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Schwab U.S. TIPS ETF rated strong buy due to attractive yields and inflation protection setup.

Analyst Insights
15 Apr 2026
Seeking Alpha
View Source
Bullish
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The Schwab U.S. TIPS ETF (SCHP) is recommended as a strong buy, offering a 4.74% SEC yield and 3.89% yield to maturity with monthly inflation adjustments and low fees. Current real yields near 1.94% present a rare opportunity for investors, with historical trends suggesting potential yield declines and attractive total returns. Risks include aggressive Federal Reserve rate cuts or a resurgence in inflation, but SCHP's structure and macroeconomic environment provide a compelling risk/reward balance for fixed income portfolios. Investors should consider tax implications and interest rate risks associated with TIPS before investing.

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