PEPS vs. IBIC

Last updated Jun 4, 2026

PEPS (Parametric Equity Plus ETF) and IBIC (iShares iBonds Oct 2026 Term TIPS ETF) are both exchange-traded funds - PEPS is a Derivative Income fund actively managed by Parametric, while IBIC is a Inflation-Protected Bonds fund tracking the ICE 2026 Maturity US Inflation-Linked Treasury Index. PEPS is actively managed, while IBIC is passively managed. Over the past year, PEPS returned 31.83% vs 4.54% for IBIC. At a correlation of -0.24, they often move in opposite directions. Both charge a 0.10% expense ratio.

Performance

PEPS vs. IBIC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Parametric Equity Plus ETF (PEPS) and iShares iBonds Oct 2026 Term TIPS ETF (IBIC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PEPS achieves a 10.67% return, which is significantly higher than IBIC's 2.37% return.

PEPS

• 1D: -0.51%
• 1M: 6.44%
• YTD: 10.67%
• 6M: 10.79%
• 1Y: 31.83%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IBIC

• 1D: 0.02%
• 1M: 0.27%
• YTD: 2.37%
• 6M: 2.51%
• 1Y: 4.54%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PEPS vs. IBIC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PEPS Parametric Equity Plus ETF	10.67%	20.32%	-1.45%
IBIC iShares iBonds Oct 2026 Term TIPS ETF	2.37%	4.96%	0.49%

Correlation

The correlation between PEPS and IBIC is -0.22, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.22
Correlation (All Time) Calculated using the full available price history since Nov 11, 2024	-0.24

Return for Risk

PEPS vs. IBIC — Risk / Return Rank

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

PEPS

PEPS Risk / Return Rank: 73
PEPS Sharpe Ratio Rank: 76
PEPS Sortino Ratio Rank: 71
PEPS Omega Ratio Rank: 75
PEPS Calmar Ratio Rank: 66
PEPS Martin Ratio Rank: 79

IBIC

IBIC Risk / Return Rank: 98
IBIC Sharpe Ratio Rank: 97
IBIC Sortino Ratio Rank: 98
IBIC Omega Ratio Rank: 98
IBIC Calmar Ratio Rank: 98
IBIC Martin Ratio Rank: 98

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.

PEPS vs. IBIC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Plus ETF (PEPS) and iShares iBonds Oct 2026 Term TIPS ETF (IBIC). 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.

	PEPS	IBIC	Difference
Sharpe ratio: Return per unit of total volatility	2.45	5.05	-2.60
Sortino ratio: Return per unit of downside risk	3.22	9.12	-5.90
Omega ratio: Gain probability vs. loss probability	1.45	2.24	-0.79
Calmar ratio: Return relative to maximum drawdown	3.26	17.27	-14.01
Martin ratio: Return relative to average drawdown	15.28	67.45	-52.17
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PEPS vs. IBIC - Sharpe Ratio Comparison

The current PEPS Sharpe Ratio is 2.45, which is lower than the IBIC Sharpe Ratio of 5.05. The chart below compares the historical Sharpe Ratios of PEPS and IBIC, 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

	PEPS	IBIC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	5.05	-2.60
Sharpe Ratio (All Time) Calculated using the full available price history	1.05	3.49	-2.44

Drawdowns

PEPS vs. IBIC - Drawdown Comparison

The maximum PEPS drawdown since its inception was -21.26%, which is greater than IBIC's maximum drawdown of -0.90%. Use the drawdown chart below to compare losses from any high point for PEPS and IBIC.

Drawdown Indicators

	PEPS	IBIC	Difference
Max Drawdown Largest peak-to-trough decline	-21.26%	-0.90%	-20.36%
Max Drawdown (1Y) Largest decline over 1 year	-9.80%	-0.26%	-9.54%
Current Drawdown Current decline from peak	-0.51%	-0.13%	-0.38%
Average Drawdown Average peak-to-trough decline	-2.77%	-0.10%	-2.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	0.07%	+2.02%

Volatility

PEPS vs. IBIC - Volatility Comparison

Parametric Equity Plus ETF (PEPS) has a higher volatility of 2.77% compared to iShares iBonds Oct 2026 Term TIPS ETF (IBIC) at 0.33%. This indicates that PEPS's price experiences larger fluctuations and is considered to be riskier than IBIC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PEPS	IBIC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.77%	0.33%	+2.44%
Volatility (6M) Calculated over the trailing 6-month period	9.83%	0.67%	+9.16%
Volatility (1Y) Calculated over the trailing 1-year period	13.06%	0.90%	+12.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.31%	1.58%	+16.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.31%	1.58%	+16.73%

PEPS vs. IBIC - Expense Ratio Comparison

Both PEPS and IBIC have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

PEPS vs. IBIC - Dividend Comparison

PEPS's dividend yield for the trailing twelve months is around 0.88%, less than IBIC's 3.59% yield.

Position	TTM	2025	2024	2023
IBIC iShares iBonds Oct 2026 Term TIPS ETF	3.59%	4.43%	4.65%	0.83%
PEPS Parametric Equity Plus ETF	0.88%	1.00%	0.17%	0.00%

Frequently Asked Questions

Can I hold both PEPS and IBIC in my portfolio?

PEPS and IBIC have a correlation of -0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PEPS or IBIC?

PEPS has higher volatility (2.77%) compared to IBIC (0.33%). In terms of maximum drawdown, PEPS dropped -21.26% vs IBIC's -0.90%.

Which ETF is better, PEPS or IBIC?

On 1-year performance, PEPS leads with 31.83% vs 4.54% for IBIC. Both ETFs have the same 0.10% expense ratio. On volatility, IBIC has been the lower-risk option at 0.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PEPS or IBIC?

Over the 1-year period, PEPS has performed better with a 31.83% return vs 4.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PEPS or IBIC?

PEPS and IBIC have the same expense ratio: 0.10% per year.

Which ETF pays a higher dividend yield, PEPS or IBIC?

IBIC has the higher dividend yield at 3.59%, compared with 0.88% for PEPS.

What is the main difference between PEPS and IBIC?

PEPS is categorized as Derivative Income, while IBIC is Inflation-Protected Bonds. They also come from different issuers: Parametric and iShares.

Which has better risk-adjusted returns?

IBIC currently has the higher Sharpe Ratio (5.05 vs 2.45), 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.