TIP vs. AAAU
TIP (iShares TIPS Bond ETF) and AAAU (Goldman Sachs Physical Gold ETF) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while AAAU is a Gold fund tracking the LBMA Gold PM Price. Both are passively managed. Over the past 5 years, TIP returned 0.91%/yr vs 17.33%/yr for AAAU. At a 0.39 correlation, their price movements are largely independent. Both charge a 0.18% expense ratio.
Performance
TIP vs. AAAU - Performance Comparison
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Returns By Period
In the year-to-date period, TIP achieves a 1.40% return, which is significantly higher than AAAU's -2.40% return.
TIP
- 1D
- 0.01%
- 1M
- -0.21%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.61%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
AAAU
- 1D
- 0.12%
- 1M
- -10.17%
- YTD
- -2.40%
- 6M
- -2.14%
- 1Y
- 24.10%
- 3Y*
- 29.19%
- 5Y*
- 17.33%
- 10Y*
- —
TIP vs. AAAU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.16% |
AAAU Goldman Sachs Physical Gold ETF | -2.40% | 64.06% | 26.91% | 12.96% | -0.50% | -4.01% | 25.02% | 18.17% | 8.28% |
Correlation
The correlation between TIP and AAAU is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.27 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.36 |
Correlation (All Time) Calculated using the full available price history since Aug 15, 2018 | 0.39 |
The correlation between TIP and AAAU shifts across timeframes, from 0.24 (1 year) to 0.39 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
TIP vs. AAAU — Risk / Return Rank
TIP
AAAU
TIP vs. AAAU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Goldman Sachs Physical Gold ETF (AAAU). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| TIP | AAAU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.48 | ||
| Sortino ratioReturn per unit of downside risk | +0.85 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.19 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.34 | 0.99 | +1.35 |
| Martin ratioReturn relative to average drawdown | 7.00 | 2.86 | +4.14 |
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Drawdowns
TIP vs. AAAU - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, smaller than the maximum AAAU drawdown of -24.38%. Use the drawdown chart below to compare losses from any high point for TIP and AAAU.
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Drawdown Indicators
| TIP | AAAU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -24.38% | +9.81% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -24.38% | +22.40% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -24.38% | +19.84% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -24.38% | +9.87% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | — | — |
Current DrawdownCurrent decline from peak | -0.46% | -21.95% | +21.49% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -6.23% | +2.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 8.44% | -7.78% |
Volatility
TIP vs. AAAU - Volatility Comparison
The current volatility for iShares TIPS Bond ETF (TIP) is 1.03%, while Goldman Sachs Physical Gold ETF (AAAU) has a volatility of 7.77%. This indicates that TIP experiences smaller price fluctuations and is considered to be less risky than AAAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TIP | AAAU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.03% | 7.77% | -6.74% |
Volatility (6M)Calculated over the trailing 6-month period | 2.32% | 23.88% | -21.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.39% | 27.10% | -23.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 18.06% | -11.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 17.13% | -11.39% |
TIP vs. AAAU - Expense Ratio Comparison
Both TIP and AAAU 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
TIP vs. AAAU - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, while AAAU has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AAAU Goldman Sachs Physical Gold ETF | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TIP iShares TIPS Bond ETF | 3.76% | 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
TIP and AAAU have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AAAU has higher volatility (7.77%) compared to TIP (1.03%). In terms of maximum drawdown, TIP dropped -14.57% vs AAAU's -24.38%.
On 5-year performance, AAAU leads with 17.33% vs 0.91% for TIP. Both ETFs have the same 0.18% expense ratio. On volatility, TIP has been the lower-risk option at 1.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, AAAU has performed better with a 17.33% return vs 0.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TIP and AAAU have the same expense ratio: 0.18% per year.
TIP has the higher dividend yield at 3.76%, compared with 0.00% for AAAU.
TIP is categorized as Inflation-Protected Bonds, while AAAU is Gold. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while AAAU tracks LBMA Gold PM Price. They also come from different issuers: iShares and Goldman Sachs.
TIP currently has the higher Sharpe Ratio (1.37 vs 0.89), 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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