STPZ vs. TIP
Compare and contrast key facts about PIMCO 1-5 Year US TIPS Index ETF (STPZ) and iShares TIPS Bond ETF (TIP).
STPZ and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. STPZ is a passively managed fund by PIMCO that tracks the performance of the ICE BofA US Inflation-Linked Treasury (1-5 Y). It was launched on Aug 20, 2009. 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 STPZ 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: STPZ or TIP.
Key characteristics
| STPZ | TIP | |
|---|---|---|
| YTD Return | 4.07% | 2.17% |
| 1Y Return | 5.70% | 5.43% |
| 3Y Return (Ann) | 1.21% | -2.44% |
| 5Y Return (Ann) | 3.08% | 1.91% |
| 10Y Return (Ann) | 2.09% | 2.01% |
| Sharpe Ratio | 2.53 | 1.26 |
| Sortino Ratio | 4.17 | 1.87 |
| Omega Ratio | 1.53 | 1.22 |
| Calmar Ratio | 1.86 | 0.50 |
| Martin Ratio | 16.71 | 5.70 |
| Ulcer Index | 0.37% | 1.10% |
| Daily Std Dev | 2.44% | 5.01% |
| Max Drawdown | -6.76% | -14.56% |
| Current Drawdown | -1.00% | -7.43% |
Correlation
The correlation between STPZ and TIP is 0.77, 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
STPZ vs. TIP - Performance Comparison
In the year-to-date period, STPZ achieves a 4.07% return, which is significantly higher than TIP's 2.17% return. Both investments have delivered pretty close results over the past 10 years, with STPZ having a 2.09% 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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STPZ vs. TIP - Expense Ratio Comparison
STPZ has a 0.20% expense ratio, which is higher than TIP's 0.19% 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%.
Risk-Adjusted Performance
STPZ vs. TIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for PIMCO 1-5 Year US TIPS Index ETF (STPZ) 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
STPZ vs. TIP - Dividend Comparison
STPZ's dividend yield for the trailing twelve months is around 1.83%, less than TIP's 2.41% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
STPZ PIMCO 1-5 Year US TIPS Index ETF | 1.83% | 1.63% | 5.88% | 3.65% | 1.86% | 1.76% | 2.39% | 1.51% | 0.65% | 0.49% | 0.86% | 0.09% |
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
STPZ vs. TIP - Drawdown Comparison
The maximum STPZ drawdown since its inception was -6.76%, smaller than the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for STPZ and TIP. For additional features, visit the drawdowns tool.
Volatility
STPZ vs. TIP - Volatility Comparison
The current volatility for PIMCO 1-5 Year US TIPS Index ETF (STPZ) is 0.56%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.31%. This indicates that STPZ experiences smaller price fluctuations and is considered to be less risky than TIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.