BCLO vs. STIP

Last updated Jun 24, 2026

BCLO (iShares BBB-B CLO Active ETF) and STIP (iShares 0-5 Year TIPS Bond ETF) are both exchange-traded funds - BCLO is a CLO fund tracking the JP Morgan CLOIE High Quality Mezzanine Index, while STIP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). Both are passively managed. Over the past year, BCLO returned 6.85% vs 3.58% for STIP. At a correlation of -0.06, they often move in opposite directions. BCLO charges 0.45%/yr vs 0.06%/yr for STIP.

Performance

BCLO vs. STIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares BBB-B CLO Active ETF (BCLO) and iShares 0-5 Year TIPS Bond ETF (STIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BCLO achieves a 3.08% return, which is significantly higher than STIP's 1.34% return.

BCLO

• 1D: 0.12%
• 1M: 0.53%
• YTD: 3.08%
• 6M: 3.11%
• 1Y: 6.85%
• 3Y*: —
• 5Y*: —
• 10Y*: —

STIP

• 1D: 0.01%
• 1M: -0.29%
• YTD: 1.34%
• 6M: 1.51%
• 1Y: 3.58%
• 3Y*: 4.99%
• 5Y*: 3.28%
• 10Y*: 3.07%

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

BCLO vs. STIP - Yearly Performance Comparison

	2026 (YTD)	2025
BCLO iShares BBB-B CLO Active ETF	3.08%	5.41%
STIP iShares 0-5 Year TIPS Bond ETF	1.34%	5.25%

Correlation

The correlation between BCLO and STIP is -0.14, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.14
Correlation (All Time) Calculated using the full available price history since Jan 30, 2025	-0.06

Return for Risk

BCLO vs. STIP — Risk / Return Rank

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

BCLO

BCLO Risk / Return Rank: 87
BCLO Sharpe Ratio Rank: 95
BCLO Sortino Ratio Rank: 96
BCLO Omega Ratio Rank: 97
BCLO Calmar Ratio Rank: 75
BCLO Martin Ratio Rank: 75

STIP

STIP Risk / Return Rank: 85
STIP Sharpe Ratio Rank: 77
STIP Sortino Ratio Rank: 86
STIP Omega Ratio Rank: 84
STIP Calmar Ratio Rank: 88
STIP Martin Ratio Rank: 88

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.

BCLO vs. STIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares BBB-B CLO Active ETF (BCLO) and iShares 0-5 Year TIPS Bond ETF (STIP). 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.

	BCLO	STIP	Difference
Sharpe ratio: Return per unit of total volatility	3.43	2.34	+1.08
Sortino ratio: Return per unit of downside risk	5.45	3.68	+1.77
Omega ratio: Gain probability vs. loss probability	1.91	1.48	+0.42
Calmar ratio: Return relative to maximum drawdown	3.59	4.96	-1.37
Martin ratio: Return relative to average drawdown	13.26	18.20	-4.94

BCLO vs. STIP - Sharpe Ratio Comparison

The current BCLO Sharpe Ratio is 3.43, which is higher than the STIP Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of BCLO and STIP, 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

BCLO vs. STIP - Drawdown Comparison

The maximum BCLO drawdown since its inception was -4.45%, smaller than the maximum STIP drawdown of -5.50%. Use the drawdown chart below to compare losses from any high point for BCLO and STIP.

Drawdown Indicators

	BCLO	STIP	Difference
Max Drawdown Largest peak-to-trough decline	-4.45%	-5.50%	+1.05%
Max Drawdown (1Y) Largest decline over 1 year	-1.92%	-0.73%	-1.19%
Max Drawdown (3Y) Largest decline over 3 years	—	-0.95%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-5.50%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-5.50%	—
Current Drawdown Current decline from peak	0.00%	-0.72%	+0.72%
Average Drawdown Average peak-to-trough decline	-0.39%	-0.99%	+0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	0.20%	+0.32%

Volatility

BCLO vs. STIP - Volatility Comparison

The current volatility for iShares BBB-B CLO Active ETF (BCLO) is 0.23%, while iShares 0-5 Year TIPS Bond ETF (STIP) has a volatility of 0.64%. This indicates that BCLO experiences smaller price fluctuations and is considered to be less risky than STIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BCLO	STIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.23%	0.64%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	1.63%	1.14%	+0.49%
Volatility (1Y) Calculated over the trailing 1-year period	2.01%	1.53%	+0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.31%	2.74%	+1.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.31%	2.46%	+1.85%

BCLO vs. STIP - Expense Ratio Comparison

BCLO has a 0.45% expense ratio, which is higher than STIP's 0.06% expense ratio.

Dividends

BCLO vs. STIP - Dividend Comparison

BCLO's dividend yield for the trailing twelve months is around 6.57%, more than STIP's 4.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BCLO iShares BBB-B CLO Active ETF	6.57%	6.45%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
STIP iShares 0-5 Year TIPS Bond ETF	4.33%	4.11%	2.62%	2.84%	6.04%	4.15%	1.40%	2.06%	2.44%	1.59%	0.89%

Frequently Asked Questions

Can I hold both BCLO and STIP in my portfolio?

BCLO and STIP have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BCLO or STIP?

STIP has higher volatility (0.64%) compared to BCLO (0.23%). In terms of maximum drawdown, BCLO dropped -4.45% vs STIP's -5.50%.

Which ETF is better, BCLO or STIP?

On 1-year performance, BCLO leads with 6.85% vs 3.58% for STIP. On fees, STIP is cheaper at 0.06% per year. On volatility, BCLO has been the lower-risk option at 0.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BCLO or STIP?

Over the 1-year period, BCLO has performed better with a 6.85% return vs 3.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BCLO or STIP?

STIP is cheaper with a 0.06% expense ratio, compared with 0.45% for BCLO.

Which ETF pays a higher dividend yield, BCLO or STIP?

BCLO has the higher dividend yield at 6.57%, compared with 4.33% for STIP.

What is the main difference between BCLO and STIP?

BCLO is categorized as CLO, while STIP is Inflation-Protected Bonds. BCLO tracks JP Morgan CLOIE High Quality Mezzanine Index, while STIP tracks Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). Their fees differ too: 0.45% for BCLO and 0.06% for STIP.

Which has better risk-adjusted returns?

BCLO currently has the higher Sharpe Ratio (3.43 vs 2.34), 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.