ETF Research and Analysis

by Phillip Yoo
Suitability
Schwab U.S. TIPS ETF SCHP provides broad market exposure to Treasury Inflation-Protected Securities at a low price. It tracks the Bloomberg Barclays U.S. TIPS Index, a market-cap-weighted index that covers TIPS issued by   Read more 

Bull Case

The fund is one of the cheapest TIPS funds available.
TIPS provide protection against unexpected inflation.
This is a good complimentary holding for an equity portfolio given its historically low correlation with 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 

A Cheap Option for TIPS Investors 
Watch more 

Premium Membership

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