IBTI vs. TIP
Compare and contrast key facts about iShares iBonds Dec 2028 Term Treasury ETF (IBTI) and iShares TIPS Bond ETF (TIP).
IBTI and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IBTI is a passively managed fund by iShares that tracks the performance of the ICE 2028 Maturity US Treasury Index. It was launched on Feb 25, 2020. TIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). It was launched on Dec 4, 2003. Both IBTI and TIP are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IBTI or TIP.
Key characteristics
| IBTI | TIP | |
|---|---|---|
| YTD Return | 4.33% | 5.14% |
| 1Y Return | 8.39% | 8.22% |
| 3Y Return (Ann) | -1.50% | -0.92% |
| Sharpe Ratio | 1.85 | 1.55 |
| Daily Std Dev | 4.52% | 5.46% |
| Max Drawdown | -18.45% | -14.56% |
| Current Drawdown | -8.17% | -4.74% |
Correlation
The correlation between IBTI and TIP is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
IBTI vs. TIP - Performance Comparison
In the year-to-date period, IBTI achieves a 4.33% return, which is significantly lower than TIP's 5.14% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IBTI vs. TIP - Expense Ratio Comparison
IBTI 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%.
Risk-Adjusted Performance
IBTI vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2028 Term Treasury ETF (IBTI) 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.
Dividends
IBTI vs. TIP - Dividend Comparison
IBTI's dividend yield for the trailing twelve months is around 3.73%, more than TIP's 2.71% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBTI iShares iBonds Dec 2028 Term Treasury ETF | 3.73% | 3.27% | 1.70% | 0.90% | 0.56% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TIP iShares TIPS Bond ETF | 2.71% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
IBTI vs. TIP - Drawdown Comparison
The maximum IBTI drawdown since its inception was -18.45%, which is greater than TIP's maximum drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for IBTI and TIP. For additional features, visit the drawdowns tool.
Volatility
IBTI vs. TIP - Volatility Comparison
The current volatility for iShares iBonds Dec 2028 Term Treasury ETF (IBTI) is 0.77%, while iShares TIPS Bond ETF (TIP) has a volatility of 0.99%. This indicates that IBTI 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.