AVSC vs. TIP

Last updated Jun 18, 2026

AVSC (Avantis US Small Cap Equity ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - AVSC is a Small Cap Value Equities fund tracking the Russell 2000 Index, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 3 years, AVSC returned 16.83%/yr vs 3.60%/yr for TIP. At a 0.19 correlation, their price movements are largely independent. AVSC charges 0.25%/yr vs 0.18%/yr for TIP.

Performance

AVSC vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis US Small Cap Equity ETF (AVSC) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVSC achieves a 19.48% return, which is significantly higher than TIP's 0.86% return.

AVSC

• 1D: -0.99%
• 1M: 5.07%
• YTD: 19.48%
• 6M: 18.11%
• 1Y: 41.59%
• 3Y*: 16.83%
• 5Y*: —
• 10Y*: —

TIP

• 1D: -0.67%
• 1M: -0.17%
• YTD: 0.86%
• 6M: 0.82%
• 1Y: 3.81%
• 3Y*: 3.60%
• 5Y*: 0.88%
• 10Y*: 2.47%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AVSC vs. TIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
AVSC Avantis US Small Cap Equity ETF	19.48%	9.42%	7.75%	19.68%	-12.40%
TIP iShares TIPS Bond ETF	0.86%	6.77%	1.65%	3.80%	-10.35%

Correlation

The correlation between AVSC and TIP is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (All Time) Calculated using the full available price history since Jan 13, 2022	0.19

Return for Risk

AVSC vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AVSC

AVSC Risk / Return Rank: 81
AVSC Sharpe Ratio Rank: 78
AVSC Sortino Ratio Rank: 80
AVSC Omega Ratio Rank: 71
AVSC Calmar Ratio Rank: 91
AVSC Martin Ratio Rank: 86

TIP

TIP Risk / Return Rank: 34
TIP Sharpe Ratio Rank: 32
TIP Sortino Ratio Rank: 32
TIP Omega Ratio Rank: 30
TIP Calmar Ratio Rank: 40
TIP Martin Ratio Rank: 38

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AVSC vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis US Small Cap Equity ETF (AVSC) and iShares TIPS Bond ETF (TIP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AVSC	TIP	Difference
Sharpe ratio: Return per unit of total volatility	2.30	1.12	+1.18
Sortino ratio: Return per unit of downside risk	3.28	1.69	+1.60
Omega ratio: Gain probability vs. loss probability	1.39	1.20	+0.19
Calmar ratio: Return relative to maximum drawdown	5.30	1.93	+3.36
Martin ratio: Return relative to average drawdown	16.59	5.75	+10.84

AVSC vs. TIP - Sharpe Ratio Comparison

The current AVSC Sharpe Ratio is 2.30, which is higher than the TIP Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of AVSC and TIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AVSC vs. TIP - Drawdown Comparison

The maximum AVSC drawdown since its inception was -28.40%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for AVSC and TIP.

Drawdown Indicators

	AVSC	TIP	Difference
Max Drawdown Largest peak-to-trough decline	-28.40%	-14.57%	-13.83%
Max Drawdown (1Y) Largest decline over 1 year	-7.89%	-1.98%	-5.91%
Max Drawdown (3Y) Largest decline over 3 years	-28.40%	-4.54%	-23.86%
Max Drawdown (5Y) Largest decline over 5 years	—	-14.51%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-14.51%	—
Current Drawdown Current decline from peak	-1.91%	-0.99%	-0.92%
Average Drawdown Average peak-to-trough decline	-7.37%	-3.43%	-3.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.51%	0.66%	+1.85%

Volatility

AVSC vs. TIP - Volatility Comparison

Avantis US Small Cap Equity ETF (AVSC) has a higher volatility of 4.99% compared to iShares TIPS Bond ETF (TIP) at 1.18%. This indicates that AVSC's price experiences larger fluctuations and is considered to be riskier than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVSC	TIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.99%	1.18%	+3.81%
Volatility (6M) Calculated over the trailing 6-month period	11.95%	2.42%	+9.53%
Volatility (1Y) Calculated over the trailing 1-year period	18.17%	3.44%	+14.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.30%	6.20%	+16.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.30%	5.74%	+16.56%

AVSC vs. TIP - Expense Ratio Comparison

AVSC has a 0.25% expense ratio, which is higher than TIP's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

AVSC vs. TIP - Dividend Comparison

AVSC's dividend yield for the trailing twelve months is around 1.22%, less than TIP's 3.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVSC Avantis US Small Cap Equity ETF	1.22%	1.16%	1.17%	1.42%	1.10%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TIP iShares TIPS Bond ETF	3.78%	3.46%	2.52%	2.73%	6.96%	4.28%	1.17%	1.75%	2.71%	2.07%	1.48%	0.34%

Frequently Asked Questions

Can I hold both AVSC and TIP in my portfolio?

AVSC and TIP have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVSC or TIP?

AVSC has higher volatility (4.99%) compared to TIP (1.18%). In terms of maximum drawdown, AVSC dropped -28.40% vs TIP's -14.57%.

Which ETF is better, AVSC or TIP?

On 3-year performance, AVSC leads with 16.83% vs 3.60% for TIP. On fees, TIP is cheaper at 0.18% per year. On volatility, TIP has been the lower-risk option at 1.18%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVSC or TIP?

Over the 3-year period, AVSC has performed better with a 16.83% return vs 3.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVSC or TIP?

TIP is cheaper with a 0.18% expense ratio, compared with 0.25% for AVSC.

Which ETF pays a higher dividend yield, AVSC or TIP?

TIP has the higher dividend yield at 3.78%, compared with 1.22% for AVSC.

What is the main difference between AVSC and TIP?

AVSC is categorized as Small Cap Value Equities, while TIP is Inflation-Protected Bonds. AVSC tracks Russell 2000 Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: Avantis and iShares. Their fees differ too: 0.25% for AVSC and 0.18% for TIP.

Which has better risk-adjusted returns?

AVSC currently has the higher Sharpe Ratio (2.30 vs 1.12), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.