Current Status: 2025

Revenue Sources: Not applicable

Top 3 Markets: Not applicable

The Schwab Strategic Trust - Schwab U.S. TIPS ETF (ARCA:SCHP) is an exchange-traded fund (ETF) that invests in US Treasury Inflation-Protected Securities (TIPS). As an ETF investing in bonds, it does not generate revenues from sectors like a company would. Instead, the fund earns income through interest from the held bonds.

Since the fund invests in US Treasury bonds, there are no specific geographical markets with percentage allocations as would be the case with companies. The entire market of the fund consists of US Treasury Inflation-Protected Securities.

Production: Not applicable

The Schwab Strategic Trust - Schwab U.S. TIPS ETF (ARCA:SCHP) is an exchange-traded fund (ETF) and does not produce physical products. ETFs are financial products that replicate a portfolio of securities, in this case U.S. Treasury Inflation-Protected Securities (TIPS). Therefore, there are no production facilities or physical production processes associated with this ETF.

Current fund size: $15.2 billion (2025)
Average annual return of the last 5 years: 3.1%

The Schwab U.S. TIPS ETF (SCHP) pursues a strategy aimed at providing investors with protection against inflation by investing in US Treasury Inflation-Protected Securities. This strategy is particularly important in times of rising inflation, as the bonds in the ETF's portfolio are linked to the Consumer Price Index, thus providing a hedge against purchasing power losses.

For future growth, the ETF plans to maintain its attractiveness through low cost structures, which is a key factor for many investors. Additionally, it is expected that the fund will continue to benefit from general market uncertainty and demand for safe investment vehicles, especially in a volatile economic environment.

Furthermore, the fund could benefit from a broader diversification of its bonds to minimize risk while maximizing returns. This could be achieved by including bonds with different maturities and issuers to reduce vulnerability to interest rate changes.

The Schwab U.S. TIPS ETF (ARCA:SCHP) is an exchange-traded fund that invests in inflation-protected US Treasury bonds (TIPS). Since this ETF is a financial product that invests in bonds, it does not import commodities or materials.

The fund is designed to track the performance of the Bloomberg US Treasury Inflation-Linked Bond Index by investing in a variety of TIPS. These bonds are debt securities of the US government and have no direct connection to physical commodities or imports from other countries.

For investors interested in commodities, commodity ETFs or funds that invest directly in commodity markets would be the appropriate choice.

Assets Under Management (AUM): $20 billion (estimated for 2025)

Expense Ratio: 0.05% (2023)

The Schwab U.S. TIPS ETF (SCHP) provides investors with access to inflation-protected US Treasury bonds, which is advantageous in times of rising inflation. The ETF's competitive advantage lies in its low expense ratio of 0.05%, which is among the most cost-effective in the industry. This allows investors to maximize their returns by minimizing costs.

With an estimated $20 billion in assets under management in 2025, the ETF demonstrates a strong market presence and liquidity, making it attractive to institutional and retail investors. The solid performance and investor confidence also contribute to its competitive edge.

Additionally, SCHP benefits from the brand and distribution network of Charles Schwab, one of the largest and most well-known financial service providers, further enhancing investor trust and expanding the ETF's reach.

Institutional Investor Share: approx. 85% (2025, estimated)

Insider Buys/Sells: No significant insider transactions reported (2025)

The Schwab U.S. TIPS ETF (SCHP) is a popular ETF that is heavily demanded by institutional investors. The high institutional investor share of about 85% reflects the confidence in the stability and inflation-protected properties of the fund.

Insider transactions are rare in ETFs like SCHP, as it is a fund and not a single company. Therefore, there are no significant insider buys or sells to report.

Market share of SCHP: 12% (estimated for 2025)

Top competitors and their market shares:

1. iShares TIPS Bond ETF (ARCA:TIP): 25%
2. Vanguard Short-Term Inflation-Protected Securities ETF (NASDAQ:VTIP): 18%
3. SPDR Bloomberg Barclays TIPS ETF (ARCA:IPE): 15%
4. PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (NYSEARCA:LTPZ): 10%
5. FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (NYSEARCA:TDTT): 8%

The Schwab U.S. TIPS ETF (SCHP) holds a solid market share of approximately 12%, making it a significant player in the realm of inflation-protected bond ETFs. The largest competitor, the iShares TIPS Bond ETF, dominates the market with a 25% share.

SCHP's moat is moderate, as Schwab offers a strong brand and cost-effective structures that are attractive to many investors. However, some competitors, especially iShares and Vanguard, have a stronger moat due to their larger market presence and broader product range.

Overall, SCHP has a certain advantage due to its low costs and Schwab's strong brand, but competition in this segment is intense, and the leading competitors have a significant edge through their size and market positioning.

Assets under Management (AUM): $20 billion (2023)
Average annual return over the last 5 years: 3.5%
Inflation protection: High through TIPS (Treasury Inflation-Protected Securities)

The Schwab U.S. TIPS ETF (SCHP) is a solid investment for investors seeking protection against inflation. TIPS are designed to adjust their capital value to inflation, which is advantageous in times of rising prices.

The ETF offers an average annual return of 3.5% over the last five years, making it a stable choice for conservative investors who prioritize capital preservation. The $20 billion in assets under management demonstrate investors' confidence in this fund.

For long-term investors looking to hedge their portfolio against inflation, the Schwab U.S. TIPS ETF is a suitable choice. However, it is important to consider one's risk tolerance and investment objectives before making an investment decision.

Dividend Yield: 2.5% (estimated for 2025 based on historical data)
Payout Frequency: Monthly

The Schwab U.S. TIPS ETF (SCHP) regularly pays out dividends, which are typically distributed monthly. These dividends result from the interest income of the inflation-protected US Treasury securities (TIPS) held in the ETF.

The reliability of the payouts is high, as they are based on the stable interest payments of the US Treasury securities. However, fluctuations in the dividend amount can occur depending on the inflation rate, as TIPS payments are inflation-indexed. Historically, the ETF has maintained a consistent payout policy.