PBTP vs. TIP
Compare and contrast key facts about Invesco PureBeta 0-5 Yr US TIPS ETF (PBTP) and iShares TIPS Bond ETF (TIP).
PBTP and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. PBTP is a passively managed fund by Invesco that tracks the performance of the ICE BofA U.S. Treasuries Inflation-Linked (0-5 Y). It was launched on Sep 22, 2017. 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 PBTP 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: PBTP or TIP.
Key characteristics
| PBTP | TIP | |
|---|---|---|
| YTD Return | 0.80% | -1.63% |
| 1Y Return | 2.60% | -2.03% |
| 3Y Return (Ann) | 2.00% | -1.64% |
| 5Y Return (Ann) | 3.03% | 1.88% |
| Sharpe Ratio | 1.12 | -0.24 |
| Daily Std Dev | 2.56% | 6.02% |
| Max Drawdown | -5.42% | -14.56% |
| Current Drawdown | -0.20% | -10.88% |
Correlation
The correlation between PBTP and TIP is 0.72, 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
PBTP vs. TIP - Performance Comparison
In the year-to-date period, PBTP achieves a 0.80% return, which is significantly higher than TIP's -1.63% 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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PBTP vs. TIP - Expense Ratio Comparison
PBTP has a 0.07% 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
PBTP vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco PureBeta 0-5 Yr US TIPS ETF (PBTP) 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
PBTP vs. TIP - Dividend Comparison
PBTP's dividend yield for the trailing twelve months is around 2.43%, less than TIP's 2.72% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PBTP Invesco PureBeta 0-5 Yr US TIPS ETF | 2.43% | 2.36% | 5.31% | 3.09% | 1.26% | 2.12% | 2.33% | 0.73% | 0.00% | 0.00% | 0.00% | 0.00% |
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
PBTP vs. TIP - Drawdown Comparison
The maximum PBTP drawdown since its inception was -5.42%, smaller than the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for PBTP and TIP. For additional features, visit the drawdowns tool.
Volatility
PBTP vs. TIP - Volatility Comparison
The current volatility for Invesco PureBeta 0-5 Yr US TIPS ETF (PBTP) is 0.56%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.59%. This indicates that PBTP 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.