PCPI vs SCHP

PCPIDPIMCO Inflation PLUS Active Exchange-Traded Fund

SCHPASchwab US TIPS ETF

In short

PCPI PIMCO's active answer to the TIPS index crowd: a short-duration core of inflation-linked bonds plus inflation derivatives, with managers free to shift the mix as the inflation picture does.

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

PCPI The fund seeks an inflation-adjusted real return through prudent management. It normally invests at least 80% of net assets in inflation-indexed bonds issued by U.S. and non-U.S. governments, agencies, instrumentalities, and corporations, complemented by inflation-related derivatives and other transactions.

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

• PCPI Active mandate: at least 80% in inflation-indexed bonds from U.S. and non-U.S. governments, agencies and companies, plus inflation-related derivatives.
• Primary exposure runs through short-duration TIPS and inflation breakeven positioning, which keeps interest-rate sensitivity lower than long-dated TIPS portfolios.pimco.com
• Plain 1940 Act ETF plumbing: pays quarterly, no K-1 at tax time.

• 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

• PCPI Costs more than the index trackers that dominate this group: 0.25% net of a waiver through October 31, 2027, against a 0.33% gross fee, versus 0.03% at SCHP and STIP.
• Thinly traded so far, so spreads can run wider than the household-name TIPS funds.
• A 2026 launch, so the record is short, and active calls on breakevens and non-U.S. linkers can wander from a plain TIPS index.

• 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 PCPI profile⁠

Full SCHP profile⁠