BABO vs. IBIT

Last updated Jun 13, 2026

BABO (YieldMax BABA Option Income Strategy ETF) and IBIT (iShares Bitcoin Trust ETF) are both exchange-traded funds - BABO is a Derivative Income fund actively managed by YieldMax, while IBIT is a Cryptocurrency fund tracking the CME CF Bitcoin Reference Rate - New York Variant. BABO is actively managed, while IBIT is passively managed. Over the past year, BABO returned -1.50% vs -39.67% for IBIT. At a 0.24 correlation, their price movements are largely independent. BABO charges 0.99%/yr vs 0.25%/yr for IBIT.

Performance

BABO vs. IBIT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax BABA Option Income Strategy ETF (BABO) and iShares Bitcoin Trust ETF (IBIT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BABO achieves a -20.64% return, which is significantly higher than IBIT's -27.41% return.

BABO

• 1D: -0.37%
• 1M: -16.79%
• YTD: -20.64%
• 6M: -24.20%
• 1Y: -1.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IBIT

• 1D: -0.03%
• 1M: -21.94%
• YTD: -27.41%
• 6M: -29.61%
• 1Y: -39.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

BABO vs. IBIT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BABO YieldMax BABA Option Income Strategy ETF	-20.64%	46.84%	0.65%
IBIT iShares Bitcoin Trust ETF	-27.41%	-6.41%	70.09%

Correlation

The correlation between BABO and IBIT is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (All Time) Calculated using the full available price history since Aug 8, 2024	0.24

Return for Risk

BABO vs. IBIT — Risk / Return Rank

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

BABO

BABO Risk / Return Rank: 8
BABO Sharpe Ratio Rank: 8
BABO Sortino Ratio Rank: 9
BABO Omega Ratio Rank: 9
BABO Calmar Ratio Rank: 8
BABO Martin Ratio Rank: 8

IBIT

IBIT Risk / Return Rank: 3
IBIT Sharpe Ratio Rank: 2
IBIT Sortino Ratio Rank: 3
IBIT Omega Ratio Rank: 3
IBIT Calmar Ratio Rank: 3
IBIT Martin Ratio Rank: 2

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.

BABO vs. IBIT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax BABA Option Income Strategy ETF (BABO) and iShares Bitcoin Trust ETF (IBIT). 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.

	BABO	IBIT	Difference
Sharpe ratio: Return per unit of total volatility	-0.12	-0.92	+0.80
Sortino ratio: Return per unit of downside risk	0.08	-1.30	+1.38
Omega ratio: Gain probability vs. loss probability	1.01	0.85	+0.15
Calmar ratio: Return relative to maximum drawdown	-0.13	-0.78	+0.65
Martin ratio: Return relative to average drawdown	-0.28	-1.37	+1.09

BABO vs. IBIT - Sharpe Ratio Comparison

The current BABO Sharpe Ratio is -0.12, which is higher than the IBIT Sharpe Ratio of -0.92. The chart below compares the historical Sharpe Ratios of BABO and IBIT, 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

BABO vs. IBIT - Drawdown Comparison

The maximum BABO drawdown since its inception was -33.33%, smaller than the maximum IBIT drawdown of -52.11%. Use the drawdown chart below to compare losses from any high point for BABO and IBIT.

Drawdown Indicators

	BABO	IBIT	Difference
Max Drawdown Largest peak-to-trough decline	-33.33%	-52.11%	+18.78%
Max Drawdown (1Y) Largest decline over 1 year	-33.33%	-52.11%	+18.78%
Current Drawdown Current decline from peak	-33.33%	-49.45%	+16.12%
Average Drawdown Average peak-to-trough decline	-13.90%	-16.53%	+2.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.34%	29.64%	-14.30%

Volatility

BABO vs. IBIT - Volatility Comparison

The current volatility for YieldMax BABA Option Income Strategy ETF (BABO) is 8.72%, while iShares Bitcoin Trust ETF (IBIT) has a volatility of 12.07%. This indicates that BABO experiences smaller price fluctuations and is considered to be less risky than IBIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BABO	IBIT	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.72%	12.07%	-3.35%
Volatility (6M) Calculated over the trailing 6-month period	24.44%	34.45%	-10.01%
Volatility (1Y) Calculated over the trailing 1-year period	35.33%	44.10%	-8.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.67%	50.26%	-13.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.67%	50.26%	-13.59%

BABO vs. IBIT - Expense Ratio Comparison

BABO has a 0.99% expense ratio, which is higher than IBIT's 0.25% expense ratio.

Dividends

BABO vs. IBIT - Dividend Comparison

BABO's dividend yield for the trailing twelve months is around 98.48%, while IBIT has not paid dividends to shareholders.

Position	TTM	2025	2024
BABO YieldMax BABA Option Income Strategy ETF	98.48%	85.50%	20.65%
IBIT iShares Bitcoin Trust ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BABO and IBIT in my portfolio?

BABO and IBIT have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BABO or IBIT?

IBIT has higher volatility (12.07%) compared to BABO (8.72%). In terms of maximum drawdown, BABO dropped -33.33% vs IBIT's -52.11%.

Which ETF is better, BABO or IBIT?

On 1-year performance, BABO leads with -1.50% vs -39.67% for IBIT. On fees, IBIT is cheaper at 0.25% per year. On volatility, BABO has been the lower-risk option at 8.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BABO or IBIT?

Over the 1-year period, BABO has performed better with a -1.50% return vs -39.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BABO or IBIT?

IBIT is cheaper with a 0.25% expense ratio, compared with 0.99% for BABO.

Which ETF pays a higher dividend yield, BABO or IBIT?

BABO has the higher dividend yield at 98.48%, compared with 0.00% for IBIT.

What is the main difference between BABO and IBIT?

BABO is categorized as Derivative Income, while IBIT is Cryptocurrency. They also come from different issuers: YieldMax and iShares. Their fees differ too: 0.99% for BABO and 0.25% for IBIT.

Which has better risk-adjusted returns?

BABO currently has the higher Sharpe Ratio (-0.12 vs -0.92), 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.