SCHP — Schwab US TIPS ETF
Charles Schwab · Expense Ratio: 0.04% · Inflation Protected · 4bp below the Inflation Protected category average of 0.08%
Key Facts
| Ticker | SCHP |
| Full Name | Schwab US TIPS ETF |
| Provider | Charles Schwab |
| Expense Ratio | 0.04% |
| Category | Inflation Protected |
| Assets Under Management | $15B |
| Inception Year | 2009 (17 years ago) |
| Number of Holdings | 50 |
| Dividend Yield | ~3.4% (high) |
| Top Holdings | TIPS 5yr, TIPS 10yr, TIPS 30yr |
What Is SCHP?
SCHP, managed by Charles Schwab, launched in 2009, is a well-established ETF with adequate liquidity for most investors in the Inflation Protected category. Inflation-protected bond ETF investing in TIPS and other inflation-linked securities. With $15B in assets under management, it has adequate trading volume for most individual investors.
SCHP in a FIRE Portfolio
TIPS protect your portfolio's purchasing power against inflation — critical for FIRE investors with 30-50 year retirement horizons where inflation is the silent killer.
Inflation is the biggest risk for FIRE investors with 30-50 year retirements. TIPS funds like SCHP adjust their principal with CPI, ensuring your purchasing power keeps pace with rising prices over decades.
Cost Analysis: How SCHP's 0.04% Fee Affects Your FIRE Timeline
At 0.04%, SCHP is in the ultra-low-cost tier. On a $100,000 investment, you pay just $40/year in fees. Over 30 years, the fee drag is approximately less than 1% of your total returns — essentially negligible for FIRE planning. This is about as close to "free" as ETFs get.
Dividend Income Potential
With a high dividend yield of approximately 3.4%, here's what SCHP could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $3,400/year | $283/month |
| $250,000 | $8,500/year | $708/month |
| $500,000 | $17,000/year | $1,417/month |
| $1,000,000 | $34,000/year | $2,833/month |
Frequently Asked Questions About SCHP
What is the expense ratio for SCHP?
SCHP has an expense ratio of 0.04%. This is ultra-low-cost — on a $100K portfolio, annual fees are $40. 4bp below the inflation protected category average of 0.08%.
Is SCHP good for a FIRE portfolio?
TIPS protect your portfolio's purchasing power against inflation — critical for FIRE investors with 30-50 year retirement horizons where inflation is the silent killer. Its 0.04% expense ratio is ultra-low-cost for the Inflation Protected category.
How does the 0.04% fee affect long-term returns?
At 0.04%, the fee impact is minimal — less than $50/year on a $100K portfolio. Over a 30-year FIRE timeline, the cumulative fee drag is under 1% of total returns, making SCHP an extremely efficient choice.
Is SCHP liquid enough for my portfolio?
SCHP manages $15B in assets — a well-established ETF with adequate liquidity for most investors. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.
Similar ETFs in Inflation Protected
- TIP — iShares TIPS Bond ETF (0.19% · Portfolio Hedge)
- VTIP — Vanguard Short-Term Inflation-Protected Securities ETF (0.04% · Portfolio Hedge)
- STIP — iShares 0-5 Year TIPS Bond ETF (0.03% · Portfolio Hedge)