DFAI vs. TIP
DFAI (Dimensional International Core Equity Market ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - DFAI is a Foreign Large Cap Equities fund actively managed by Dimensional, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. DFAI is actively managed, while TIP is passively managed. Over the past 5 years, DFAI returned 9.46%/yr vs 0.91%/yr for TIP. At a 0.23 correlation, their price movements are largely independent. Both charge a 0.18% expense ratio.
Performance
DFAI vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, DFAI achieves a 10.05% return, which is significantly higher than TIP's 1.40% return.
DFAI
- 1D
- 0.43%
- 1M
- 2.45%
- YTD
- 10.05%
- 6M
- 11.52%
- 1Y
- 25.01%
- 3Y*
- 17.84%
- 5Y*
- 9.46%
- 10Y*
- —
TIP
- 1D
- 0.01%
- 1M
- 0.25%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.76%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
DFAI vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
DFAI Dimensional International Core Equity Market ETF | 10.05% | 34.04% | 4.68% | 17.60% | -12.95% | 13.86% | 5.34% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 1.94% |
Correlation
The correlation between DFAI and TIP is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.24 |
Correlation (All Time) Calculated using the full available price history since Nov 18, 2020 | 0.23 |
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Return for Risk
DFAI vs. TIP — Risk / Return Rank
DFAI
TIP
DFAI vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional International Core Equity Market ETF (DFAI) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| DFAI | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.26 | ||
| Sortino ratioReturn per unit of downside risk | +0.20 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.24 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.18 | 2.34 | -0.17 |
| Martin ratioReturn relative to average drawdown | 8.47 | 7.00 | +1.47 |
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Drawdowns
DFAI vs. TIP - Drawdown Comparison
The maximum DFAI drawdown since its inception was -27.44%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for DFAI and TIP.
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Drawdown Indicators
| DFAI | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.44% | -14.57% | -12.87% |
Max Drawdown (1Y)Largest decline over 1 year | -10.95% | -1.98% | -8.97% |
Max Drawdown (3Y)Largest decline over 3 years | -13.25% | -4.54% | -8.71% |
Max Drawdown (5Y)Largest decline over 5 years | -27.44% | -14.51% | -12.93% |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.51% | — |
Current DrawdownCurrent decline from peak | -0.80% | -0.46% | -0.34% |
Average DrawdownAverage peak-to-trough decline | -5.11% | -3.43% | -1.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.82% | 0.66% | +2.16% |
Volatility
DFAI vs. TIP - Volatility Comparison
Dimensional International Core Equity Market ETF (DFAI) has a higher volatility of 5.12% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that DFAI'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
| DFAI | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.12% | 1.03% | +4.09% |
Volatility (6M)Calculated over the trailing 6-month period | 12.29% | 2.32% | +9.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.60% | 3.39% | +11.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.01% | 6.21% | +9.80% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.75% | 5.74% | +10.01% |
DFAI vs. TIP - Expense Ratio Comparison
Both DFAI and TIP have an expense ratio of 0.18%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
DFAI vs. TIP - Dividend Comparison
DFAI's dividend yield for the trailing twelve months is around 2.24%, less than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFAI Dimensional International Core Equity Market ETF | 2.24% | 2.45% | 2.72% | 2.64% | 2.72% | 2.06% | 0.09% | 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
DFAI and TIP have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DFAI has higher volatility (5.12%) compared to TIP (1.03%). In terms of maximum drawdown, DFAI dropped -27.44% vs TIP's -14.57%.
On 5-year performance, DFAI leads with 9.46% vs 0.91% for TIP. Both ETFs have the same 0.18% expense ratio. On volatility, TIP has been the lower-risk option at 1.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, DFAI has performed better with a 9.46% return vs 0.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DFAI and TIP have the same expense ratio: 0.18% per year.
TIP has the higher dividend yield at 3.76%, compared with 2.24% for DFAI.
DFAI is categorized as Foreign Large Cap Equities, while TIP is Inflation-Protected Bonds. They also come from different issuers: Dimensional and iShares.
DFAI currently has the higher Sharpe Ratio (1.63 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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