STIP vs. BND
Compare and contrast key facts about iShares 0-5 Year TIPS Bond ETF (STIP) and Vanguard Total Bond Market ETF (BND).
STIP and BND are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. STIP is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L). It was launched on Dec 1, 2010. BND is a passively managed fund by Vanguard that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Apr 3, 2007. Both STIP and BND 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: STIP or BND.
Performance
STIP vs. BND - Performance Comparison
Returns By Period
In the year-to-date period, STIP achieves a 4.40% return, which is significantly higher than BND's 1.55% return. Over the past 10 years, STIP has outperformed BND with an annualized return of 2.38%, while BND has yielded a comparatively lower 1.40% annualized return.
STIP
4.40%
-0.30%
2.89%
6.03%
3.49%
2.38%
BND
1.55%
-1.53%
2.79%
6.33%
-0.32%
1.40%
Key characteristics
| STIP | BND | |
|---|---|---|
| Sharpe Ratio | 3.04 | 1.25 |
| Sortino Ratio | 5.08 | 1.83 |
| Omega Ratio | 1.67 | 1.22 |
| Calmar Ratio | 4.49 | 0.48 |
| Martin Ratio | 23.03 | 4.20 |
| Ulcer Index | 0.27% | 1.70% |
| Daily Std Dev | 2.03% | 5.68% |
| Max Drawdown | -5.50% | -18.84% |
| Current Drawdown | -0.63% | -9.21% |
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STIP vs. BND - Expense Ratio Comparison
STIP has a 0.06% expense ratio, which is higher than BND's 0.03% 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%.
Correlation
The correlation between STIP and BND is 0.53, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Risk-Adjusted Performance
STIP vs. BND - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 0-5 Year TIPS Bond ETF (STIP) and Vanguard Total Bond Market ETF (BND). 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
STIP vs. BND - Dividend Comparison
STIP's dividend yield for the trailing twelve months is around 2.46%, less than BND's 3.58% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 2.46% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.43% | 1.59% | 0.89% | 0.00% | 0.75% | 0.31% |
BND Vanguard Total Bond Market ETF | 3.58% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
Drawdowns
STIP vs. BND - Drawdown Comparison
The maximum STIP drawdown since its inception was -5.50%, smaller than the maximum BND drawdown of -18.84%. Use the drawdown chart below to compare losses from any high point for STIP and BND. For additional features, visit the drawdowns tool.
Volatility
STIP vs. BND - Volatility Comparison
The current volatility for iShares 0-5 Year TIPS Bond ETF (STIP) is 0.48%, while Vanguard Total Bond Market ETF (BND) has a volatility of 1.64%. This indicates that STIP experiences smaller price fluctuations and is considered to be less risky than BND based on this measure. The chart below showcases a comparison of their rolling one-month volatility.