BUFP vs. TIP

Last updated Jun 4, 2026

BUFP (PGIM Laddered S&P 500 Buffer 12 ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - BUFP is a Defined Outcome fund tracking the S&P 500, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past year, BUFP returned 17.24% vs 4.96% for TIP. At a 0.16 correlation, their price movements are largely independent. BUFP charges 0.50%/yr vs 0.18%/yr for TIP.

Performance

BUFP vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BUFP achieves a 6.23% return, which is significantly higher than TIP's 1.54% return.

BUFP

• 1D: -0.22%
• 1M: 2.04%
• YTD: 6.23%
• 6M: 7.00%
• 1Y: 17.24%
• 3Y*: —
• 5Y*: —
• 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%

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

BUFP vs. TIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BUFP PGIM Laddered S&P 500 Buffer 12 ETF	6.23%	12.92%	6.36%
TIP iShares TIPS Bond ETF	1.54%	6.77%	0.91%

Correlation

The correlation between BUFP and TIP is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (All Time) Calculated using the full available price history since Jun 14, 2024	0.16

Return for Risk

BUFP vs. TIP — Risk / Return Rank

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

BUFP

BUFP Risk / Return Rank: 86
BUFP Sharpe Ratio Rank: 84
BUFP Sortino Ratio Rank: 89
BUFP Omega Ratio Rank: 89
BUFP Calmar Ratio Rank: 77
BUFP Martin Ratio Rank: 91

TIP

TIP Risk / Return Rank: 44
TIP Sharpe Ratio Rank: 40
TIP Sortino Ratio Rank: 44
TIP Omega Ratio Rank: 39
TIP Calmar Ratio Rank: 50
TIP Martin Ratio Rank: 45

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.

BUFP vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) 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.

	BUFP	TIP	Difference
Sharpe ratio: Return per unit of total volatility	2.77	1.46	+1.31
Sortino ratio: Return per unit of downside risk	4.12	2.24	+1.88
Omega ratio: Gain probability vs. loss probability	1.58	1.26	+0.32
Calmar ratio: Return relative to maximum drawdown	3.93	2.52	+1.40
Martin ratio: Return relative to average drawdown	21.96	7.57	+14.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BUFP vs. TIP - Sharpe Ratio Comparison

The current BUFP Sharpe Ratio is 2.77, which is higher than the TIP Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of BUFP and TIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BUFP	TIP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.77	1.46	+1.31
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.16	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.45	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.40	0.57	+0.83

Drawdowns

BUFP vs. TIP - Drawdown Comparison

The maximum BUFP drawdown since its inception was -11.98%, smaller than the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for BUFP and TIP.

Drawdown Indicators

	BUFP	TIP	Difference
Max Drawdown Largest peak-to-trough decline	-11.98%	-14.57%	+2.59%
Max Drawdown (1Y) Largest decline over 1 year	-4.41%	-1.98%	-2.43%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.54%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-14.51%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-14.51%	—
Current Drawdown Current decline from peak	-0.22%	-0.32%	+0.10%
Average Drawdown Average peak-to-trough decline	-1.00%	-3.43%	+2.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	0.66%	+0.13%

Volatility

BUFP vs. TIP - Volatility Comparison

PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) has a higher volatility of 0.95% compared to iShares TIPS Bond ETF (TIP) at 0.89%. This indicates that BUFP'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.

Volatility by Period

	BUFP	TIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	0.89%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	4.82%	2.29%	+2.53%
Volatility (1Y) Calculated over the trailing 1-year period	6.27%	3.41%	+2.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.49%	6.21%	+3.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.49%	5.74%	+3.75%

BUFP vs. TIP - Expense Ratio Comparison

BUFP has a 0.50% expense ratio, which is higher than TIP's 0.18% expense ratio.

Dividends

BUFP vs. TIP - Dividend Comparison

BUFP's dividend yield for the trailing twelve months is around 0.01%, less than TIP's 3.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BUFP PGIM Laddered S&P 500 Buffer 12 ETF	0.01%	0.01%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	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

Can I hold both BUFP and TIP in my portfolio?

BUFP and TIP have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BUFP or TIP?

BUFP has higher volatility (0.95%) compared to TIP (0.89%). In terms of maximum drawdown, BUFP dropped -11.98% vs TIP's -14.57%.

Which ETF is better, BUFP or TIP?

On 1-year performance, BUFP leads with 17.24% vs 4.96% for TIP. On fees, TIP is cheaper at 0.18% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BUFP or TIP?

Over the 1-year period, BUFP has performed better with a 17.24% return vs 4.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BUFP or TIP?

TIP is cheaper with a 0.18% expense ratio, compared with 0.50% for BUFP.

Which ETF pays a higher dividend yield, BUFP or TIP?

TIP has the higher dividend yield at 3.76%, compared with 0.01% for BUFP.

What is the main difference between BUFP and TIP?

BUFP is categorized as Defined Outcome, while TIP is Inflation-Protected Bonds. BUFP tracks S&P 500, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: PGIM and iShares. Their fees differ too: 0.50% for BUFP and 0.18% for TIP.

Which has better risk-adjusted returns?

BUFP currently has the higher Sharpe Ratio (2.77 vs 1.46), 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.