DBC vs. TIP
Compare and contrast key facts about Invesco DB Commodity Index Tracking Fund (DBC) and iShares TIPS Bond ETF (TIP).
DBC and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DBC is a passively managed fund by Invesco that tracks the performance of the DBIQ Optimum Yield Diversified Commodity Index Excess Return. It was launched on Feb 3, 2006. 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. Both DBC and TIP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: DBC or TIP.
Key characteristics
| DBC | TIP | |
|---|---|---|
| YTD Return | 6.67% | -1.63% |
| 1Y Return | 4.21% | -2.03% |
| 3Y Return (Ann) | 12.06% | -1.64% |
| 5Y Return (Ann) | 9.50% | 1.88% |
| 10Y Return (Ann) | -0.40% | 1.75% |
| Sharpe Ratio | 0.19 | -0.24 |
| Daily Std Dev | 14.29% | 6.02% |
| Max Drawdown | -76.36% | -14.56% |
| Current Drawdown | -44.14% | -10.88% |
Correlation
The correlation between DBC and TIP is 0.05, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
DBC vs. TIP - Performance Comparison
In the year-to-date period, DBC achieves a 6.67% return, which is significantly higher than TIP's -1.63% return. Over the past 10 years, DBC has underperformed TIP with an annualized return of -0.40%, while TIP has yielded a comparatively higher 1.75% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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DBC vs. TIP - Expense Ratio Comparison
DBC has a 0.85% expense ratio, which is higher than TIP's 0.19% expense ratio.
Risk-Adjusted Performance
DBC vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco DB Commodity Index Tracking Fund (DBC) 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
DBC vs. TIP - Dividend Comparison
DBC's dividend yield for the trailing twelve months is around 4.63%, more than TIP's 2.72% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DBC Invesco DB Commodity Index Tracking Fund | 4.63% | 4.94% | 0.59% | 0.00% | 0.00% | 1.59% | 1.30% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TIP iShares TIPS Bond ETF | 2.72% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
DBC vs. TIP - Drawdown Comparison
The maximum DBC drawdown since its inception was -76.36%, which is greater than TIP's maximum drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for DBC and TIP. For additional features, visit the drawdowns tool.
Volatility
DBC vs. TIP - Volatility Comparison
Invesco DB Commodity Index Tracking Fund (DBC) has a higher volatility of 2.91% compared to iShares TIPS Bond ETF (TIP) at 1.59%. This indicates that DBC'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.