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IEF vs. STIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEF vs. STIP

Last updated Jun 4, 2026

IEF (iShares 7-10 Year Treasury Bond ETF) and STIP (iShares 0-5 Year TIPS Bond ETF) are both exchange-traded funds - IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index, while STIP is a Inflation-Protected Bonds fund tracking the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). Both are passively managed. Over the past 10 years, IEF returned 0.63%/yr vs 3.18%/yr for STIP. A 0.52 correlation means they provide meaningful diversification when combined. IEF charges 0.15%/yr vs 0.06%/yr for STIP.

Performance

IEF vs. STIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 7-10 Year Treasury Bond ETF (IEF) and iShares 0-5 Year TIPS Bond ETF (STIP). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IEF achieves a -0.66% return, which is significantly lower than STIP's 2.04% return. Over the past 10 years, IEF has underperformed STIP with an annualized return of 0.63%, while STIP has yielded a comparatively higher 3.18% annualized return.

IEF

1D
-0.25%
1M
-0.08%
YTD
-0.66%
6M
-1.17%
1Y
4.06%
3Y*
2.47%
5Y*
-1.14%
10Y*
0.63%

STIP

1D
0.00%
1M
0.03%
YTD
2.04%
6M
2.03%
1Y
4.68%
3Y*
5.23%
5Y*
3.37%
10Y*
3.18%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEF vs. STIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEF
iShares 7-10 Year Treasury Bond ETF		-0.66%8.03%-0.63%3.64%-15.15%-3.33%10.01%8.03%0.99%2.55%
STIP
iShares 0-5 Year TIPS Bond ETF		2.04%6.03%4.77%4.63%-3.02%5.68%5.18%4.89%0.54%0.74%

Correlation

The correlation between IEF and STIP is 0.59, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.59

Correlation (3Y)
Calculated over the trailing 3-year period

0.71

Correlation (5Y)
Calculated over the trailing 5-year period

0.60

Correlation (10Y)
Calculated over the trailing 10-year period

0.56

Correlation (All Time)
Calculated using the full available price history since Dec 6, 2010

0.52

The correlation between IEF and STIP shifts across timeframes, from 0.52 (all time) to 0.71 (3 years), reflecting how their relationship changes across market environments.

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iShares 7-10 Year Treasury Bond ETF

iShares 0-5 Year TIPS Bond ETF

Often compared with IEF:
IEF vs. TLTIEF vs. VGITIEF vs. LQDIEF vs. BNDIEF vs. SHYIEF vs. IEIIEF vs. TIP
Often compared with STIP:
STIP vs. VTIPSTIP vs. TIPSTIP vs. SCHPSTIP vs. SCHOSTIP vs. BNDSTIP vs. SCHRSTIP vs. STPZ

Return for Risk

IEF vs. STIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEF
IEF Risk / Return Rank: 2323
Overall Rank
IEF Sharpe Ratio Rank: 2424
Sharpe Ratio Rank
IEF Sortino Ratio Rank: 2323
Sortino Ratio Rank
IEF Omega Ratio Rank: 2121
Omega Ratio Rank
IEF Calmar Ratio Rank: 2222
Calmar Ratio Rank
IEF Martin Ratio Rank: 2323
Martin Ratio Rank
STIP
STIP Risk / Return Rank: 9393
Overall Rank
STIP Sharpe Ratio Rank: 9191
Sharpe Ratio Rank
STIP Sortino Ratio Rank: 9696
Sortino Ratio Rank
STIP Omega Ratio Rank: 9494
Omega Ratio Rank
STIP Calmar Ratio Rank: 9393
Calmar Ratio Rank
STIP Martin Ratio Rank: 9494
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IEF vs. STIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 7-10 Year Treasury Bond ETF (IEF) 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.

