STIP vs. DIA
Compare and contrast key facts about iShares 0-5 Year TIPS Bond ETF (STIP) and SPDR Dow Jones Industrial Average ETF (DIA).
STIP and DIA 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. DIA is a passively managed fund by State Street that tracks the performance of the Dow Jones Industrial Average. It was launched on Jan 14, 1998. Both STIP and DIA 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 DIA.
Key characteristics
| STIP | DIA | |
|---|---|---|
| YTD Return | 1.21% | 3.15% |
| 1Y Return | 3.04% | 18.99% |
| 3Y Return (Ann) | 1.95% | 6.22% |
| 5Y Return (Ann) | 3.27% | 10.02% |
| 10Y Return (Ann) | 2.02% | 11.32% |
| Sharpe Ratio | 1.23 | 1.79 |
| Daily Std Dev | 2.48% | 10.05% |
| Max Drawdown | -5.50% | -51.87% |
| Current Drawdown | 0.00% | -2.71% |
Correlation
The correlation between STIP and DIA is 0.04, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
STIP vs. DIA - Performance Comparison
In the year-to-date period, STIP achieves a 1.21% return, which is significantly lower than DIA's 3.15% return. Over the past 10 years, STIP has underperformed DIA with an annualized return of 2.02%, while DIA has yielded a comparatively higher 11.32% annualized return. 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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STIP vs. DIA - Expense Ratio Comparison
STIP has a 0.06% expense ratio, which is lower than DIA's 0.16% 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
STIP vs. DIA - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 0-5 Year TIPS Bond ETF (STIP) and SPDR Dow Jones Industrial Average ETF (DIA). 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. DIA - Dividend Comparison
STIP's dividend yield for the trailing twelve months is around 2.80%, more than DIA's 1.78% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 2.80% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.44% | 1.59% | 0.89% | 0.00% | 0.74% | 0.31% |
DIA SPDR Dow Jones Industrial Average ETF | 1.78% | 1.81% | 1.91% | 1.58% | 1.87% | 2.09% | 2.24% | 1.97% | 2.26% | 2.33% | 2.02% | 2.08% |
Drawdowns
STIP vs. DIA - Drawdown Comparison
The maximum STIP drawdown since its inception was -5.50%, smaller than the maximum DIA drawdown of -51.87%. Use the drawdown chart below to compare losses from any high point for STIP and DIA. For additional features, visit the drawdowns tool.
Volatility
STIP vs. DIA - Volatility Comparison
The current volatility for iShares 0-5 Year TIPS Bond ETF (STIP) is 0.65%, while SPDR Dow Jones Industrial Average ETF (DIA) has a volatility of 3.36%. This indicates that STIP experiences smaller price fluctuations and is considered to be less risky than DIA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.