TDTT vs. STIP
Compare and contrast key facts about FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and iShares 0-5 Year TIPS Bond ETF (STIP).
TDTT and STIP are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TDTT is a passively managed fund by Northern Trust that tracks the performance of the iBoxx 3-Year Target Duration TIPS. It was launched on Sep 19, 2011. 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. Both TDTT and STIP 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: TDTT or STIP.
Key characteristics
| TDTT | STIP | |
|---|---|---|
| YTD Return | 3.98% | 4.40% |
| 1Y Return | 5.90% | 5.97% |
| 3Y Return (Ann) | 1.12% | 1.95% |
| 5Y Return (Ann) | 3.36% | 3.49% |
| 10Y Return (Ann) | 2.29% | 2.38% |
| Sharpe Ratio | 2.25 | 3.08 |
| Sortino Ratio | 3.69 | 5.17 |
| Omega Ratio | 1.47 | 1.68 |
| Calmar Ratio | 1.75 | 4.24 |
| Martin Ratio | 14.07 | 24.29 |
| Ulcer Index | 0.47% | 0.26% |
| Daily Std Dev | 2.93% | 2.06% |
| Max Drawdown | -6.97% | -5.50% |
| Current Drawdown | -1.21% | -0.63% |
Correlation
The correlation between TDTT and STIP is 0.82, 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
TDTT vs. STIP - Performance Comparison
In the year-to-date period, TDTT achieves a 3.98% return, which is significantly lower than STIP's 4.40% return. Both investments have delivered pretty close results over the past 10 years, with TDTT having a 2.29% annualized return and STIP not far ahead at 2.38%. 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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TDTT vs. STIP - Expense Ratio Comparison
TDTT has a 0.18% expense ratio, which is higher than STIP's 0.06% 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
TDTT vs. STIP - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) and iShares 0-5 Year TIPS Bond ETF (STIP). 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
TDTT vs. STIP - Dividend Comparison
TDTT's dividend yield for the trailing twelve months is around 3.83%, more than STIP's 2.46% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TDTT FlexShares iBoxx 3-Year Target Duration TIPS Index Fund | 3.83% | 3.88% | 6.97% | 4.53% | 1.15% | 1.91% | 2.48% | 1.88% | 1.01% | 0.00% | 0.85% | 0.19% |
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% |
Drawdowns
TDTT vs. STIP - Drawdown Comparison
The maximum TDTT drawdown since its inception was -6.97%, which is greater than STIP's maximum drawdown of -5.50%. Use the drawdown chart below to compare losses from any high point for TDTT and STIP. For additional features, visit the drawdowns tool.
Volatility
TDTT vs. STIP - Volatility Comparison
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT) has a higher volatility of 0.59% compared to iShares 0-5 Year TIPS Bond ETF (STIP) at 0.47%. This indicates that TDTT's price experiences larger fluctuations and is considered to be riskier than STIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.