STIP vs. TLT
Compare and contrast key facts about iShares 0-5 Year TIPS Bond ETF (STIP) and iShares 20+ Year Treasury Bond ETF (TLT).
STIP and TLT 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. TLT is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. 20+ Year Treasury Bond Index. It was launched on Jul 26, 2002. Both STIP and TLT 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 TLT.
Performance
STIP vs. TLT - Performance Comparison
Returns By Period
In the year-to-date period, STIP achieves a 4.40% return, which is significantly higher than TLT's -5.85% return. Over the past 10 years, STIP has outperformed TLT with an annualized return of 2.38%, while TLT has yielded a comparatively lower -0.34% annualized return.
STIP
4.40%
-0.30%
2.89%
6.03%
3.49%
2.38%
TLT
-5.85%
-5.17%
0.53%
4.54%
-5.85%
-0.34%
Key characteristics
| STIP | TLT | |
|---|---|---|
| Sharpe Ratio | 3.04 | 0.40 |
| Sortino Ratio | 5.08 | 0.65 |
| Omega Ratio | 1.67 | 1.07 |
| Calmar Ratio | 4.49 | 0.13 |
| Martin Ratio | 23.03 | 0.95 |
| Ulcer Index | 0.27% | 6.17% |
| Daily Std Dev | 2.03% | 14.79% |
| Max Drawdown | -5.50% | -48.35% |
| Current Drawdown | -0.63% | -41.33% |
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
STIP vs. TLT - Expense Ratio Comparison
STIP has a 0.06% expense ratio, which is lower than TLT's 0.15% 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%.
Correlation
The correlation between STIP and TLT is 0.39, 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.
Risk-Adjusted Performance
STIP vs. TLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 0-5 Year TIPS Bond ETF (STIP) and iShares 20+ Year Treasury Bond ETF (TLT). 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. TLT - Dividend Comparison
STIP's dividend yield for the trailing twelve months is around 2.46%, less than TLT's 4.08% 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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.08% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% | 2.67% | 3.26% |
Drawdowns
STIP vs. TLT - Drawdown Comparison
The maximum STIP drawdown since its inception was -5.50%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for STIP and TLT. For additional features, visit the drawdowns tool.
Volatility
STIP vs. TLT - Volatility Comparison
The current volatility for iShares 0-5 Year TIPS Bond ETF (STIP) is 0.48%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 4.90%. This indicates that STIP experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.