LDRI vs. TDTT

Last updated Jun 4, 2026

LDRI (iShares iBonds 1-5 Year TIPS Ladder ETF) and TDTT (FlexShares iBoxx 3-Year Target Duration TIPS Index Fund) are both Inflation-Protected Bonds funds - LDRI tracks the BlackRock iBonds® 1-5 Year TIPS Ladder Index while TDTT tracks the iBoxx 3-Year Target Duration TIPS. Both are passively managed. Over the past year, LDRI returned 4.51% vs 4.65% for TDTT. A 0.66 correlation means they provide meaningful diversification when combined. LDRI charges 0.10%/yr vs 0.18%/yr for TDTT.

Performance

LDRI vs. TDTT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI) and FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LDRI achieves a 1.92% return, which is significantly higher than TDTT's 1.81% return.

LDRI

• 1D: 0.00%
• 1M: 0.02%
• YTD: 1.92%
• 6M: 2.12%
• 1Y: 4.51%
• 3Y*: —
• 5Y*: —
• 10Y*: —

TDTT

• 1D: 0.00%
• 1M: -0.06%
• YTD: 1.81%
• 6M: 1.77%
• 1Y: 4.65%
• 3Y*: 5.00%
• 5Y*: 2.85%
• 10Y*: 3.11%

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

LDRI vs. TDTT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LDRI iShares iBonds 1-5 Year TIPS Ladder ETF	1.92%	5.94%	0.10%
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund	1.81%	6.67%	-0.27%

Correlation

The correlation between LDRI and TDTT is 0.64, 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	0.64
Correlation (All Time) Calculated using the full available price history since Nov 11, 2024	0.66

The correlation between LDRI and TDTT has been stable across timeframes, ranging from 0.64 to 0.66 - a consistent structural relationship.

Return for Risk

LDRI vs. TDTT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LDRI

LDRI Risk / Return Rank: 85
LDRI Sharpe Ratio Rank: 74
LDRI Sortino Ratio Rank: 82
LDRI Omega Ratio Rank: 87
LDRI Calmar Ratio Rank: 94
LDRI Martin Ratio Rank: 89

TDTT

TDTT Risk / Return Rank: 84
TDTT Sharpe Ratio Rank: 78
TDTT Sortino Ratio Rank: 90
TDTT Omega Ratio Rank: 84
TDTT Calmar Ratio Rank: 88
TDTT Martin Ratio Rank: 82

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.

LDRI vs. TDTT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI) and FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT). 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.

	LDRI	TDTT	Difference
Sharpe ratio Return per unit of total volatility	2.41	2.54	-0.13
Sortino ratio Return per unit of downside risk	3.67	4.20	-0.53
Omega ratio Gain probability vs. loss probability	1.54	1.51	+0.02
Calmar ratio Return relative to maximum drawdown	7.56	5.17	+2.39
Martin ratio Return relative to average drawdown	20.35	16.59	+3.76
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LDRI vs. TDTT - Sharpe Ratio Comparison

The current LDRI Sharpe Ratio is 2.41, which is comparable to the TDTT Sharpe Ratio of 2.54. The chart below compares the historical Sharpe Ratios of LDRI and TDTT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LDRI	TDTT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	2.54	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.78	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.92	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.26	0.69	+1.57

Drawdowns

LDRI vs. TDTT - Drawdown Comparison

The maximum LDRI drawdown since its inception was -0.85%, smaller than the maximum TDTT drawdown of -6.97%. Use the drawdown chart below to compare losses from any high point for LDRI and TDTT.

Drawdown Indicators

	LDRI	TDTT	Difference
Max Drawdown Largest peak-to-trough decline	-0.85%	-6.97%	+6.12%
Max Drawdown (1Y) Largest decline over 1 year	-0.60%	-0.90%	+0.30%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.53%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-6.97%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-6.97%	—
Current Drawdown Current decline from peak	-0.04%	-0.14%	+0.10%
Average Drawdown Average peak-to-trough decline	-0.20%	-1.60%	+1.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.22%	0.28%	-0.06%

Volatility

LDRI vs. TDTT - Volatility Comparison

iShares iBonds 1-5 Year TIPS Ladder ETF (LDRI) and FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) have volatilities of 0.46% and 0.46%, 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.

Volatility by Period

	LDRI	TDTT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.46%	0.46%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	1.38%	1.21%	+0.17%
Volatility (1Y) Calculated over the trailing 1-year period	1.88%	1.85%	+0.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.28%	3.67%	-1.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.28%	3.38%	-1.10%

LDRI vs. TDTT - Expense Ratio Comparison

LDRI has a 0.10% expense ratio, which is lower than TDTT's 0.18% 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

LDRI vs. TDTT - Dividend Comparison

LDRI's dividend yield for the trailing twelve months is around 3.52%, less than TDTT's 4.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
LDRI iShares iBonds 1-5 Year TIPS Ladder ETF	3.52%	4.23%	0.83%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund	4.54%	4.52%	4.01%	3.88%	6.97%	4.53%	1.15%	1.91%	2.48%	1.88%	1.01%

Frequently Asked Questions

Can I hold both LDRI and TDTT in my portfolio?

LDRI and TDTT have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LDRI or TDTT?

TDTT has higher volatility (0.46%) compared to LDRI (0.46%). In terms of maximum drawdown, LDRI dropped -0.85% vs TDTT's -6.97%.

Which ETF is better, LDRI or TDTT?

On 1-year performance, TDTT leads with 4.65% vs 4.51% for LDRI. On fees, LDRI is cheaper at 0.10% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LDRI or TDTT?

Over the 1-year period, TDTT has performed better with a 4.65% return vs 4.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LDRI or TDTT?

LDRI is cheaper with a 0.10% expense ratio, compared with 0.18% for TDTT.

Which ETF pays a higher dividend yield, LDRI or TDTT?

TDTT has the higher dividend yield at 4.54%, compared with 3.52% for LDRI.

What is the main difference between LDRI and TDTT?

LDRI tracks BlackRock iBonds® 1-5 Year TIPS Ladder Index, while TDTT tracks iBoxx 3-Year Target Duration TIPS. They also come from different issuers: iShares and Northern Trust. Their fees differ too: 0.10% for LDRI and 0.18% for TDTT.

Which has better risk-adjusted returns?

TDTT currently has the higher Sharpe Ratio (2.54 vs 2.41), 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.