In the truest German sense, this is a distilled brandy (or “eau de vie”) distilled from Peaches. Most common today, though, is grain or potato-based alcohol with added peach flavouring.
Genuine Peach Schnapps will be dry-tasting, not sweet. But then, it would probably be wasted on what seem to be the popular uses for Peach Schnapps, which are mixed drinks called “Fuzzy Navels”, and high school dances outside behind the gym.