IBTF vs. TIP
IBTF (iShares iBonds Dec 2025 Term Treasury ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - IBTF is a Government Bonds fund tracking the ICE 2025 Maturity US Treasury Index, while TIP is a Inflation-Protected Bonds fund tracking the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). Both are passively managed. Over the past 5 years, IBTF returned 0.90%/yr vs 0.97%/yr for TIP. At a 0.50 correlation, their price movements are largely independent. IBTF charges 0.07%/yr vs 0.19%/yr for TIP.
Performance
IBTF vs. TIP - Performance Comparison
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Returns By Period
IBTF
- 1D
- 0.00%
- 1M
- 0.00%
- YTD
- 0.00%
- 6M
- 0.09%
- 1Y
- 2.14%
- 3Y*
- 3.66%
- 5Y*
- 0.90%
- 10Y*
- —
TIP
- 1D
- -0.18%
- 1M
- -0.09%
- YTD
- 1.54%
- 6M
- 1.06%
- 1Y
- 4.96%
- 3Y*
- 3.88%
- 5Y*
- 0.97%
- 10Y*
- 2.57%
IBTF vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
IBTF iShares iBonds Dec 2025 Term Treasury ETF | 0.00% | 3.81% | 4.60% | 4.12% | -6.39% | -2.31% | 3.60% |
TIP iShares TIPS Bond ETF | 1.54% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 7.53% |
Correlation
The correlation between IBTF and TIP is -0.01, 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 | -0.01 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Mar 2, 2020 | 0.50 |
The correlation between IBTF and TIP shifts across timeframes, from -0.01 (1 year) to 0.51 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
IBTF vs. TIP — Risk / Return Rank
IBTF
TIP
IBTF vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2025 Term Treasury ETF (IBTF) 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.
| IBTF | TIP | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 7.08 | 1.46 | +5.62 |
Sortino ratioReturn per unit of downside risk | 20.07 | 2.24 | +17.83 |
Omega ratioGain probability vs. loss probability | 6.23 | 1.26 | +4.97 |
Calmar ratioReturn relative to maximum drawdown | 59.41 | 2.52 | +56.88 |
Martin ratioReturn relative to average drawdown | 269.70 | 7.57 | +262.13 |
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
| IBTF | TIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 7.08 | 1.46 | +5.62 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.39 | 0.16 | +0.24 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.45 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.44 | 0.57 | -0.13 |
Drawdowns
IBTF vs. TIP - Drawdown Comparison
The maximum IBTF drawdown since its inception was -10.45%, smaller than the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for IBTF and TIP.
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Drawdown Indicators
| IBTF | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -10.45% | -14.57% | +4.12% |
Max Drawdown (1Y)Largest decline over 1 year | -0.04% | -1.98% | +1.94% |
Max Drawdown (3Y)Largest decline over 3 years | -0.67% | -4.54% | +3.87% |
Max Drawdown (5Y)Largest decline over 5 years | -9.53% | -14.51% | +4.98% |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.51% | — |
Current DrawdownCurrent decline from peak | 0.00% | -0.32% | +0.32% |
Average DrawdownAverage peak-to-trough decline | -3.33% | -3.43% | +0.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.01% | 0.66% | -0.65% |
Volatility
IBTF vs. TIP - Volatility Comparison
The current volatility for iShares iBonds Dec 2025 Term Treasury ETF (IBTF) is 0.00%, while iShares TIPS Bond ETF (TIP) has a volatility of 0.89%. This indicates that IBTF 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
| IBTF | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.00% | 0.89% | -0.89% |
Volatility (6M)Calculated over the trailing 6-month period | 0.19% | 2.29% | -2.10% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.36% | 3.41% | -3.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.38% | 6.21% | -3.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.56% | 5.74% | -3.18% |
IBTF vs. TIP - Expense Ratio Comparison
IBTF has a 0.07% expense ratio, which is lower than TIP's 0.19% 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
IBTF vs. TIP - Dividend Comparison
IBTF's dividend yield for the trailing twelve months is around 2.08%, less than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBTF iShares iBonds Dec 2025 Term Treasury ETF | 2.08% | 3.83% | 4.32% | 4.03% | 1.93% | 0.57% | 0.59% | 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
IBTF and TIP have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TIP has higher volatility (0.89%) compared to IBTF (0.00%). In terms of maximum drawdown, IBTF dropped -10.45% vs TIP's -14.57%.
On 5-year performance, TIP leads with 0.97% vs 0.90% for IBTF. On fees, IBTF is cheaper at 0.07% per year. On volatility, IBTF has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, TIP has performed better with a 0.97% return vs 0.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBTF is cheaper with a 0.07% expense ratio, compared with 0.19% for TIP.
TIP has the higher dividend yield at 3.76%, compared with 2.08% for IBTF.
IBTF is categorized as Government Bonds, while TIP is Inflation-Protected Bonds. IBTF tracks ICE 2025 Maturity US Treasury Index, while TIP tracks Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). Their fees differ too: 0.07% for IBTF and 0.19% for TIP.
IBTF currently has the higher Sharpe Ratio (7.08 vs 1.46), 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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