IBIG vs SCHP

IBIGBiShares iBonds Oct 2030 Term TIPS ETF

SCHPASchwab US TIPS ETF

In short

IBIG Most target-maturity bond funds hand you a fixed nominal payout. IBIG fills the same dated slot with US Treasury inflation-protected bonds maturing in 2030, so the principal underneath moves with CPI. A ladder rung with an inflation clause.

SCHP Inflation insurance in the plainest wrapper available: SCHP owns the full maturity range of Treasury inflation-protected bonds and tracks its Bloomberg index for three basis points a year.

Stated mandate

IBIG The fund is designed to follow an index of U.S. Treasury inflation-protected securities that mature in 2030.

SCHP The fund seeks to track, before fees and expenses, the total return of an index composed of inflation-protected U.S. Treasury securities.

Why people hold it

• IBIG The inflation-linked corner of a mostly nominal category: it follows the ICE 2030 Maturity US Inflation-Linked Treasury Index, so TIPS principal adjusts with CPI while the maturity year stays fixed.
• 0.10% a year, level with the median target-maturity bond fund, for a portfolio of US Treasury paper. No credit spread, no currency layer.
• Everything inside matures in the same year, so duration winds down as 2030 approaches and the fund stacks cleanly alongside other dated rungs such as IBTJ or BSCU.

• SCHP 0.03% a year, a quarter of the typical Treasury-fund fee and level with the cheapest names in the group (VGIT, VCSH).
• One job, done literally: only inflation-linked US Treasuries, whose principal adjusts with the official consumer price index.
• Running since 2010, now a multi-billion-dollar fund that trades actively and hugs the Bloomberg Series-L index closely.
• Passive, no maturity tilt, no manager view: one of the cleaner builds among Treasury ETFs.

Worth knowing

• IBIG Thinly traded and small next to the nominal iBonds funds. The bid-ask spread is part of what you pay, especially in size.
• Only a handful of TIPS mature in any single year, so this is a short list of bonds, not a broad index.
• Payouts arrive quarterly and ride on inflation adjustments, so they are uneven. When inflation runs cool, nominal Treasuries of the same maturity can out-yield TIPS.

• SCHP Inflation-linked is not rate-proof. This spans the whole maturity spectrum, so prices move with real yields.
• Distributions are irregular. Coupons sit on an inflation-adjusted principal, so the cash arrives lumpy, not as a steady check.
• About 50 bonds, all Uncle Sam. No credit spread, no corporate yield pickup; inflation and duration are the whole story.

Full IBIG profile⁠

Full SCHP profile⁠