PFFD vs. TIP
PFFD (Global X U.S. Preferred ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - PFFD is a Preferred Stock/Convertible Bonds fund tracking the ICE BofAML Diversified Core U.S. Preferred Securities 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 5 years, PFFD returned -0.25%/yr vs 0.91%/yr for TIP. At a 0.32 correlation, their price movements are largely independent. PFFD charges 0.23%/yr vs 0.18%/yr for TIP.
Performance
PFFD vs. TIP - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, PFFD achieves a 2.18% return, which is significantly higher than TIP's 1.40% return.
PFFD
- 1D
- 0.27%
- 1M
- 0.42%
- YTD
- 2.18%
- 6M
- 2.18%
- 1Y
- 7.82%
- 3Y*
- 5.67%
- 5Y*
- -0.25%
- 10Y*
- —
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%
PFFD vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PFFD Global X U.S. Preferred ETF | 2.18% | 3.22% | 7.07% | 6.85% | -20.20% | 5.07% | 8.90% | 17.43% | -3.94% | 0.69% |
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 0.37% |
Correlation
The correlation between PFFD and TIP is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Sep 13, 2017 | 0.32 |
The correlation between PFFD and TIP shifts across timeframes, from 0.32 (all time) to 0.49 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
PFFD vs. TIP — Risk / Return Rank
PFFD
TIP
PFFD vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Global X U.S. Preferred ETF (PFFD) 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.
| PFFD | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.38 | ||
| Sortino ratioReturn per unit of downside risk | -0.67 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.24 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.21 | 2.34 | -1.13 |
| Martin ratioReturn relative to average drawdown | 3.55 | 7.00 | -3.45 |
Loading charts...
Drawdowns
PFFD vs. TIP - Drawdown Comparison
The maximum PFFD drawdown since its inception was -30.93%, which is greater than TIP's maximum drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for PFFD and TIP.
Loading charts...
Drawdown Indicators
| PFFD | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.93% | -14.57% | -16.36% |
Max Drawdown (1Y)Largest decline over 1 year | -5.97% | -1.98% | -3.99% |
Max Drawdown (3Y)Largest decline over 3 years | -10.84% | -4.54% | -6.30% |
Max Drawdown (5Y)Largest decline over 5 years | -24.45% | -14.51% | -9.94% |
Max Drawdown (10Y)Largest decline over 10 years | — | -14.51% | — |
Current DrawdownCurrent decline from peak | -3.78% | -0.46% | -3.32% |
Average DrawdownAverage peak-to-trough decline | -6.58% | -3.43% | -3.15% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.03% | 0.66% | +1.37% |
Volatility
PFFD vs. TIP - Volatility Comparison
Global X U.S. Preferred ETF (PFFD) has a higher volatility of 2.15% compared to iShares TIPS Bond ETF (TIP) at 1.03%. This indicates that PFFD'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.
Loading charts...
Volatility by Period
| PFFD | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.15% | 1.03% | +1.12% |
Volatility (6M)Calculated over the trailing 6-month period | 5.40% | 2.32% | +3.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.29% | 3.39% | +3.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.99% | 6.21% | +4.78% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.74% | 5.74% | +7.00% |
PFFD vs. TIP - Expense Ratio Comparison
PFFD has a 0.23% expense ratio, which is higher than TIP's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
PFFD vs. TIP - Dividend Comparison
PFFD's dividend yield for the trailing twelve months is around 6.38%, more than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PFFD Global X U.S. Preferred ETF | 6.38% | 6.37% | 6.42% | 6.49% | 6.63% | 5.09% | 5.17% | 5.48% | 6.21% | 1.94% | 0.00% | 0.00% |
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
PFFD and TIP have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PFFD has higher volatility (2.15%) compared to TIP (1.03%). In terms of maximum drawdown, PFFD dropped -30.93% vs TIP's -14.57%.
On 5-year performance, TIP leads with 0.91% vs -0.25% for PFFD. On fees, TIP is cheaper at 0.18% 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 5-year period, TIP has performed better with a 0.91% return vs -0.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TIP is cheaper with a 0.18% expense ratio, compared with 0.23% for PFFD.
PFFD has the higher dividend yield at 6.38%, compared with 3.76% for TIP.
PFFD is categorized as Preferred Stock/Convertible Bonds, while TIP is Inflation-Protected Bonds. PFFD tracks ICE BofAML Diversified Core U.S. Preferred Securities Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: Global X and iShares. Their fees differ too: 0.23% for PFFD and 0.18% for TIP.
TIP currently has the higher Sharpe Ratio (1.37 vs 0.99), 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.
Find the right allocation for PFFD and TIP
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer