Schwab U.S. TIPS ETF

The Schwab U.S. TIPS ETF is an exchange-traded fund that invests in U.S. Treasury Inflation-Protected Securities (TIPS). Designed to offer protection against inflation, TIPS provide interest payments that adjust based on changes in the Consumer Price Index (CPI). As its primary function, the ETF seeks to deliver investment results that correspond to the price and yield performance of the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index. This index is a benchmark for tracking the performance of TIPS issued by the U.S. Treasury. Notably, the Schwab U.S. TIPS ETF plays a critical role in portfolios wishing to mitigate inflation risk while capturing some level of income. It remains an important allocation option for fixed-income investors seeking a hedge against inflationary pressures within the broader bond market. With its focus on TIPS, the ETF benefits those looking to maintain purchasing power over time, appealing to sectors sensitive to inflation risks.