GOVT vs. TIP
GOVT (iShares U.S. Treasury Bond ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - GOVT is a Government Bonds fund tracking the ICE U.S. Treasury Core Bond Index, 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 10 years, GOVT returned 0.79%/yr vs 2.45%/yr for TIP. A 0.76 correlation means they provide meaningful diversification when combined. GOVT charges 0.05%/yr vs 0.18%/yr for TIP.
Performance
GOVT vs. TIP - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, GOVT achieves a -0.44% return, which is significantly lower than TIP's 0.95% return. Over the past 10 years, GOVT has underperformed TIP with an annualized return of 0.79%, while TIP has yielded a comparatively higher 2.45% annualized return.
GOVT
- 1D
- -0.11%
- 1M
- -0.70%
- YTD
- -0.44%
- 6M
- -0.15%
- 1Y
- 3.62%
- 3Y*
- 2.77%
- 5Y*
- -0.59%
- 10Y*
- 0.79%
TIP
- 1D
- -0.11%
- 1M
- -0.90%
- YTD
- 0.95%
- 6M
- 0.97%
- 1Y
- 4.81%
- 3Y*
- 3.70%
- 5Y*
- 0.88%
- 10Y*
- 2.45%
GOVT vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | -0.44% | 3.77% | 2.95% | 4.17% | -13.39% | -1.11% | 7.28% | 7.36% | 0.26% | 2.19% |
TIP iShares TIPS Bond ETF | 0.95% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between GOVT and TIP is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.89 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.78 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.77 |
Correlation (All Time) Calculated using the full available price history since Feb 27, 2012 | 0.76 |
The correlation between GOVT and TIP shifts across timeframes, from 0.76 (all time) to 0.89 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
GOVT vs. TIP — Risk / Return Rank
GOVT
TIP
GOVT vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Treasury Bond ETF (GOVT) 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.
| GOVT | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.41 | ||
| Sortino ratioReturn per unit of downside risk | -0.67 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.26 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.27 | 2.45 | -1.17 |
| Martin ratioReturn relative to average drawdown | 3.66 | 7.37 | -3.71 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| GOVT | TIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.02 | 1.43 | -0.41 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.10 | 0.14 | -0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.15 | 0.43 | -0.28 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.57 | -0.31 |
Drawdowns
GOVT vs. TIP - Drawdown Comparison
The maximum GOVT drawdown since its inception was -19.07%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for GOVT and TIP.
Loading charts...
Drawdown Indicators
| GOVT | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.07% | -14.57% | -4.50% |
Max Drawdown (1Y)Largest decline over 1 year | -2.85% | -1.98% | -0.87% |
Max Drawdown (3Y)Largest decline over 3 years | -5.43% | -4.54% | -0.89% |
Max Drawdown (5Y)Largest decline over 5 years | -16.60% | -14.51% | -2.09% |
Max Drawdown (10Y)Largest decline over 10 years | -19.07% | -14.51% | -4.56% |
Current DrawdownCurrent decline from peak | -7.48% | -0.90% | -6.58% |
Average DrawdownAverage peak-to-trough decline | -5.25% | -3.43% | -1.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.99% | 0.65% | +0.34% |
Volatility
GOVT vs. TIP - Volatility Comparison
iShares U.S. Treasury Bond ETF (GOVT) and iShares TIPS Bond ETF (TIP) have volatilities of 1.05% and 1.01%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| GOVT | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.05% | 1.01% | +0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 2.53% | 2.33% | +0.20% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.56% | 3.38% | +0.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.04% | 6.21% | -0.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.23% | 5.74% | -0.51% |
GOVT vs. TIP - Expense Ratio Comparison
GOVT has a 0.05% expense ratio, which is lower than TIP's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
GOVT vs. TIP - Dividend Comparison
GOVT's dividend yield for the trailing twelve months is around 3.60%, less than TIP's 3.78% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GOVT iShares U.S. Treasury Bond ETF | 3.60% | 3.49% | 3.14% | 2.65% | 1.77% | 0.96% | 2.17% | 1.98% | 1.97% | 1.57% | 1.40% | 1.25% |
TIP iShares TIPS Bond ETF | 3.78% | 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
GOVT and TIP have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GOVT has higher volatility (1.05%) compared to TIP (1.01%). In terms of maximum drawdown, GOVT dropped -19.07% vs TIP's -14.57%.
On 10-year performance, TIP leads with 2.45% vs 0.79% for GOVT. On fees, GOVT is cheaper at 0.05% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TIP has performed better with a 2.45% return vs 0.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GOVT is cheaper with a 0.05% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.78%, compared with 3.60% for GOVT.
GOVT is categorized as Government Bonds, while TIP is Inflation-Protected Bonds. GOVT tracks ICE U.S. Treasury Core Bond Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. Their fees differ too: 0.05% for GOVT and 0.18% for TIP.
TIP currently has the higher Sharpe Ratio (1.43 vs 1.02), 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.
Find the right allocation for GOVT and TIP
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer