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TDTF vs. TIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

TDTF vs. TIP

Last updated Jun 6, 2026

TDTF (FlexShares iBoxx 5-Year Target Duration TIPS Index Fund) and TIP (iShares TIPS Bond ETF) are both Inflation-Protected Bonds funds - TDTF tracks the iBoxx 5-Year Target Duration TIPS while TIP tracks the ICE U.S. Treasury Inflation Linked Bond Index. Both are passively managed. Over the past 10 years, TDTF returned 2.85%/yr vs 2.48%/yr for TIP. Their correlation of 0.89 suggests significant overlap in exposure. Both charge a 0.18% expense ratio.

Performance

TDTF vs. TIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) and iShares TIPS Bond ETF (TIP). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

The year-to-date returns for both investments are quite close, with TDTF having a 1.01% return and TIP slightly higher at 1.06%. Over the past 10 years, TDTF has outperformed TIP with an annualized return of 2.85%, while TIP has yielded a comparatively lower 2.48% annualized return.

TDTF

1D
-0.50%
1M
-0.80%
YTD
1.01%
6M
0.88%
1Y
4.54%
3Y*
4.35%
5Y*
1.61%
10Y*
2.85%

TIP

1D
-0.48%
1M
-0.57%
YTD
1.06%
6M
0.88%
1Y
4.37%
3Y*
3.65%
5Y*
0.88%
10Y*
2.48%
*Multi-year figures are annualized to reflect compound growth (CAGR)

TDTF vs. TIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
TDTF
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		1.01%7.83%2.40%4.10%-9.73%5.54%9.98%7.99%-0.82%1.93%
TIP
iShares TIPS Bond ETF		1.06%6.77%1.65%3.80%-12.26%5.68%10.84%8.35%-1.42%2.92%

Correlation

The correlation between TDTF and TIP 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 (3Y)
Calculated over the trailing 3-year period

0.95

Correlation (5Y)
Calculated over the trailing 5-year period

0.95

Correlation (10Y)
Calculated over the trailing 10-year period

0.93

Correlation (All Time)
Calculated using the full available price history since Sep 23, 2011

0.89

The correlation between TDTF and TIP has been stable across timeframes, ranging from 0.89 to 0.95 - a consistent structural relationship.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

FlexShares iBoxx 5-Year Target Duration TIPS Index Fund

iShares TIPS Bond ETF

Often compared with TDTF:
TDTF vs. JSCPTDTF vs. VABSTDTF vs. SPYTDTF vs. SPIBTDTF vs. JPLDTDTF vs. VTIPTDTF vs. CPII
Often compared with TIP:
TIP vs. SCHPTIP vs. VTIPTIP vs. SGOVTIP vs. STIPTIP vs. FIPDXTIP vs. BNDTIP vs. IEF

Return for Risk

TDTF vs. TIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
TDTF
TDTF Risk / Return Rank: 5151
Overall Rank
TDTF Sharpe Ratio Rank: 4545
Sharpe Ratio Rank
TDTF Sortino Ratio Rank: 4848
Sortino Ratio Rank
TDTF Omega Ratio Rank: 4444
Omega Ratio Rank
TDTF Calmar Ratio Rank: 6161
Calmar Ratio Rank
TDTF Martin Ratio Rank: 5858
Martin Ratio Rank
TIP
TIP Risk / Return Rank: 4040
Overall Rank
TIP Sharpe Ratio Rank: 3737
Sharpe Ratio Rank
TIP Sortino Ratio Rank: 3939
Sortino Ratio Rank
TIP Omega Ratio Rank: 3535
Omega Ratio Rank
TIP Calmar Ratio Rank: 4646
Calmar Ratio Rank
TIP Martin Ratio Rank: 4343
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TDTF vs. TIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) 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.

