TIP vs. BSV
TIP (iShares TIPS Bond ETF) and BSV (Vanguard Short-Term Bond Index Fund ETF Shares) are both exchange-traded funds - TIP is a Inflation-Protected Bonds fund tracking the ICE U.S. Treasury Inflation Linked Bond Index, while BSV is a Short-Term Bond fund tracking the Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. Both are passively managed. Over the past 10 years, TIP returned 2.53%/yr vs 1.94%/yr for BSV. A 0.64 correlation means they provide meaningful diversification when combined. TIP charges 0.18%/yr vs 0.03%/yr for BSV.
Performance
TIP vs. BSV - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, TIP achieves a 1.40% return, which is significantly higher than BSV's 0.42% return. Over the past 10 years, TIP has outperformed BSV with an annualized return of 2.53%, while BSV has yielded a comparatively lower 1.94% annualized return.
TIP
- 1D
- 0.01%
- 1M
- 0.25%
- YTD
- 1.40%
- 6M
- 1.42%
- 1Y
- 4.76%
- 3Y*
- 4.00%
- 5Y*
- 0.91%
- 10Y*
- 2.53%
BSV
- 1D
- 0.00%
- 1M
- 0.41%
- YTD
- 0.42%
- 6M
- 0.75%
- 1Y
- 3.67%
- 3Y*
- 4.57%
- 5Y*
- 1.63%
- 10Y*
- 1.94%
TIP vs. BSV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TIP iShares TIPS Bond ETF | 1.40% | 6.77% | 1.65% | 3.80% | -12.26% | 5.68% | 10.84% | 8.35% | -1.42% | 2.92% |
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 0.42% | 6.00% | 3.78% | 4.90% | -5.49% | -1.09% | 4.70% | 4.98% | 1.34% | 1.20% |
Correlation
The correlation between TIP and BSV is 0.80, 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 | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.82 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.73 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.70 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | 0.64 |
The correlation between TIP and BSV shifts across timeframes, from 0.64 (all time) to 0.82 (3 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
TIP vs. BSV — Risk / Return Rank
TIP
BSV
TIP vs. BSV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares TIPS Bond ETF (TIP) and Vanguard Short-Term Bond Index Fund ETF Shares (BSV). 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 | BSV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.64 | ||
| Sortino ratioReturn per unit of downside risk | -1.12 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.39 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 2.34 | 2.79 | -0.45 |
| Martin ratioReturn relative to average drawdown | 7.00 | 9.42 | -2.42 |
Loading charts...
Drawdowns
TIP vs. BSV - Drawdown Comparison
The maximum TIP drawdown since its inception was -14.57%, which is greater than BSV's maximum drawdown of -8.54%. Use the drawdown chart below to compare losses from any high point for TIP and BSV.
Loading charts...
Drawdown Indicators
| TIP | BSV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.57% | -8.54% | -6.03% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -1.29% | -0.69% |
Max Drawdown (3Y)Largest decline over 3 years | -4.54% | -1.53% | -3.01% |
Max Drawdown (5Y)Largest decline over 5 years | -14.51% | -8.54% | -5.97% |
Max Drawdown (10Y)Largest decline over 10 years | -14.51% | -8.54% | -5.97% |
Current DrawdownCurrent decline from peak | -0.46% | -0.50% | +0.04% |
Average DrawdownAverage peak-to-trough decline | -3.43% | -0.97% | -2.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 0.38% | +0.28% |
Volatility
TIP vs. BSV - Volatility Comparison
iShares TIPS Bond ETF (TIP) has a higher volatility of 1.03% compared to Vanguard Short-Term Bond Index Fund ETF Shares (BSV) at 0.57%. This indicates that TIP's price experiences larger fluctuations and is considered to be riskier than BSV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| TIP | BSV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.03% | 0.57% | +0.46% |
Volatility (6M)Calculated over the trailing 6-month period | 2.32% | 1.28% | +1.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.39% | 1.79% | +1.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.21% | 2.73% | +3.48% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.74% | 2.38% | +3.36% |
TIP vs. BSV - Expense Ratio Comparison
TIP has a 0.18% expense ratio, which is higher than BSV's 0.03% 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
TIP vs. BSV - Dividend Comparison
TIP's dividend yield for the trailing twelve months is around 3.76%, less than BSV's 3.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BSV Vanguard Short-Term Bond Index Fund ETF Shares | 3.99% | 3.83% | 3.38% | 2.46% | 1.50% | 1.45% | 1.79% | 2.29% | 1.99% | 1.65% | 1.48% | 1.40% |
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 BSV have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TIP has higher volatility (1.03%) compared to BSV (0.57%). In terms of maximum drawdown, TIP dropped -14.57% vs BSV's -8.54%.
On 10-year performance, TIP leads with 2.53% vs 1.94% for BSV. On fees, BSV is cheaper at 0.03% per year. On volatility, BSV has been the lower-risk option at 0.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TIP has performed better with a 2.53% return vs 1.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BSV is cheaper with a 0.03% expense ratio, compared with 0.18% for TIP.
BSV has the higher dividend yield at 3.99%, compared with 3.76% for TIP.
TIP is categorized as Inflation-Protected Bonds, while BSV is Short-Term Bond. TIP tracks ICE U.S. Treasury Inflation Linked Bond Index, while BSV tracks Bloomberg U.S. 1–5 Year Government/Credit Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.18% for TIP and 0.03% for BSV.
BSV currently has the higher Sharpe Ratio (2.01 vs 1.37), 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.
Find the right allocation for TIP and BSV
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer