SPIP vs. TIP
Compare and contrast key facts about SPDR Portfolio TIPS ETF (SPIP) and iShares TIPS Bond ETF (TIP).
SPIP and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SPIP is a passively managed fund by State Street that tracks the performance of the Bloomberg Barclays US Government Inflation-linked Bond Index. It was launched on May 25, 2007. 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 SPIP 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: SPIP or TIP.
Key characteristics
| SPIP | TIP | |
|---|---|---|
| YTD Return | 2.92% | 2.17% |
| 1Y Return | 5.50% | 5.43% |
| 3Y Return (Ann) | -2.68% | -2.44% |
| 5Y Return (Ann) | 1.91% | 1.91% |
| 10Y Return (Ann) | 2.06% | 2.01% |
| Sharpe Ratio | 1.10 | 1.26 |
| Sortino Ratio | 1.67 | 1.87 |
| Omega Ratio | 1.19 | 1.22 |
| Calmar Ratio | 0.48 | 0.50 |
| Martin Ratio | 5.41 | 5.70 |
| Ulcer Index | 1.19% | 1.10% |
| Daily Std Dev | 5.86% | 5.01% |
| Max Drawdown | -15.38% | -14.56% |
| Current Drawdown | -8.16% | -7.43% |
Correlation
The correlation between SPIP and TIP is 0.94, 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
SPIP vs. TIP - Performance Comparison
In the year-to-date period, SPIP achieves a 2.92% return, which is significantly higher than TIP's 2.17% return. Both investments have delivered pretty close results over the past 10 years, with SPIP having a 2.06% annualized return and TIP not far behind at 2.01%. 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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SPIP vs. TIP - Expense Ratio Comparison
SPIP has a 0.12% 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
SPIP vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio TIPS ETF (SPIP) 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
SPIP vs. TIP - Dividend Comparison
SPIP's dividend yield for the trailing twelve months is around 3.23%, more than TIP's 2.41% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPIP SPDR Portfolio TIPS ETF | 3.23% | 3.70% | 7.06% | 4.53% | 1.97% | 2.60% | 2.80% | 3.02% | 1.88% | 0.14% | 1.66% | 1.11% |
TIP iShares TIPS Bond ETF | 2.41% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
SPIP vs. TIP - Drawdown Comparison
The maximum SPIP drawdown since its inception was -15.38%, which is greater than TIP's maximum drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for SPIP and TIP. For additional features, visit the drawdowns tool.
Volatility
SPIP vs. TIP - Volatility Comparison
SPDR Portfolio TIPS ETF (SPIP) has a higher volatility of 1.42% compared to iShares TIPS Bond ETF (TIP) at 1.31%. This indicates that SPIP'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.