ETF Research and Analysis

by Phillip Yoo, CAIA
Suitability
Schwab US TIPS ETF SCHP is a compelling, low-cost option for broad market-cap exposure to Treasury Inflation-Protected Securities. It earns a Morningstar Analyst Rating of Silver.
The fund tracks the market-cap-weighted   Read more 

Bull Case

This is one of the cheapest TIPS funds available.
TIPS provide protection against unexpected inflation.
This is a good complementary holding for an equity portfolio given its historically low correlation with the S&P 500. Read more 

Bear Case

If inflation is below expectations, the fund will likely underperform non-inflation-protected U.S. Treasuries.
This portfolio has greater than average exposure to interest-rate risk.
Because the underlying index is market-cap-weighted and does not target a specific maturity, the fund's duration can change over time.  Read more 

Ben Johnson's Favorite ETFs for IRAs  
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.