ESG vs. TDTT
ESG (FlexShares STOXX US ESG Select Index Fund) and TDTT (FlexShares iBoxx 3-Year Target Duration TIPS Index Fund) are both exchange-traded funds - ESG is a Large Cap Growth Equities fund tracking the STOXX USA ESG Select KPIs Index, while TDTT is a Inflation-Protected Bonds fund tracking the iBoxx 3-Year Target Duration TIPS. Both are passively managed. Over the past 5 years, ESG returned 12.73%/yr vs 2.85%/yr for TDTT. At a 0.09 correlation, their price movements are largely independent. ESG charges 0.32%/yr vs 0.18%/yr for TDTT.
Performance
ESG vs. TDTT - Performance Comparison
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Returns By Period
In the year-to-date period, ESG achieves a 12.20% return, which is significantly higher than TDTT's 1.81% return.
ESG
- 1D
- -0.45%
- 1M
- 7.28%
- YTD
- 12.20%
- 6M
- 13.15%
- 1Y
- 25.90%
- 3Y*
- 20.72%
- 5Y*
- 12.73%
- 10Y*
- —
TDTT
- 1D
- 0.00%
- 1M
- -0.06%
- YTD
- 1.81%
- 6M
- 1.77%
- 1Y
- 4.65%
- 3Y*
- 5.00%
- 5Y*
- 2.85%
- 10Y*
- 3.11%
ESG vs. TDTT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ESG FlexShares STOXX US ESG Select Index Fund | 12.20% | 16.04% | 20.22% | 27.86% | -19.89% | 28.48% | 20.75% | 31.74% | -5.17% | 22.78% |
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 1.81% | 6.67% | 3.96% | 4.40% | -4.58% | 5.49% | 6.84% | 5.74% | 0.25% | 0.43% |
Correlation
The correlation between ESG and TDTT is 0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.02 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.09 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (All Time) Calculated using the full available price history since Jul 15, 2016 | 0.09 |
The correlation between ESG and TDTT shifts across timeframes, from 0.02 (1 year) to 0.14 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
ESG vs. TDTT — Risk / Return Rank
ESG
TDTT
ESG vs. TDTT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares STOXX US ESG Select Index Fund (ESG) and FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT). 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.
| ESG | TDTT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.21 | ||
| Sortino ratioReturn per unit of downside risk | -0.97 | ||
| Omega ratioGain probability vs. loss probability | 1.41 | 1.51 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 3.00 | 5.17 | -2.17 |
| Martin ratioReturn relative to average drawdown | 13.02 | 16.59 | -3.58 |
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
| ESG | TDTT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.33 | 2.54 | -0.21 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.76 | 0.78 | -0.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.92 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.83 | 0.69 | +0.13 |
Drawdowns
ESG vs. TDTT - Drawdown Comparison
The maximum ESG drawdown since its inception was -32.53%, which is greater than TDTT's maximum drawdown of -6.97%. Use the drawdown chart below to compare losses from any high point for ESG and TDTT.
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Drawdown Indicators
| ESG | TDTT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.53% | -6.97% | -25.56% |
Max Drawdown (1Y)Largest decline over 1 year | -8.68% | -0.90% | -7.78% |
Max Drawdown (3Y)Largest decline over 3 years | -18.32% | -1.53% | -16.79% |
Max Drawdown (5Y)Largest decline over 5 years | -26.04% | -6.97% | -19.07% |
Max Drawdown (10Y)Largest decline over 10 years | — | -6.97% | — |
Current DrawdownCurrent decline from peak | -0.45% | -0.14% | -0.31% |
Average DrawdownAverage peak-to-trough decline | -5.07% | -1.60% | -3.47% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.99% | 0.28% | +1.71% |
Volatility
ESG vs. TDTT - Volatility Comparison
FlexShares STOXX US ESG Select Index Fund (ESG) has a higher volatility of 2.94% compared to FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) at 0.46%. This indicates that ESG's price experiences larger fluctuations and is considered to be riskier than TDTT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ESG | TDTT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.94% | 0.46% | +2.48% |
Volatility (6M)Calculated over the trailing 6-month period | 8.46% | 1.21% | +7.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.16% | 1.85% | +9.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.73% | 3.67% | +13.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.36% | 3.38% | +14.98% |
ESG vs. TDTT - Expense Ratio Comparison
ESG has a 0.32% expense ratio, which is higher than TDTT's 0.18% expense ratio.
Dividends
ESG vs. TDTT - Dividend Comparison
ESG's dividend yield for the trailing twelve months is around 0.87%, less than TDTT's 4.54% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
ESG FlexShares STOXX US ESG Select Index Fund | 0.87% | 0.96% | 1.18% | 1.10% | 1.38% | 1.03% | 1.33% | 1.51% | 1.72% | 1.52% | 0.92% |
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 4.54% | 4.52% | 4.01% | 3.88% | 6.97% | 4.53% | 1.15% | 1.91% | 2.48% | 1.88% | 1.01% |
Frequently Asked Questions
ESG and TDTT have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ESG has higher volatility (2.94%) compared to TDTT (0.46%). In terms of maximum drawdown, ESG dropped -32.53% vs TDTT's -6.97%.
On 5-year performance, ESG leads with 12.73% vs 2.85% for TDTT. On fees, TDTT is cheaper at 0.18% per year. On volatility, TDTT has been the lower-risk option at 0.46%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, ESG has performed better with a 12.73% return vs 2.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TDTT is cheaper with a 0.18% expense ratio, compared with 0.32% for ESG.
TDTT has the higher dividend yield at 4.54%, compared with 0.87% for ESG.
ESG is categorized as Large Cap Growth Equities, while TDTT is Inflation-Protected Bonds. ESG tracks STOXX USA ESG Select KPIs Index, while TDTT tracks iBoxx 3-Year Target Duration TIPS. Their fees differ too: 0.32% for ESG and 0.18% for TDTT.
TDTT currently has the higher Sharpe Ratio (2.54 vs 2.33), 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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