“SCHP offers investors a good mix of security and inflation protection. I think this ETF is best viewed as a position to hold long term. However, it can also be used for short term speculation on whether or not the CPI will hit or exceed its targets when the numbers come out. If you are worried that hyper-inflation will be the long term result of the Fed’s dovish policy a security like SCHP will let you rest easier, for this purpose it can be seen as an alternative to gold,” according to a Seeking Alpha analysis of SCHP.
For added cost savings, Schwab clients can trade SCHP on a commission-free basis on the firm’s ETF OneSource platform.
“If economic conditions slow down in the near future, something which is very possible, an investor who is long on an ETF like SCHP could find themselves facing deflation. Deflation is something that would be disastrous for this securities performance and should be kept in mind as a significant risk factor,” adds Seeking Alpha.
Schwab U.S. TIPS ETF