TDTFTIPDifference
Sharpe ratioReturn per unit of total volatility
1.49
1.28

+0.21

Sortino ratioReturn per unit of downside risk
2.25
1.95

+0.30

Omega ratioGain probability vs. loss probability

1.27

1.23

+0.04

Calmar ratioReturn relative to maximum drawdown

2.88

2.22

+0.66

Martin ratioReturn relative to average drawdown

9.63

6.71

+2.92

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TDTF vs. TIP - Sharpe Ratio Comparison

The current TDTF Sharpe Ratio is 1.49, which is comparable to the TIP Sharpe Ratio of 1.28. The chart below compares the historical Sharpe Ratios of TDTF and TIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

TDTFTIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.49

1.28

+0.21

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.28

0.14

+0.14

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.56

0.43

+0.13

Sharpe Ratio (All Time)

Calculated using the full available price history

0.47

0.57

-0.10

Drawdowns

TDTF vs. TIP - Drawdown Comparison

The maximum TDTF drawdown since its inception was -12.02%, smaller than the maximum TIP drawdown of -14.57%. Use the drawdown chart below to compare losses from any high point for TDTF and TIP.

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Drawdown Indicators

TDTFTIPDifference

Max Drawdown

Largest peak-to-trough decline

-12.02%

-14.57%

+2.55%

Max Drawdown (1Y)

Largest decline over 1 year

-1.58%

-1.98%

+0.40%

Max Drawdown (3Y)

Largest decline over 3 years

-3.79%

-4.54%

+0.75%

Max Drawdown (5Y)

Largest decline over 5 years

-12.02%

-14.51%

+2.49%

Max Drawdown (10Y)

Largest decline over 10 years

-12.02%

-14.51%

+2.49%

Current Drawdown

Current decline from peak

-1.07%

-0.79%

-0.28%

Average Drawdown

Average peak-to-trough decline

-2.91%

-3.43%

+0.52%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.47%

0.65%

-0.18%

Volatility

TDTF vs. TIP - Volatility Comparison

The current volatility for FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) is 0.86%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.01%. This indicates that TDTF 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.

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Volatility by Period

TDTFTIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

0.86%

1.01%

-0.15%

Volatility (6M)

Calculated over the trailing 6-month period

2.03%

2.33%

-0.30%

Volatility (1Y)

Calculated over the trailing 1-year period

3.08%

3.43%

-0.35%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

5.69%

6.21%

-0.52%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.07%

5.74%

-0.67%

TDTF vs. TIP - Expense Ratio Comparison

Both TDTF and TIP have an expense ratio of 0.18%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

TDTF vs. TIP - Dividend Comparison

TDTF's dividend yield for the trailing twelve months is around 4.73%, more than TIP's 3.77% yield.

PositionTTM20252024202320222021202020192018201720162015
TDTF
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		4.73%4.58%3.98%3.97%7.60%4.55%1.13%1.80%2.60%2.20%1.51%0.21%
TIP
iShares TIPS Bond ETF		3.77%3.46%2.52%2.73%6.96%4.28%1.17%1.75%2.71%2.07%1.48%0.34%

Frequently Asked Questions

With a correlation of 0.92, TDTF and TIP 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.

TIP has higher volatility (1.01%) compared to TDTF (0.86%). In terms of maximum drawdown, TDTF dropped -12.02% vs TIP's -14.57%.

On 10-year performance, TDTF leads with 2.85% vs 2.48% for TIP. Both ETFs have the same 0.18% expense ratio. On volatility, TDTF has been the lower-risk option at 0.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, TDTF has performed better with a 2.85% return vs 2.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

TDTF and TIP have the same expense ratio: 0.18% per year.

TDTF has the higher dividend yield at 4.73%, compared with 3.77% for TIP.

TDTF tracks iBoxx 5-Year Target Duration TIPS, while TIP tracks ICE U.S. Treasury Inflation Linked Bond Index. They also come from different issuers: Northern Trust and iShares.

TDTF currently has the higher Sharpe Ratio (1.49 vs 1.28), 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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