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IEI vs. TIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEI vs. TIP

Last updated Jun 4, 2026

IEI (iShares 3-7 Year Treasury Bond ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - IEI is a Government Bonds fund tracking the ICE U.S. Treasury 3-7 Year Bond 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 10 years, IEI returned 1.28%/yr vs 2.57%/yr for TIP. A 0.75 correlation means they provide meaningful diversification when combined. IEI charges 0.15%/yr vs 0.19%/yr for TIP.

Performance

IEI vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 3-7 Year Treasury Bond ETF (IEI) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IEI achieves a -0.42% return, which is significantly lower than TIP's 1.54% return. Over the past 10 years, IEI has underperformed TIP with an annualized return of 1.28%, while TIP has yielded a comparatively higher 2.57% annualized return.

IEI

1D
-0.13%
1M
-0.17%
YTD
-0.42%
6M
-0.49%
1Y
3.28%
3Y*
3.52%
5Y*
0.23%
10Y*
1.28%

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%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEI vs. TIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEI
iShares 3-7 Year Treasury Bond ETF		-0.42%6.96%1.81%4.42%-9.51%-2.54%6.95%5.71%1.36%1.22%
TIP
iShares TIPS Bond ETF		1.54%6.77%1.65%3.80%-12.26%5.68%10.84%8.35%-1.42%2.92%

Correlation

The correlation between IEI and TIP is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

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

0.84

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

0.87

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

0.78

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

0.76

Correlation (All Time)
Calculated using the full available price history since Jan 12, 2007

0.75

The correlation between IEI and TIP shifts across timeframes, from 0.75 (all time) to 0.87 (3 years), reflecting how their relationship changes across market environments.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares 3-7 Year Treasury Bond ETF

iShares TIPS Bond ETF

Often compared with IEI:
IEI vs. IEFIEI vs. VGITIEI vs. TLTIEI vs. BNDIEI vs. TLHIEI vs. IMTBIEI vs. BSV
Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF

Return for Risk

IEI vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEI
IEI Risk / Return Rank: 2828
Overall Rank
IEI Sharpe Ratio Rank: 2929
Sharpe Ratio Rank
IEI Sortino Ratio Rank: 3030
Sortino Ratio Rank
IEI Omega Ratio Rank: 2727
Omega Ratio Rank
IEI Calmar Ratio Rank: 2727
Calmar Ratio Rank
IEI Martin Ratio Rank: 2727
Martin Ratio Rank
TIP
TIP Risk / Return Rank: 4444
Overall Rank
TIP Sharpe Ratio Rank: 4040
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 4444
Sortino Ratio Rank
TIP Omega Ratio Rank: 3939
Omega Ratio Rank
TIP Calmar Ratio Rank: 5050
Calmar Ratio Rank
TIP Martin Ratio Rank: 4545
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.

IEI vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 3-7 Year Treasury Bond ETF (IEI) 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.

IEITIPDifference
Sharpe ratioReturn per unit of total volatility
1.09
1.46

-0.37

Sortino ratioReturn per unit of downside risk
1.65
2.24

-0.59

Omega ratioGain probability vs. loss probability

1.19

1.26

-0.07

Calmar ratioReturn relative to maximum drawdown

1.32

2.52

-1.20

Martin ratioReturn relative to average drawdown

3.96

7.57

-3.61

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

IEI vs. TIP - Sharpe Ratio Comparison

The current IEI Sharpe Ratio is 1.09, which is comparable to the TIP Sharpe Ratio of 1.46. The chart below compares the historical Sharpe Ratios of IEI and TIP, 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

IEITIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.09

1.46

-0.37

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.05

0.16

-0.11

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.33

0.45

-0.12

Sharpe Ratio (All Time)

Calculated using the full available price history

0.70

0.57

+0.13

Drawdowns

IEI vs. TIP - Drawdown Comparison

The maximum IEI drawdown since its inception was -14.60%, roughly equal to the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for IEI and TIP.

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Drawdown Indicators

IEITIPDifference

Max Drawdown

Largest peak-to-trough decline

-14.60%

-14.57%

-0.03%

Max Drawdown (1Y)

Largest decline over 1 year

-2.50%

-1.98%

-0.52%

Max Drawdown (3Y)

Largest decline over 3 years

-3.66%

-4.54%

+0.88%

Max Drawdown (5Y)

Largest decline over 5 years

-13.88%

-14.51%

+0.63%

Max Drawdown (10Y)

Largest decline over 10 years

-14.60%

-14.51%

-0.09%

Current Drawdown

Current decline from peak

-1.85%

-0.32%

-1.53%

Average Drawdown

Average peak-to-trough decline

-2.67%

-3.43%

+0.76%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.83%

0.66%

+0.17%

Volatility

IEI vs. TIP - Volatility Comparison

iShares 3-7 Year Treasury Bond ETF (IEI) and iShares TIPS Bond ETF (TIP) have volatilities of 0.91% and 0.89%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

IEITIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.91%

0.89%

+0.02%

Volatility (6M)

Calculated over the trailing 6-month period

2.13%

2.29%

-0.16%

Volatility (1Y)

Calculated over the trailing 1-year period

3.04%

3.41%

-0.37%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

4.77%

6.21%

-1.44%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

3.93%

5.74%

-1.81%

IEI vs. TIP - Expense Ratio Comparison

IEI has a 0.15% 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

IEI vs. TIP - Dividend Comparison

IEI's dividend yield for the trailing twelve months is around 3.64%, less than TIP's 3.76% yield.

PositionTTM20252024202320222021202020192018201720162015
IEI
iShares 3-7 Year Treasury Bond ETF		3.64%3.48%3.18%2.36%1.37%0.73%1.12%2.01%1.95%1.51%1.33%1.39%
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

IEI and TIP have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IEI has higher volatility (0.91%) compared to TIP (0.89%). In terms of maximum drawdown, IEI dropped -14.60% vs TIP's -14.57%.

On 10-year performance, TIP leads with 2.57% vs 1.28% for IEI. On fees, IEI is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, TIP has performed better with a 2.57% return vs 1.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

IEI is cheaper with a 0.15% expense ratio, compared with 0.19% for TIP.

TIP has the higher dividend yield at 3.76%, compared with 3.64% for IEI.

IEI is categorized as Government Bonds, while TIP is Inflation-Protected Bonds. IEI tracks ICE U.S. Treasury 3-7 Year Bond Index, while TIP tracks Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L). Their fees differ too: 0.15% for IEI and 0.19% for TIP.

TIP currently has the higher Sharpe Ratio (1.46 vs 1.09), 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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