MBB vs. TIP
MBB (iShares MBS Bond ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - MBB is a Mortgage Backed Securities fund tracking the Barclays Capital U.S. MBS Index, while TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 10 years, MBB returned 1.31%/yr vs 2.53%/yr for TIP. A 0.67 correlation means they provide meaningful diversification when combined. MBB charges 0.06%/yr vs 0.18%/yr for TIP.
Performance
MBB vs. TIP - Performance Comparison
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Returns By Period
In the year-to-date period, MBB achieves a 0.86% return, which is significantly lower than TIP's 1.40% return. Over the past 10 years, MBB has underperformed TIP with an annualized return of 1.31%, while TIP has yielded a comparatively higher 2.53% annualized return.
MBB
- 1D
- -0.15%
- 1M
- 1.22%
- YTD
- 0.86%
- 6M
- 1.51%
- 1Y
- 6.41%
- 3Y*
- 4.55%
- 5Y*
- 0.38%
- 10Y*
- 1.31%
TIP
- 1D
- 0.01%
- 1M
- 0.25%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.76%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
MBB vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 0.86% | 8.38% | 1.31% | 5.01% | -11.74% | -1.43% | 4.08% | 6.18% | 0.82% | 2.49% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between MBB 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 | 0.72 |
Correlation (All Time) Calculated using the full available price history since Mar 16, 2007 | 0.67 |
The correlation between MBB and TIP shifts across timeframes, from 0.67 (all time) to 0.87 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
MBB vs. TIP — Risk / Return Rank
MBB
TIP
MBB vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MBS Bond ETF (MBB) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| MBB | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.04 | ||
| Sortino ratioReturn per unit of downside risk | -0.16 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.24 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 2.01 | 2.34 | -0.34 |
| Martin ratioReturn relative to average drawdown | 6.39 | 7.00 | -0.61 |
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Drawdowns
MBB vs. TIP - Drawdown Comparison
The maximum MBB drawdown since its inception was -17.64%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for MBB and TIP.
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Drawdown Indicators
| MBB | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.64% | -14.57% | -3.07% |
Max Drawdown (1Y)Largest decline over 1 year | -2.94% | -1.98% | -0.96% |
Max Drawdown (3Y)Largest decline over 3 years | -7.68% | -4.54% | -3.14% |
Max Drawdown (5Y)Largest decline over 5 years | -17.19% | -14.51% | -2.68% |
Max Drawdown (10Y)Largest decline over 10 years | -17.64% | -14.51% | -3.13% |
Current DrawdownCurrent decline from peak | -1.24% | -0.46% | -0.78% |
Average DrawdownAverage peak-to-trough decline | -2.35% | -3.43% | +1.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 0.66% | +0.26% |
Volatility
MBB vs. TIP - Volatility Comparison
iShares MBS Bond ETF (MBB) has a higher volatility of 1.58% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that MBB's price experiences larger fluctuations and is considered to be riskier than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MBB | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.58% | 1.03% | +0.55% |
Volatility (6M)Calculated over the trailing 6-month period | 3.28% | 2.32% | +0.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.46% | 3.39% | +1.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.82% | 6.21% | +0.61% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.31% | 5.74% | -0.43% |
MBB vs. TIP - Expense Ratio Comparison
MBB has a 0.06% expense ratio, which is lower than TIP'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
MBB vs. TIP - Dividend Comparison
MBB's dividend yield for the trailing twelve months is around 4.26%, more than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MBB iShares MBS Bond ETF | 4.26% | 4.21% | 3.94% | 3.40% | 2.31% | 1.05% | 2.10% | 2.77% | 2.64% | 2.23% | 2.58% | 2.66% |
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
MBB 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.
MBB has higher volatility (1.58%) compared to TIP (1.03%). In terms of maximum drawdown, MBB dropped -17.64% vs TIP's -14.57%.
On 10-year performance, TIP leads with 2.53% vs 1.31% for MBB. On fees, MBB is cheaper at 0.06% per year. On volatility, TIP has been the lower-risk option at 1.03%. 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 2.53% return vs 1.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MBB is cheaper with a 0.06% expense ratio, compared with 0.18% for TIP.
MBB has the higher dividend yield at 4.26%, compared with 3.76% for TIP.
MBB is categorized as Mortgage Backed Securities, while TIP is Inflation-Protected Bonds. MBB tracks Barclays Capital U.S. MBS Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. Their fees differ too: 0.06% for MBB and 0.18% for TIP.
TIP currently has the higher Sharpe Ratio (1.37 vs 1.33), 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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