BFFAX vs. TIP
BFFAX (American Funds The Bond Fund of America Class F-3) and TIP (iShares TIPS Bond ETF) are both funds - BFFAX is a Intermediate Core Bond fund managed by American Funds, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Over the past 5 years, BFFAX returned 0.08%/yr vs 0.97%/yr for TIP. A 0.77 correlation means they provide meaningful diversification when combined. BFFAX charges 0.20%/yr vs 0.18%/yr for TIP.
Performance
BFFAX vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, BFFAX achieves a 0.24% return, which is significantly lower than TIP's 1.54% return.
BFFAX
- 1D
- 0.00%
- 1M
- 0.47%
- YTD
- 0.24%
- 6M
- 0.18%
- 1Y
- 5.40%
- 3Y*
- 4.04%
- 5Y*
- 0.08%
- 10Y*
- —
TIP
- 1D
- -0.18%
- 1M
- -0.09%
- YTD
- 1.54%
- 6M
- 1.06%
- 1Y
- 4.96%
- 3Y*
- 3.88%
- 5Y*
- 0.97%
- 10Y*
- 2.57%
BFFAX vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | 0.24% | 7.54% | 1.54% | 4.39% | -13.00% | -0.97% | 11.12% | 8.17% | 0.22% | 3.07% |
TIP iShares TIPS Bond ETF | 1.54% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.22% |
Correlation
The correlation between BFFAX and TIP is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.85 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Feb 2, 2017 | 0.77 |
The correlation between BFFAX and TIP has been stable across timeframes, ranging from 0.77 to 0.85 - a consistent structural relationship.
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Return for Risk
BFFAX vs. TIP — Risk / Return Rank
BFFAX
TIP
BFFAX vs. TIP - Risk-Adjusted Trends 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.
| BFFAX | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.09 | ||
| Sortino ratioReturn per unit of downside risk | -0.16 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.26 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.76 | 2.52 | -0.76 |
| Martin ratioReturn relative to average drawdown | 5.27 | 7.57 | -2.30 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| BFFAX | TIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.37 | 1.46 | -0.09 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.01 | 0.16 | -0.14 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.45 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.44 | 0.57 | -0.14 |
Drawdowns
BFFAX vs. TIP - Drawdown Comparison
The maximum BFFAX drawdown since its inception was -17.74%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for BFFAX and TIP.
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Drawdown Indicators
| BFFAX | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.74% | -14.57% | -3.17% |
Max Drawdown (1Y)Largest decline over 1 year | -3.08% | -1.98% | -1.10% |
Max Drawdown (3Y)Largest decline over 3 years | -6.10% | -4.54% | -1.56% |
Max Drawdown (5Y)Largest decline over 5 years | -17.74% | -14.51% | -3.23% |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.51% | — |
Current DrawdownCurrent decline from peak | -1.56% | -0.32% | -1.24% |
Average DrawdownAverage peak-to-trough decline | -4.69% | -3.43% | -1.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.03% | 0.66% | +0.37% |
Volatility
BFFAX vs. TIP - Volatility Comparison
American Funds The Bond Fund of America Class F-3 (BFFAX) has a higher volatility of 1.40% compared to iShares TIPS Bond ETF (TIP) at 0.89%. 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.
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Volatility by Period
| BFFAX | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.40% | 0.89% | +0.51% |
Volatility (6M)Calculated over the trailing 6-month period | 2.84% | 2.29% | +0.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.97% | 3.41% | +0.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.96% | 6.21% | -0.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.99% | 5.74% | -0.75% |
BFFAX vs. TIP - Expense Ratio Comparison
BFFAX has a 0.20% 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
BFFAX vs. TIP - Dividend Comparison
BFFAX's dividend yield for the trailing twelve months is around 4.50%, more than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | 4.50% | 4.48% | 4.67% | 3.28% | 2.46% | 1.98% | 5.38% | 3.80% | 2.72% | 2.01% | 0.00% | 0.00% |
TIP iShares TIPS Bond ETF | 3.76% | 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
BFFAX and TIP have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BFFAX has higher volatility (1.40%) compared to TIP (0.89%). In terms of maximum drawdown, BFFAX dropped -17.74% vs TIP's -14.57%.
TIP currently has the higher Sharpe Ratio (1.46 vs 1.37), 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.
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