STIP vs. SPY
STIP (iShares 0-5 Year TIPS Bond ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - STIP is a Inflation-Protected Bonds fund tracking the Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L), while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, STIP returned 3.14%/yr vs 15.42%/yr for SPY. At a 0.05 correlation, their price movements are largely independent. STIP charges 0.06%/yr vs 0.09%/yr for SPY.
Performance
STIP vs. SPY - Performance Comparison
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Returns By Period
In the year-to-date period, STIP achieves a 1.87% return, which is significantly lower than SPY's 9.07% return. Over the past 10 years, STIP has underperformed SPY with an annualized return of 3.14%, while SPY has yielded a comparatively higher 15.42% annualized return.
STIP
- 1D
- -0.02%
- 1M
- -0.04%
- YTD
- 1.87%
- 6M
- 1.97%
- 1Y
- 4.54%
- 3Y*
- 5.26%
- 5Y*
- 3.38%
- 10Y*
- 3.14%
SPY
- 1D
- 0.54%
- 1M
- 0.35%
- YTD
- 9.07%
- 6M
- 9.42%
- 1Y
- 25.67%
- 3Y*
- 20.86%
- 5Y*
- 13.36%
- 10Y*
- 15.42%
STIP vs. SPY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
STIP iShares 0-5 Year TIPS Bond ETF | 1.87% | 6.03% | 4.77% | 4.63% | -3.02% | 5.68% | 5.18% | 4.89% | 0.54% | 0.74% |
SPY State Street SPDR S&P 500 ETF | 9.07% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 21.71% |
Correlation
The correlation between STIP and SPY is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.03 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.15 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.09 |
Correlation (All Time) Calculated using the full available price history since Dec 3, 2010 | 0.05 |
The correlation between STIP and SPY shifts across timeframes, from 0.03 (1 year) to 0.15 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
STIP vs. SPY — Risk / Return Rank
STIP
SPY
STIP vs. SPY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 0-5 Year TIPS Bond ETF (STIP) and State Street SPDR S&P 500 ETF (SPY). 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.
| STIP | SPY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.18 | ||
| Sortino ratioReturn per unit of downside risk | +2.79 | ||
| Omega ratioGain probability vs. loss probability | 1.68 | 1.36 | +0.32 |
| Calmar ratioReturn relative to maximum drawdown | 6.63 | 2.74 | +3.89 |
| Martin ratioReturn relative to average drawdown | 25.91 | 12.39 | +13.52 |
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Drawdowns
STIP vs. SPY - Drawdown Comparison
The maximum STIP drawdown since its inception was -5.50%, smaller than the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for STIP and SPY.
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Drawdown Indicators
| STIP | SPY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.50% | -55.19% | +49.69% |
Max Drawdown (1Y)Largest decline over 1 year | -0.69% | -8.88% | +8.19% |
Max Drawdown (3Y)Largest decline over 3 years | -0.95% | -18.76% | +17.81% |
Max Drawdown (5Y)Largest decline over 5 years | -5.50% | -24.50% | +19.00% |
Max Drawdown (10Y)Largest decline over 10 years | -5.50% | -33.72% | +28.22% |
Current DrawdownCurrent decline from peak | -0.20% | -2.35% | +2.15% |
Average DrawdownAverage peak-to-trough decline | -0.99% | -9.04% | +8.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.18% | 1.97% | -1.79% |
Volatility
STIP vs. SPY - Volatility Comparison
The current volatility for iShares 0-5 Year TIPS Bond ETF (STIP) is 0.41%, while State Street SPDR S&P 500 ETF (SPY) has a volatility of 4.34%. This indicates that STIP experiences smaller price fluctuations and is considered to be less risky than SPY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| STIP | SPY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.41% | 4.34% | -3.93% |
Volatility (6M)Calculated over the trailing 6-month period | 1.01% | 9.58% | -8.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.45% | 12.29% | -10.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.74% | 17.12% | -14.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.45% | 17.96% | -15.51% |
STIP vs. SPY - Expense Ratio Comparison
STIP has a 0.06% expense ratio, which is lower than SPY's 0.09% 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
STIP vs. SPY - Dividend Comparison
STIP's dividend yield for the trailing twelve months is around 4.31%, more than SPY's 1.00% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPY State Street SPDR S&P 500 ETF | 1.00% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
STIP iShares 0-5 Year TIPS Bond ETF | 4.31% | 4.11% | 2.62% | 2.84% | 6.04% | 4.15% | 1.40% | 2.06% | 2.44% | 1.59% | 0.89% | 0.00% |
Frequently Asked Questions
STIP and SPY have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SPY has higher volatility (4.34%) compared to STIP (0.41%). In terms of maximum drawdown, STIP dropped -5.50% vs SPY's -55.19%.
On 10-year performance, SPY leads with 15.42% vs 3.14% for STIP. On fees, STIP is cheaper at 0.06% per year. On volatility, STIP has been the lower-risk option at 0.41%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SPY has performed better with a 15.42% return vs 3.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
STIP is cheaper with a 0.06% expense ratio, compared with 0.09% for SPY.
STIP has the higher dividend yield at 4.31%, compared with 1.00% for SPY.
STIP is categorized as Inflation-Protected Bonds, while SPY is S&P 500. STIP tracks Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Years Index (Series-L), while SPY tracks S&P 500 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.06% for STIP and 0.09% for SPY.
STIP currently has the higher Sharpe Ratio (3.17 vs 1.98), 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.
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