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.
Performance
BFFAX vs. TIP - Performance Comparison
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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 | -0.53% | 7.54% | 1.54% | 4.39% | -13.00% | -0.97% | 11.12% | 8.17% | 0.22% | 3.07% |
TIP iShares TIPS Bond ETF | 0.41% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.22% |
Returns By Period
In the year-to-date period, BFFAX achieves a -0.53% return, which is significantly lower than TIP's 0.41% return.
BFFAX
- 1D
- 0.27%
- 1M
- -1.74%
- YTD
- -0.53%
- 6M
- 0.32%
- 1Y
- 3.72%
- 3Y*
- 3.29%
- 5Y*
- 0.06%
- 10Y*
- —
TIP
- 1D
- 0.00%
- 1M
- -1.08%
- YTD
- 0.41%
- 6M
- 0.15%
- 1Y
- 2.76%
- 3Y*
- 2.98%
- 5Y*
- 1.24%
- 10Y*
- 2.49%
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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%.
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 | 0.92 | 0.67 | +0.25 |
Sortino ratioReturn per unit of downside risk | 1.32 | 0.93 | +0.40 |
Omega ratioGain probability vs. loss probability | 1.16 | 1.12 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 1.56 | 1.03 | +0.53 |
Martin ratioReturn relative to average drawdown | 4.48 | 2.99 | +1.48 |
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 | 0.92 | 0.67 | +0.25 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.01 | 0.20 | -0.19 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.43 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.43 | 0.57 | -0.14 |
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.
Dividends
BFFAX vs. TIP - Dividend Comparison
BFFAX's dividend yield for the trailing twelve months is around 4.12%, more than TIP's 2.80% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BFFAX American Funds The Bond Fund of America Class F-3 | 4.12% | 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 | 2.80% | 3.46% | 2.52% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% |
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 | -2.94% | -2.74% | -0.20% |
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 | -2.32% | -1.36% | -0.96% |
Average DrawdownAverage peak-to-trough decline | -4.74% | -3.46% | -1.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.02% | 0.94% | +0.08% |
Volatility
BFFAX vs. TIP - Volatility Comparison
American Funds The Bond Fund of America Class F-3 (BFFAX) has a higher volatility of 1.49% compared to iShares TIPS Bond ETF (TIP) at 1.41%. 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 | 1.49% | 1.41% | +0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 2.49% | 2.35% | +0.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.40% | 4.15% | +0.25% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.92% | 6.22% | -0.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.00% | 5.75% | -0.75% |