SHY vs. TIP
SHY (iShares 1-3 Year Treasury Bond ETF) and TIP (iShares TIPS Bond ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year 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, SHY returned 1.65%/yr vs 2.57%/yr for TIP. A 0.62 correlation means they provide meaningful diversification when combined. SHY charges 0.15%/yr vs 0.18%/yr for TIP.
Performance
SHY vs. TIP - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, SHY achieves a 0.43% return, which is significantly lower than TIP's 1.54% return. Over the past 10 years, SHY has underperformed TIP with an annualized return of 1.65%, while TIP has yielded a comparatively higher 2.57% annualized return.
SHY
- 1D
- -0.05%
- 1M
- 0.08%
- YTD
- 0.43%
- 6M
- 0.69%
- 1Y
- 3.32%
- 3Y*
- 4.03%
- 5Y*
- 1.71%
- 10Y*
- 1.65%
TIP
- 1D
- -0.18%
- 1M
- -0.09%
- YTD
- 1.54%
- 6M
- 1.06%
- 1Y
- 4.96%
- 3Y*
- 3.88%
- 5Y*
- 0.97%
- 10Y*
- 2.57%
SHY vs. TIP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 0.43% | 4.95% | 3.92% | 4.16% | -3.88% | -0.71% | 3.03% | 3.38% | 1.46% | 0.26% |
TIP iShares TIPS Bond ETF | 1.54% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
Correlation
The correlation between SHY and TIP is 0.74, 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 | 0.74 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Dec 8, 2003 | 0.62 |
The correlation between SHY and TIP shifts across timeframes, from 0.62 (all time) to 0.77 (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
SHY vs. TIP — Risk / Return Rank
SHY
TIP
SHY vs. TIP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) 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.
| SHY | TIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.03 | ||
| Sortino ratioReturn per unit of downside risk | +1.86 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.26 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 3.75 | 2.52 | +1.23 |
| Martin ratioReturn relative to average drawdown | 15.21 | 7.57 | +7.64 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| SHY | TIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.49 | 1.46 | +1.03 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.87 | 0.16 | +0.71 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.06 | 0.45 | +0.61 |
Sharpe Ratio (All Time)Calculated using the full available price history | 1.28 | 0.57 | +0.71 |
Drawdowns
SHY vs. TIP - Drawdown Comparison
The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for SHY and TIP.
Loading charts...
Drawdown Indicators
| SHY | TIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.71% | -14.57% | +8.86% |
Max Drawdown (1Y)Largest decline over 1 year | -0.89% | -1.98% | +1.09% |
Max Drawdown (3Y)Largest decline over 3 years | -0.97% | -4.54% | +3.57% |
Max Drawdown (5Y)Largest decline over 5 years | -5.71% | -14.51% | +8.80% |
Max Drawdown (10Y)Largest decline over 10 years | -5.71% | -14.51% | +8.80% |
Current DrawdownCurrent decline from peak | -0.31% | -0.32% | +0.01% |
Average DrawdownAverage peak-to-trough decline | -0.52% | -3.43% | +2.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.22% | 0.66% | -0.44% |
Volatility
SHY vs. TIP - Volatility Comparison
The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.35%, while iShares TIPS Bond ETF (TIP) has a volatility of 0.89%. This indicates that SHY 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.
Loading charts...
Volatility by Period
| SHY | TIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 0.89% | -0.54% |
Volatility (6M)Calculated over the trailing 6-month period | 0.92% | 2.29% | -1.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.34% | 3.41% | -2.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.98% | 6.21% | -4.23% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.57% | 5.74% | -4.17% |
SHY vs. TIP - Expense Ratio Comparison
SHY has a 0.15% 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
SHY vs. TIP - Dividend Comparison
SHY's dividend yield for the trailing twelve months is around 3.68%, less than TIP's 3.76% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SHY iShares 1-3 Year Treasury Bond ETF | 3.68% | 3.81% | 3.92% | 2.99% | 1.30% | 0.26% | 0.94% | 2.12% | 1.72% | 0.98% | 0.71% | 0.54% |
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
SHY and TIP have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TIP has higher volatility (0.89%) compared to SHY (0.35%). In terms of maximum drawdown, SHY dropped -5.71% vs TIP's -14.57%.
On 10-year performance, TIP leads with 2.57% vs 1.65% for SHY. On fees, SHY is cheaper at 0.15% per year. On volatility, SHY has been the lower-risk option at 0.35%. 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 2.57% return vs 1.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SHY is cheaper with a 0.15% expense ratio, compared with 0.18% for TIP.
TIP has the higher dividend yield at 3.76%, compared with 3.68% for SHY.
SHY is categorized as Government Bonds, while TIP is Inflation-Protected Bonds. SHY tracks ICE US Treasury 1-3 Year Index, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. Their fees differ too: 0.15% for SHY and 0.18% for TIP.
SHY currently has the higher Sharpe Ratio (2.49 vs 1.46), 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 SHY 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