SCHP

The Schwab U.S. TIPS ETF (SCHP) is an exchange-traded fund designed to track the performance of an index composed of Treasury Inflation-Protected Securities (TIPS) issued by the U.S. Treasury. The ETF is managed by Charles Schwab Investment Management, Inc. and trades under the ticker SCHP on NYSE Arca.

Classified as a fixed-income ETF with exclusive exposure to U.S. government inflation-protected securities, SCHP seeks to reflect, before fees and expenses, the price and yield performance of its benchmark index.

The fund follows a passive management strategy, replicating the Bloomberg U.S. Treasury Inflation-Linked Bond Index (Series-L), which consists of U.S. dollar-denominated TIPS adjusted according to changes in the Consumer Price Index (CPI).

Composition / Exposure profile

SCHP provides exposure to the U.S. Treasury inflation-protected securities market across different maturities, including:

• Short-term inflation-protected Treasury securities.

• Medium-term inflation-protected Treasury securities.

• Long-term inflation-protected Treasury securities.

This structure seeks to preserve purchasing power over time and reflect market inflation expectations.

Structure and costs

SCHP shares trade on the secondary market on NYSE Arca during regular trading hours. Creation and redemption occur through authorized participants, helping maintain alignment between market price and net asset value.

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. SCHP trades exclusively under the ticker SCHP.

History and evolution of the ETF

The Schwab U.S. TIPS ETF was launched in 2010, during a period of increased demand for inflation-protection instruments within the U.S. fixed-income market.

Since inception, the fund has been used by institutional and individual investors seeking to preserve purchasing power and reduce inflation risk exposure.

In recent years, SCHP has reflected post-pandemic inflationary pressures, Federal Reserve policy cycles, and movements in real interest rates, while maintaining its passive index-tracking strategy.

Additional Information

Schwab U.S. TIPS ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $15.63 Billions.

Over the past 12 months, Schwab U.S. TIPS ETF recorded a return of 4.85%, with its price trading between $26.25 and $27.15 during the same period.

The ETF is traded under the ticker SCHP.