IEI vs. TIP
Compare and contrast key facts about iShares 3-7 Year Treasury Bond ETF (IEI) and iShares TIPS Bond ETF (TIP).
IEI and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IEI is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 3-7 Year Treasury Bond Index. It was launched on Jan 11, 2007. 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 IEI 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: IEI or TIP.
Key characteristics
| IEI | TIP | |
|---|---|---|
| YTD Return | -2.30% | -1.53% |
| 1Y Return | -0.89% | -1.25% |
| 3Y Return (Ann) | -2.86% | -1.62% |
| 5Y Return (Ann) | -0.01% | 1.90% |
| 10Y Return (Ann) | 0.93% | 1.80% |
| Sharpe Ratio | -0.27 | -0.26 |
| Daily Std Dev | 5.17% | 5.99% |
| Max Drawdown | -14.60% | -14.56% |
| Current Drawdown | -10.47% | -10.78% |
Correlation
The correlation between IEI and TIP is 0.74, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IEI vs. TIP - Performance Comparison
In the year-to-date period, IEI achieves a -2.30% return, which is significantly lower than TIP's -1.53% return. Over the past 10 years, IEI has underperformed TIP with an annualized return of 0.93%, while TIP has yielded a comparatively higher 1.80% annualized 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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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%.
Risk-Adjusted Performance
IEI vs. TIP - Risk-Adjusted Performance 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.
Dividends
IEI vs. TIP - Dividend Comparison
IEI's dividend yield for the trailing twelve months is around 2.69%, less than TIP's 2.72% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEI iShares 3-7 Year Treasury Bond ETF | 2.69% | 2.36% | 1.37% | 0.73% | 1.12% | 2.01% | 1.95% | 1.51% | 1.33% | 1.39% | 1.23% | 0.77% |
TIP iShares TIPS Bond ETF | 2.72% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
IEI vs. TIP - Drawdown Comparison
The maximum IEI drawdown since its inception was -14.60%, roughly equal to the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for IEI and TIP. For additional features, visit the drawdowns tool.
Volatility
IEI vs. TIP - Volatility Comparison
The current volatility for iShares 3-7 Year Treasury Bond ETF (IEI) is 1.39%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.58%. This indicates that IEI 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.