IEFSTIPDifference
Sharpe ratioReturn per unit of total volatility
0.85
3.23

-2.38

Sortino ratioReturn per unit of downside risk
1.29
5.59

-4.30

Omega ratioGain probability vs. loss probability

1.15

1.69

-0.55

Calmar ratioReturn relative to maximum drawdown

1.00

6.76

-5.76

Martin ratioReturn relative to average drawdown

2.98

26.37

-23.39

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEF vs. STIP - Sharpe Ratio Comparison

The current IEF Sharpe Ratio is 0.85, which is lower than the STIP Sharpe Ratio of 3.23. The chart below compares the historical Sharpe Ratios of IEF and STIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

IEFSTIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.85

3.23

-2.38

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.15

1.23

-1.38

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.10

1.30

-1.21

Sharpe Ratio (All Time)

Calculated using the full available price history

0.50

1.07

-0.57

Drawdowns

IEF vs. STIP - Drawdown Comparison

The maximum IEF drawdown since its inception was -23.93%, which is greater than STIP's maximum drawdown of -5.50%. Use the drawdown chart below to compare losses from any high point for IEF and STIP.

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Drawdown Indicators

IEFSTIPDifference

Max Drawdown

Largest peak-to-trough decline

-23.93%

-5.50%

-18.43%

Max Drawdown (1Y)

Largest decline over 1 year

-4.07%

-0.69%

-3.38%

Max Drawdown (3Y)

Largest decline over 3 years

-7.74%

-0.95%

-6.79%

Max Drawdown (5Y)

Largest decline over 5 years

-21.40%

-5.50%

-15.90%

Max Drawdown (10Y)

Largest decline over 10 years

-23.93%

-5.50%

-18.43%

Current Drawdown

Current decline from peak

-11.35%

-0.03%

-11.32%

Average Drawdown

Average peak-to-trough decline

-5.34%

-0.99%

-4.35%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.37%

0.18%

+1.19%

Volatility

IEF vs. STIP - Volatility Comparison

iShares 7-10 Year Treasury Bond ETF (IEF) has a higher volatility of 1.54% compared to iShares 0-5 Year TIPS Bond ETF (STIP) at 0.40%. This indicates that IEF'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.

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Volatility by Period

IEFSTIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.54%

0.40%

+1.14%

Volatility (6M)

Calculated over the trailing 6-month period

3.34%

0.99%

+2.35%

Volatility (1Y)

Calculated over the trailing 1-year period

4.78%

1.46%

+3.32%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.71%

2.75%

+4.96%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

6.62%

2.45%

+4.17%

IEF vs. STIP - Expense Ratio Comparison

IEF has a 0.15% 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%.

Dividends

IEF vs. STIP - Dividend Comparison

IEF's dividend yield for the trailing twelve months is around 3.90%, less than STIP's 4.30% yield.

PositionTTM20252024202320222021202020192018201720162015
IEF
iShares 7-10 Year Treasury Bond ETF		3.90%3.77%3.62%2.91%1.96%0.83%1.08%2.08%2.24%1.82%1.81%1.90%
STIP
iShares 0-5 Year TIPS Bond ETF		4.30%4.11%2.62%2.84%6.04%4.15%1.40%2.06%2.44%1.59%0.89%0.00%

Frequently Asked Questions

IEF and STIP have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IEF has higher volatility (1.54%) compared to STIP (0.40%). In terms of maximum drawdown, IEF dropped -23.93% vs STIP's -5.50%.

On 10-year performance, STIP leads with 3.18% vs 0.63% for IEF. On fees, STIP is cheaper at 0.06% per year. On volatility, STIP has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, STIP has performed better with a 3.18% return vs 0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

STIP is cheaper with a 0.06% expense ratio, compared with 0.15% for IEF.

STIP has the higher dividend yield at 4.30%, compared with 3.90% for IEF.

IEF is categorized as Government Bonds, while STIP is Inflation-Protected Bonds. IEF tracks ICE U.S. Treasury 7-10 Year Bond Index, while STIP tracks Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). Their fees differ too: 0.15% for IEF and 0.06% for STIP.

STIP currently has the higher Sharpe Ratio (3.23 vs 0.85), 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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