TAGG vs. IBTO
TAGG (T. Rowe Price QM U.S. Bond ETF) and IBTO (iShares iBonds Dec 2033 Term Treasury ETF) are both Intermediate Core Bond funds. TAGG is actively managed, while IBTO is passively managed. Over the past year, TAGG returned 5.22% vs 4.04% for IBTO. Their correlation of 0.94 suggests significant overlap in exposure. TAGG charges 0.08%/yr vs 0.07%/yr for IBTO.
Performance
TAGG vs. IBTO - Performance Comparison
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Returns By Period
In the year-to-date period, TAGG achieves a 0.18% return, which is significantly higher than IBTO's -0.58% return.
TAGG
- 1D
- -0.17%
- 1M
- 0.18%
- YTD
- 0.18%
- 6M
- 0.16%
- 1Y
- 5.22%
- 3Y*
- 4.26%
- 5Y*
- —
- 10Y*
- —
IBTO
- 1D
- -0.21%
- 1M
- -0.17%
- YTD
- -0.58%
- 6M
- -1.02%
- 1Y
- 4.04%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TAGG vs. IBTO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
TAGG T. Rowe Price QM U.S. Bond ETF | 0.18% | 7.40% | 1.73% | 3.18% |
IBTO iShares iBonds Dec 2033 Term Treasury ETF | -0.58% | 8.23% | -0.87% | 1.71% |
Correlation
The correlation between TAGG and IBTO is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Jun 30, 2023 | 0.94 |
The correlation between TAGG and IBTO has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.
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Return for Risk
TAGG vs. IBTO — Risk / Return Rank
TAGG
IBTO
TAGG vs. IBTO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for T. Rowe Price QM U.S. Bond ETF (TAGG) and iShares iBonds Dec 2033 Term Treasury ETF (IBTO). 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.
| TAGG | IBTO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.46 | ||
| Sortino ratioReturn per unit of downside risk | +0.66 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.16 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.64 | 1.11 | +0.53 |
| Martin ratioReturn relative to average drawdown | 4.86 | 3.21 | +1.65 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TAGG | IBTO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.37 | 0.91 | +0.46 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.04 | 0.43 | -0.39 |
Drawdowns
TAGG vs. IBTO - Drawdown Comparison
The maximum TAGG drawdown since its inception was -17.26%, which is greater than IBTO's maximum drawdown of -8.36%. Use the drawdown chart below to compare losses from any high point for TAGG and IBTO.
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Drawdown Indicators
| TAGG | IBTO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -17.26% | -8.36% | -8.90% |
Max Drawdown (1Y)Largest decline over 1 year | -3.19% | -3.66% | +0.47% |
Max Drawdown (3Y)Largest decline over 3 years | -6.40% | — | — |
Current DrawdownCurrent decline from peak | -2.03% | -2.63% | +0.60% |
Average DrawdownAverage peak-to-trough decline | -6.87% | -2.37% | -4.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.08% | 1.26% | -0.18% |
Volatility
TAGG vs. IBTO - Volatility Comparison
The current volatility for T. Rowe Price QM U.S. Bond ETF (TAGG) is 1.19%, while iShares iBonds Dec 2033 Term Treasury ETF (IBTO) has a volatility of 1.32%. This indicates that TAGG experiences smaller price fluctuations and is considered to be less risky than IBTO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TAGG | IBTO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.19% | 1.32% | -0.13% |
Volatility (6M)Calculated over the trailing 6-month period | 2.69% | 3.02% | -0.33% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.83% | 4.46% | -0.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.53% | 6.61% | -0.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.53% | 6.61% | -0.08% |
TAGG vs. IBTO - Expense Ratio Comparison
TAGG has a 0.08% expense ratio, which is higher than IBTO's 0.07% 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%.
Dividends
TAGG vs. IBTO - Dividend Comparison
TAGG's dividend yield for the trailing twelve months is around 4.58%, more than IBTO's 4.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
IBTO iShares iBonds Dec 2033 Term Treasury ETF | 4.15% | 4.05% | 4.23% | 1.66% | 0.00% | 0.00% |
TAGG T. Rowe Price QM U.S. Bond ETF | 4.58% | 4.36% | 4.36% | 3.48% | 3.67% | 0.33% |
Frequently Asked Questions
With a correlation of 0.92, TAGG and IBTO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
IBTO has higher volatility (1.32%) compared to TAGG (1.19%). In terms of maximum drawdown, TAGG dropped -17.26% vs IBTO's -8.36%.
On 1-year performance, TAGG leads with 5.22% vs 4.04% for IBTO. On fees, IBTO is cheaper at 0.07% per year. On volatility, TAGG has been the lower-risk option at 1.19%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, TAGG has performed better with a 5.22% return vs 4.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBTO is cheaper with a 0.07% expense ratio, compared with 0.08% for TAGG.
TAGG has the higher dividend yield at 4.58%, compared with 4.15% for IBTO.
They also come from different issuers: T. Rowe Price and iShares. Their fees differ too: 0.08% for TAGG and 0.07% for IBTO.
TAGG currently has the higher Sharpe Ratio (1.37 vs 0.91), 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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