TDTF vs. TIP
Compare and contrast key facts about FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) and iShares TIPS Bond ETF (TIP).
TDTF and TIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TDTF is a passively managed fund by Northern Trust that tracks the performance of the iBoxx 5-Year Target Duration TIPS. It was launched on Sep 19, 2011. 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 TDTF 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: TDTF or TIP.
Key characteristics
| TDTF | TIP | |
|---|---|---|
| YTD Return | -0.35% | -0.74% |
| 1Y Return | -0.67% | -0.93% |
| 3Y Return (Ann) | -0.90% | -1.58% |
| 5Y Return (Ann) | 2.65% | 2.16% |
| 10Y Return (Ann) | 1.93% | 1.80% |
| Sharpe Ratio | -0.12 | -0.16 |
| Daily Std Dev | 5.57% | 5.92% |
| Max Drawdown | -12.02% | -14.56% |
| Current Drawdown | -7.11% | -10.07% |
Correlation
The correlation between TDTF and TIP is 0.88, 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
TDTF vs. TIP - Performance Comparison
In the year-to-date period, TDTF achieves a -0.35% return, which is significantly higher than TIP's -0.74% return. Over the past 10 years, TDTF has outperformed TIP with an annualized return of 1.93%, while TIP has yielded a comparatively lower 1.80% annualized return. 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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TDTF vs. TIP - Expense Ratio Comparison
TDTF has a 0.18% expense ratio, which is lower than TIP's 0.19% 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%.
Risk-Adjusted Performance
TDTF vs. TIP - Risk-Adjusted Performance 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.
Dividends
TDTF vs. TIP - Dividend Comparison
TDTF's dividend yield for the trailing twelve months is around 4.20%, more than TIP's 2.83% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TDTF FlexShares iBoxx 5-Year Target Duration TIPS Index Fund | 4.20% | 3.97% | 7.60% | 4.55% | 1.13% | 1.80% | 2.60% | 2.20% | 1.51% | 0.21% | 1.23% | 0.17% |
TIP iShares TIPS Bond ETF | 2.83% | 2.73% | 6.96% | 4.28% | 1.17% | 1.75% | 2.71% | 2.07% | 1.48% | 0.34% | 1.67% | 1.15% |
Drawdowns
TDTF vs. TIP - Drawdown Comparison
The maximum TDTF drawdown since its inception was -12.02%, smaller than the maximum TIP drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for TDTF and TIP. For additional features, visit the drawdowns tool.
Volatility
TDTF vs. TIP - Volatility Comparison
The current volatility for FlexShares iBoxx 5-Year Target Duration TIPS Index Fund (TDTF) is 1.52%, while iShares TIPS Bond ETF (TIP) has a volatility of 1.66%. 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.