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schp etf question

edited January 26 in Fund Discussions

Monthly dividends are consistently paid. But when I login to TRP and look at Anticipated Upcoming Cash Flow, there is nothing about SCHP. No mention. Zero Nada. It doesn't project a zero amount. There is NO MENTION AT ALL.

....So..... WTF is up with that? Thanks for helping me out, if you know what's going on.


  • Hi Crash. If you go to and put SCHP in the search tool you will get lots of info. If you scroll down to DISTRIBUTIONS you will see that SCHP went ex date and paid twice in Dec 22. Further digging reveals no Jan. Payout in 2022 as well. Hope that helps.
  • edited January 26
    Ok, I will go and look. Thanks, @larryB. Yes, the double payment in Dec. might explain no payout in January.

    *Edited to add: Yes, I can see what you told me, specifically. The fund does consistently pay monthly--- apart from Jan.

    Logging in to TRP, I can see PROJECTED distributions going out a full year. But SCHP simply does not appear anywhere. Does Schwab simply not communicate with TRP, and vice-versa?
  • @Crash : I took a peek at Yahoo & 2021 a double payment for Dec. & zip-o for Jan..
    Looking further back & you can see what transpired. I wouldn't call it consistent .
  • Derf said:

    @Crash : I took a peek at Yahoo & 2021 a double payment for Dec. & zip-o for Jan..
    Looking further back & you can see what transpired. I wouldn't call it consistent .

    Oh. I guess you mean that the AMOUNTS are not consistent?
  • @Crash Dividends not pd for number of months / year.
    2018 3 not pd
    2019 4 ''
    2020 8 ''
    2021 3 "

    You are correct on amount of dividends also not consistent.
  • edited January 27
    Inflation bonds receive "coupon" from 2 factors: Real Yield embedded in bonds bought + CPI performance. While Real Yield is paid out in Cash, real yields have been low last several years. Negative in fact. On the other hand, CPI led coupons get accumulated as principal in the bond itself and the principal is paid to the bond holder with the CPI accumulation factors.
    Now, when an ETF holds Inflation bonds, on one hand, investors in that ETF expect to be paid a coupon (since they are holding bonds). But on the other hand, the ETF issuer is not receiving much cash. Rather ETF issuer finds principal of the bonds has gone up.
    None of this affects the NAV of Inflation ETFs. But it does impact how cash is paid out to ETF holders.
    ETF issuers might need to actually sell some bonds to generate the cash. or they might wait on bond maturity to generate cash. Life gets complicated when it comes to determining coupon payments and definitely forecasting coupon payments.
    ETF issuers have a lot of latitude in how much and when to pay out.
    Since no one knows what ETF issuers will eventually decide, and since ETF issuer decides individually, projecting coupons may be hard to do.
    But none of this impact NAV. ETF holder can always sell some of the Inflation ETF to generate the cash required.
    Since this triggers taxes in taxable accounts, many investors and advisors prefer not to hold inflation bonds in their portfolios. Inflation bonds are not as liquid as fixed coupon treasuries.
    Sometimes, such product aversion, can create useful sources of returns for investors willing to take on the risk that others dont. It helps that these are US government credit (as long as there is no default).
  • To add to what @Devo said, unlike TIPS held individually, funds are required to distribute inflation-adjustment annually even if that may require selling holdings. Normally, fund inflows & turnover may provide cash for this. But they can decide what to do each month.
  • @Devo : Thanks for your info. Can you tell me what drove the adjusted NAV from $51.22 01/01/2020 to $54.38 at the end of Aug. 2020 as no dividends were paid during this time period.
    Thank you, Derf
  • @Derf, Real Yields on Inflation Bonds went from 0% to -1% and thus the price of bonds went up (yields down = bond prices up). Will try and attach a chart if I can figure out how to do that.
  • email me: [email protected] and I will send you the image file.
  • Grateful that you all stopped to explain. Thank you very much indeed. Inflation is coming down, little by little--- at least statistically. That would be a negative. But the share price has been terribly beaten down. That, by itself, offers a margin of safety. I'm glad to know, now, about why monthly payments may be inconsistent.:)
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