IBIC vs. TIP
IBIC (iShares iBonds Oct 2026 Term TIPS ETF) and TIP (iShares TIPS Bond ETF) are both Inflation-Protected Bonds funds from iShares - IBIC tracks the ICE 2026 Maturity US Inflation-Linked Treasury Index while TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past year, IBIC returned 4.38% vs 3.46% for TIP. A 0.50 correlation means they provide meaningful diversification when combined. IBIC charges 0.10%/yr vs 0.18%/yr for TIP.
Performance
IBIC vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, IBIC achieves a 2.39% return, which is significantly higher than TIP's 0.78% return.
IBIC
- 1D
- 0.06%
- 1M
- 0.08%
- YTD
- 2.39%
- 6M
- 2.49%
- 1Y
- 4.38%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TIP
- 1D
- -0.41%
- 1M
- -0.16%
- YTD
- 0.78%
- 6M
- 0.90%
- 1Y
- 3.46%
- 3Y*
- 3.53%
- 5Y*
- 0.79%
- 10Y*
- 2.43%
IBIC vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 2.39% | 4.96% | 5.25% | 2.17% |
TIP iShares TIPS Bond ETF | 0.78% | 6.77% | 1.65% | 2.88% |
Correlation
The correlation between IBIC and TIP is 0.08, 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 | 0.08 |
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023 | 0.50 |
Over the past year, the correlation between IBIC and TIP has dropped to 0.08 - well below their long-term average of 0.50, suggesting their price drivers have been diverging.
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Return for Risk
IBIC vs. TIP — Risk / Return Rank
IBIC
TIP
IBIC vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Oct 2026 Term TIPS ETF (IBIC) 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.
| IBIC | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.93 | ||
| Sortino ratioReturn per unit of downside risk | +7.38 | ||
| Omega ratioGain probability vs. loss probability | 2.21 | 1.18 | +1.04 |
| Calmar ratioReturn relative to maximum drawdown | 16.41 | 1.76 | +14.65 |
| Martin ratioReturn relative to average drawdown | 58.11 | 5.20 | +52.91 |
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Drawdowns
IBIC vs. TIP - Drawdown Comparison
The maximum IBIC drawdown since its inception was -0.90%, smaller than the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for IBIC and TIP.
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Drawdown Indicators
| IBIC | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -0.90% | -14.57% | +13.67% |
Max Drawdown (1Y)Largest decline over 1 year | -0.27% | -1.98% | +1.71% |
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 DrawdownCurrent decline from peak | -0.11% | -1.07% | +0.96% |
Average DrawdownAverage peak-to-trough decline | -0.10% | -3.43% | +3.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.08% | 0.67% | -0.59% |
Volatility
IBIC vs. TIP - Volatility Comparison
The current volatility for iShares iBonds Oct 2026 Term TIPS ETF (IBIC) is 0.16%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.22%. This indicates that IBIC experiences smaller price fluctuations and is considered to be less risky 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
| IBIC | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.16% | 1.22% | -1.06% |
Volatility (6M)Calculated over the trailing 6-month period | 0.67% | 2.47% | -1.80% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.89% | 3.45% | -2.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.57% | 6.20% | -4.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 5.74% | -4.17% |
IBIC vs. TIP - Expense Ratio Comparison
IBIC has a 0.10% 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
IBIC vs. TIP - Dividend Comparison
IBIC's dividend yield for the trailing twelve months is around 3.59%, less than TIP's 3.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBIC iShares iBonds Oct 2026 Term TIPS ETF | 3.59% | 4.43% | 4.65% | 0.83% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TIP iShares TIPS Bond ETF | 3.79% | 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
IBIC and TIP have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TIP has higher volatility (1.22%) compared to IBIC (0.16%). In terms of maximum drawdown, IBIC dropped -0.90% vs TIP's -14.57%.
On 1-year performance, IBIC leads with 4.38% vs 3.46% for TIP. On fees, IBIC is cheaper at 0.10% per year. On volatility, IBIC has been the lower-risk option at 0.16%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IBIC has performed better with a 4.38% return vs 3.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBIC is cheaper with a 0.10% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.79%, compared with 3.59% for IBIC.
IBIC tracks ICE 2026 Maturity US Inflation-Linked Treasury Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. Their fees differ too: 0.10% for IBIC and 0.18% for TIP.
IBIC currently has the higher Sharpe Ratio (4.94 vs 1.01), 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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