ICVT vs. STIP
Compare and contrast key facts about iShares Convertible Bond ETF (ICVT) and iShares 0-5 Year TIPS Bond ETF (STIP).
ICVT and STIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. ICVT is a passively managed fund by iShares that tracks the performance of the Barclays U.S. Convertible Cash Pay Bond > $250MM Index. It was launched on Jun 2, 2015. STIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Dec 1, 2010. Both ICVT and STIP 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: ICVT or STIP.
Key characteristics
| ICVT | STIP | |
|---|---|---|
| YTD Return | 11.66% | 4.62% |
| 1Y Return | 23.36% | 6.65% |
| 3Y Return (Ann) | -2.27% | 2.08% |
| 5Y Return (Ann) | 11.44% | 3.54% |
| Sharpe Ratio | 2.67 | 3.09 |
| Sortino Ratio | 3.78 | 5.15 |
| Omega Ratio | 1.49 | 1.68 |
| Calmar Ratio | 0.80 | 3.65 |
| Martin Ratio | 14.46 | 25.30 |
| Ulcer Index | 1.55% | 0.25% |
| Daily Std Dev | 8.38% | 2.07% |
| Max Drawdown | -33.25% | -5.50% |
| Current Drawdown | -11.03% | -0.41% |
Correlation
The correlation between ICVT and STIP is 0.11, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
ICVT vs. STIP - Performance Comparison
In the year-to-date period, ICVT achieves a 11.66% return, which is significantly higher than STIP's 4.62% 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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ICVT vs. STIP - Expense Ratio Comparison
ICVT has a 0.20% expense ratio, which is higher than STIP's 0.06% expense ratio. However, 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
ICVT vs. STIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Convertible Bond ETF (ICVT) and iShares 0-5 Year TIPS Bond ETF (STIP). 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
ICVT vs. STIP - Dividend Comparison
ICVT's dividend yield for the trailing twelve months is around 2.27%, less than STIP's 2.45% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ICVT iShares Convertible Bond ETF | 2.27% | 1.84% | 1.93% | 7.70% | 3.98% | 1.86% | 4.82% | 2.56% | 3.06% | 1.57% | 0.00% | 0.00% |
STIP iShares 0-5 Year TIPS Bond ETF | 2.45% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.43% | 1.59% | 0.89% | 0.00% | 0.75% | 0.31% |
Drawdowns
ICVT vs. STIP - Drawdown Comparison
The maximum ICVT drawdown since its inception was -33.25%, which is greater than STIP's maximum drawdown of -5.50%. Use the drawdown chart below to compare losses from any high point for ICVT and STIP. For additional features, visit the drawdowns tool.
Volatility
ICVT vs. STIP - Volatility Comparison
iShares Convertible Bond ETF (ICVT) has a higher volatility of 2.31% compared to iShares 0-5 Year TIPS Bond ETF (STIP) at 0.45%. This indicates that ICVT's price experiences larger fluctuations and is considered to be riskier than STIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.