BFFAX vs. TIP
Compare and contrast key facts about American Funds The Bond Fund of America Class F-3 (BFFAX) and iShares TIPS Bond ETF (TIP).
BFFAX is managed by American Funds. It was launched on May 28, 1974. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BFFAX or TIP.
Correlation
The correlation between BFFAX and TIP is 0.77, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
BFFAX vs. TIP - Performance Comparison
Key characteristics
BFFAX:
0.90
TIP:
1.15
BFFAX:
1.31
TIP:
1.62
BFFAX:
1.16
TIP:
1.20
BFFAX:
0.32
TIP:
0.45
BFFAX:
2.23
TIP:
3.23
BFFAX:
2.13%
TIP:
1.55%
BFFAX:
5.29%
TIP:
4.34%
BFFAX:
-19.76%
TIP:
-14.56%
BFFAX:
-9.48%
TIP:
-6.04%
Returns By Period
In the year-to-date period, BFFAX achieves a 0.93% return, which is significantly lower than TIP's 2.02% return.
BFFAX
0.93%
0.93%
-0.58%
4.84%
-0.36%
N/A
TIP
2.02%
1.34%
0.46%
5.07%
1.57%
2.21%
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BFFAX vs. TIP - Expense Ratio Comparison
BFFAX has a 0.20% expense ratio, which is higher than TIP's 0.19% 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%.
Risk-Adjusted Performance
BFFAX vs. TIP — Risk-Adjusted Performance Rank
BFFAX
TIP
BFFAX vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds The Bond Fund of America Class F-3 (BFFAX) 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.
Dividends
BFFAX vs. TIP - Dividend Comparison
BFFAX's dividend yield for the trailing twelve months is around 4.66%, more than TIP's 2.47% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | 4.66% | 4.68% | 3.95% | 3.09% | 1.79% | 2.21% | 2.66% | 2.73% | 2.01% | 0.00% | 0.00% | 0.00% |
TIP iShares TIPS Bond ETF | 2.47% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% |
Drawdowns
BFFAX vs. TIP - Drawdown Comparison
The maximum BFFAX drawdown since its inception was -19.76%, which is greater than TIP's maximum drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for BFFAX and TIP. For additional features, visit the drawdowns tool.
Volatility
BFFAX vs. TIP - Volatility Comparison
American Funds The Bond Fund of America Class F-3 (BFFAX) has a higher volatility of 1.38% compared to iShares TIPS Bond ETF (TIP) at 1.23%. This indicates that BFFAX'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.