheless, SCHP focuses on the broader US TIPS market across various maturities, while VTIP targets only short-term inflation-protected securities. Since the precise index names are unavailable, investors must rely on these descriptions to understand how the funds' distinct maturity targets shape their respective portfolio compositions.

What investing goals might each fund suit?

SCHP is typically associated with broader inflation hedging across the entire US TIPS spectrum. Investors seeking comprehensive exposure to various maturities and a higher current dividend yield of 5.02 percent might find this suitable. Conversely, VTIP aligns with objectives focused on shorter-duration inflation protection, offering a 4.18 percent yield. These general characteristics describe the funds' structural aims without providing specific recommendations for portfolio allocation.

What are the educational limitations of this comparison?

Certain data, including the specific indices tracked, top-10 holdings, and sector weights, are currently not available for review. This comparison relies exclusively on Yahoo Finance data as of 22 September 2026. Investors must acknowledge these gaps when evaluating the funds. Educational content, not financial advice.

SCHP vs VTIP

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Schwab U.S. TIPS ETF and Vanguard Short-Term Inflation-Protected Secs ETF. This page reviews their fees, holdings, dividends and how each fund tracks its market. Both have 0.03% expense ratios, but they focus on different durations of TIPS securities. Explore their differences to understand these options better. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

SCHP

Metric

VTIP

0.03%

Expense Ratio

0.03%

5.02%

Dividend Yield

4.18%

$16.11B

Net Assets

$20.75B

Holdings

Aug 5, 2010

Inception Date

Oct 12, 2012

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Index Tracked

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Inflation-Protected Bond

Fund Category

Short-Term Inflation-Protected Bond

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

SCHP

Pros

Schwab's fund carries a low expense ratio of 0.03 percent.
The fund offers a dividend yield of 5.02 percent.
It provides broader exposure to US TIPS markets.

Considerations

The fund holds $16.1 billion, smaller than Vanguard's equivalent fund.
Inception in 2010 offers a shorter track record than some competitors.
The specific index tracked is currently not available for review.

VTIP

Pros

Vanguard's fund carries a competitive expense ratio of 0.03 percent.
The fund's net assets stand at $20.8 billion, indicating significant scale.
It launched in 2012, offering a longer track record than newer funds.

Considerations

The dividend yield is 4.18 percent, lower than the Schwab fund.
The fund is limited to short-term maturities, reducing potential interest rate sensitivity.
Information regarding the specific index tracked is currently not available.

About SCHP and VTIP

SCHP (SCHP)

The Schwab U.S. TIPS ETF is designed to help investors protect purchasing power against inflation by holding Treasury Inflation-Protected Securities (TIPS). These U.S. government bonds adjust their principal value based on changes in the Consumer Price Index (CPI), offering a potential hedge against rising prices. With a low expense ratio of 0.03% and substantial net assets of USD 16.11 billion, this fund provides broad exposure to the inflation-protected bond market. Since its inception in August 2010, it has maintained a dividend yield of approximately 5.02%, reflecting current interest rates and inflation expectations. Investors should note that while TIPS generally offer safety relative to equities, their value can fluctuate with interest rates, and returns are not guaranteed.

VTIP (VTIP)

The Vanguard Short-Term Inflation-Protected Securities ETF is designed to offer investors exposure to US Treasury Inflation-Protected Securities (TIPS) with a short duration. By focusing on bonds maturing in roughly less than five years, this fund aims to help mitigate the eroding effects of inflation on capital while providing a relatively stable income stream. It seeks to track a specific benchmark index of investment-grade, fixed-income, inflation-indexed bonds issued by the US Government. With a very low expense ratio of 0.03%, it is an affordable option for those looking to diversify their bond portfolios. While the underlying securities are guaranteed by the US government, the value of the fund's shares can fluctuate due to changes in real interest rates and market conditions. This asset class is often viewed as a defensive holding during periods of rising prices, though it may not match the growth potential of equities. Investors should consider their risk tolerance and investment horizon, as short-term bond returns are subject to market variability.

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SCHP vs VTIP

Fund Snapshot