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 -0.02. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
BFFAX vs. TIP - Performance Comparison
Key characteristics
BFFAX:
1.37
TIP:
1.49
BFFAX:
2.03
TIP:
2.07
BFFAX:
1.24
TIP:
1.27
BFFAX:
0.49
TIP:
0.63
BFFAX:
3.51
TIP:
4.47
BFFAX:
2.09%
TIP:
1.56%
BFFAX:
5.35%
TIP:
4.68%
BFFAX:
-19.76%
TIP:
-14.56%
BFFAX:
-8.07%
TIP:
-4.46%
Returns By Period
In the year-to-date period, BFFAX achieves a 2.50% return, which is significantly lower than TIP's 3.73% return.
BFFAX
2.50%
0.21%
2.14%
7.71%
-0.75%
N/A
TIP
3.73%
-0.11%
2.50%
7.08%
1.35%
2.23%
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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 4.62%, more than TIP's 3.03% yield.
| TTM | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | 4.62% | 4.66% | 3.94% | 3.09% | 1.79% | 5.38% | 2.66% | 2.72% | 2.01% | 0.00% | 0.00% | 0.00% |
TIP iShares TIPS Bond ETF | 3.03% | 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) and iShares TIPS Bond ETF (TIP) have volatilities of 2.23% and 2.31%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.